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Business A2 > key Terms > Flashcards

key Terms Flashcards

1
Q

What is a mission statement ?

A

The Purpose of the business

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2
Q

What is a vision statement ?

A

A business’s aspirations for the future

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3
Q

What is a corporate objective?

A

A medium to long term goal established to coordinate the business

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4
Q

What is a tactic ?

A

Short term decisions

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5
Q

What is a strategy?

A

A long term plan to achieve the business’s vision

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6
Q

What is a balance sheet?

A

Financial statement showing the assets and liabilities of a business

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7
Q

What are assets?

A

An asset is something that a business owns. What they use the capital to purchase.
Non current
Current

For example, land property and equipment

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8
Q

What are liabilities ?

A

A liability is a debt owed by the business.
Non current
Current

For example, mortgages and loans

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9
Q

What is total equity?

A

Money invested into the business by its owners

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10
Q

What is an income statement ?

A

An accounting statement showing a firms sales revenue ( either profit or loss)

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11
Q

What is absenteeism?

A

When an employee is not present at the workplace

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12
Q

What is labour turnover?

A

The percentage of a business’s employees who leave the business within a year

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13
Q

What is employee retention?

A

The extent that the business holds onto its employees

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14
Q

What are core competencies ?

A

The unique abilities that a business has

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15
Q

What is a competitive advantage ?

A

A specific superiority that a business has in comparison to competitors and rivals

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16
Q

What is outsourcing?

A

When an organisation uses a separate business to complete part of the work

17
Q

What is privatisation?

A

Transferring an organisation from state ownership to the private sector

18
Q

What is GDP?

A

Gross domestic product measure the value of a country’s total output of goods and services

19
Q

What is price elasticity of demand?

A

This measures the sensitivity of the quantity demanded of a product

20
Q

What is inflation?

A

Rise in the price level and fall in the value of money

21
Q

What is deflation?

A

A fall in the price level and rise in the value of money

22
Q

What is the difference between the fiscal policy and the monetary policy?

A

The fiscal policy is the use of tax and public expenditure to manage the economic activity

The monetary policy is controlling the amount of money within the economy to achieve the desired economic activity level

23
Q

What are barriers to entry?

A

Factors that make it difficult for a business’s to sell products in a market for the first time

For example, high advertising costs

24
Q

What is the opportunity cost?

A

The best alternative as a result of a deciison

25
Q

What are economies of scale ?

A

When unit costs fall as a business expands

26
Q

What are diseconomies of scale?

A

When unit costs rise as the business expands

27
Q

What is kaizen?

A

A process of continuous improvement.

Small improvements can leads to major improvements to performance over time

28
Q

What is benchmarking ?

A

When a business tries to match the approach and success to another organisation

29
Q

What is the difference between tariff and quota ?

A

Tariff is a tax places on foreign in goods and services

A quota is a limit on the number of imported goods and services

30
Q

What is e-commerce ?

A

The buying and selling of goods or services

31
Q

What is the difference between incremental change and distributive change ?

A

Incremental is step by step changes, with gradual improvements
Disruptive changes are big ‘game changing’ developments that make a significant impact

32
Q

What is the difference between a planned strategy and an emergent strategy?

A

A planned strategy is the strategy that the managers intend to implement
An emergent strategy is the strategy that actually develops over time

33
Q

What is strategic drift?

A

When the strategy of the business no longer matches the environment in which it operates
For example, it drifts from the original strategy

34
Q

What is divorce between ownership and control?

A

When the owners of a business do not control the day to day decisions

35
Q

What is contingency planning?

A

When a business plans for possible but unlikely events

36
Q

What is network analysis?

A

When a network diagram is used to analyse the activities involved in a project to identify the fastest way of completing the project

Business A2 (3 decks)

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