Random Bus Terms Flashcards
(30 cards)
Long term and short term financing
Long term financing is generally forecasts and prices projects and short term financing is typically for continuing operations
Retained earnings/profit
Profits kept from a bus and used as source of finance when in need to pay a debt
(it is recorded under shareholders’ equity on the balance sheet)
Overdraft
A deficit in a bank account caused by drawing more money out than the account holds
Market share
Amount sold by a single bus as a % if the total market for the product concerned
Amonopoly
Only one company in an area
Prices are higher
Minimal choice in products
Demand
Demand for a good or service is the quantity that customers are willing or able to buy at a given price or period of time
Share capital
the part of the capital of a company that comes from the issue of shares.
Unlimited liability
Business owners are responsible for all the debts of a business if it fails
Turn over
Total business income from sales of its goods of service over a period of time
Autocratic leadership
Decisions are made by the owner with little or no consultation with others
Capacity utilisation
Measures what proportion or % of the theoretical maximum possible output is actually produced
Democratic management
Decisions are made after consulting with colleagues
Efficiency
Producing at the lowest possible average cost, using resources as effectively as possible
Elasticity
Measures how much one variable changes in response to a change in another related variable
Entrepreneurs
Take on the risk of setting up, organising and operating a business venture
Equilibrium price
The price at which quantity demanded equals quantity supplied; the market clearing price
Gross profit
What is left after the cost of sales has been subtracted from turnover
Hierarchy
The layers of management in an organisation
Inflation
A sustained rise in the general price level expressed as a percentage change
Kaizen
Japanese word for continuous improvement, a whole company approach to quality control
Laizzes faire
Management style that places trust in employees so that they can make decisions
Lean management
System of production that rises minimum costs during the production process
Limited liability
In the event on financial problems responsibility for any debts is limited to the owners original investment
Liquidity
The extent to which a business can cover its debts with cash or easily sold assets
