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theme 2 key terms Flashcards

(85 cards)

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1
Q

selling an asset

A

selling items you own

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2
Q

retained profit

A

profit from sales reinvested

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3
Q

share capital

A

money invested by shareholders at the start of a venture

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4
Q

bank loan

A

money borrowed in the long term from a bank and paid over a year

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5
Q

venture capital

A

an investment from another business

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6
Q

overdrafts

A

money borrowed in the short term from the bank

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7
Q

the entrepreneur’s savings/owners capital

A

money saved from elsewhere that is reinvested

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8
Q

sale of assets

A

selling something you own

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8
Q

peer to peer funding

A

loans without going through the bank given by businesses

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9
Q

business angels

A

individuals with spare cash seeking longer term investments

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10
Q

crowdfunding

A

a large number of people fund a project over the internet making small investments

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11
Q

leasing

A

gain use of an asset without buying it and you make monthly payments

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12
Q

trade credit

A

a business buys something and is given time to pay it back

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13
Q

grants

A

given by the government to support start up

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14
Q

cash flow

A

money going in and going out

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15
Q

cash flow forecast

A

shows the expected income and expenditure of a business over the coming year

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16
Q

working capital

A

day to day cash flow

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17
Q

debtors

A

people who are in debt to you

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18
Q

creditors

A

someone you owe money to

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19
Q

fixed costs

A

costs that DO NOT vary with the level of output or sales

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20
Q

variable costs

A

costs that DO vary with the level of output or sales

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21
Q

breakeven

A

the point at which total revenue equals total costs

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22
Q

contribution

A

the difference between the selling price and how much it costs to make each item

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23
Q

budget

A

a financial plan to agree a spending limit within a business or a financial plan to agree a planned level of revenue/profit

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24
historical budget
this is a budget set for businesses using previous financial figures
25
zero based budgeting
numbers set to 0 and numbers are based off potential
26
cost of sales
the raw materials required to make your product
27
non current assets
the long term assets of a business which aren't expected to be sold within the next year of trading
28
non current liabilities
these are debts which aren't expected to be paid off within the next year pf trading
29
current assets
these are short term assets of the business which are likely to be turned into cash within the next year of trading
30
current liabilities
these are debts which are expected to be paid within the next year of trading
31
working capital
the funds that a business has to meet it's day to day expenses
32
job production
produce one job at a time
33
batch production
you can make different items at once and require both skill and machinery
34
flow production
a continuous process until finished and products are standardised using machinery
34
production
the total amount produced in a given time
35
cell production
production line is split into small teams and each cell is responsible for a different part
36
productivity
output per input (could be a person or machine) per hour
37
efficiency
maximising output whilst minimising costs and waste
38
capacity
the ability to do/produce something
39
capacity utilisation
the proportion of current output compared to maximum output as a % in a given period
40
low utilisation
a company is not being as productive or efficient as they should be
41
stock
the amount of products kept by a business at any one time
42
just in time stock control
where a business waits for stock to almost be empty and then make a reorder level
43
traditional stock control
the concept that you make a regular consistent order but always have a reserve amount of stock
44
lean production
production philosophy 'produce more using less'
45
kaizen
production philosophy 'continuous improvement'
46
gross domestic product (GDP)
the total value of a countries output over a given time period
47
business cycle
the natural rise and fall of the size of the economy that occurs over time
48
inflation
the rise in the price of goods in the UK economy
49
consumer price index (CPI)
looks at hundreds of things we spend our money on - it tracks how these prices have changed over time
50
interest rates
cost off borrowing money and the reward of saving
51
exchange rates
the amount of a foreign currency that can be purchased with one unit of the domestic currency
52
exported goods
UK goods sold abroad
53
imported goods
goods bought into the UK
54
SPICED
Strong Pound Imports Cheap Exports Dear
55
appreciation
when the value of the pound increases compared to other currencies - therefore it may be ideal to buy more from another country
56
depreciation
when the value of the pound falls so it may be less desirable to purchase from another country
57
strong pound
businesses that import save money and businesses that export struggle to sell
58
weak pound
businesses that import costs increase and businesses that export will sell more
59
tax
a financial charge made by a government on individuals, consumers and businesses
60
indirect tax
a tax that is applied to a good or service
61
direct tax
a tax that is directly paid to the government by a business/individual
62
income tax
a proportion of your income that goes towards the government that is relative to the amount you earn
63
national insurance
a taxation on people's income, main rate of 8%
64
positive multiplier effect
positive impacts that occur indirectly due to something else
65
corporation tax
proportion of profits that goes to the government, current tax is 25%
66
council tax
a tax on the general public based on the value of your property and personal circumstances
67
VAT
value added tax which is on goods and services
68
tariffs
a tax on imported goods
69
investment
the amount invested into a new/existing business
70
macroeconomic environment
GDP, inflation, exchange rates (impacts the whole of the economy)
71
legislation
laws passed by parliament/the EU
72
consumer protection legislation
laws in place to protect the person purchasing the product
73
unfair term
a term that causes an imbalance of power unfairly in the favour of the business
74
employee protection
any laws that protect the workers which could be from the public or the company itself
75
equality act
outlines what a business cannot discriminate against
76
environmental protection policy
any law that enforces a business to act in an environmentally friendly way
77
greenwashing
when a business claims to be ethical but doesn't take action on what they promise
78
competition policy
aims to create the environment for effective competition between multiple forms
79
competition and markets authority (CMA)
an independent governing body whose job it is to ensure fair competition
80
takeover
where one business acquires majority shares and takes over another business
81
merges
where one business joins assets and resources together ti make one company
81
health and safety act
employers must provide safe premises and machinery/protect worker health
82
competitive environment
how competitive businesses are with other businesses that make the same/similar products

business (2 decks)

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