Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

A-level Business Edexcel: Key Terms > Theme 3 > Flashcards

Theme 3 Flashcards

(97 cards)

Start Studying
1
Q

PESTLE Analysis

A

Assessing the likely impact of the PESTLE factors in the external environment of a business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Monopoly

A

A single producer within a market in theory but in practice one with less than 25% market share

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Business Cycle

A

Patterns of ups and downs in demand and output within the economy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Boom

A

Higher levels of customer demand, business confidence, profits, and investment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Recession

A

Falling levels of customer demand, business confidence, profits, and little investment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Slump

A

Very low levels of customer demand, business confidence, profits, and investment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Recovery

A

Slowly rising levels of customer demand, business confidence, profits, and investment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

GDP

A

Total value of a country’s output over one year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

GNP

A

Total value of a country’s output over one year plus net income from abroad. Used more

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Interest rate

A

The cost of borrowing money and the return for lending money. Set by the Monetary Policy Committee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Exchange rate

A

The price of one country’s currency is expressed in another currency.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Inflation

A

An increase in the general level of prices of goods within an economy. Fall in the purchasing power of money

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Deflation

A

A decrease in the general level of prices of goods within an economy. Rise in the purchasing power of money

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Cost-Push inflation

A

Occurs when there is an increase in the costs of production forcing prices up

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Demand-Pull inflation

A

Where prices rise because there is excess demand in the economy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Social Responsibility

A

The duties of a company towards employees, customers, society, and the environment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Ethical Behaviour

A

Actions and decision that are seen to be morally correct

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Technological change

A

Adapting new applications of practical or mechanical sciences to industry and commerce

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Franchise

A

When a business (franchisor) gives the right to supply its products to another business (franchisee). Involves licensing of trademarks and methods of doing business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Patent

A

An official document granting the holder to the right to be the only producer or user of the product or process

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Incorporated business

A

Has a legal identity that is separate from the individual owners. The business can own assets, owe money, and enter into contracts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Unincorporated business

A

No distinction in law between the individual owner of the business or the company itself.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Unlimited liability

A

Owners of the business are liable for all the debts that the business may incur

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Limited liability

A

Where the owners of the business are liable for the share capital they invested into the firm and nothing else

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Sole Trader
A business owned by one person
26
Private Limited Company (Ltd)
A small to medium-sized company usually run by a small group of individuals who own it
27
Public Limited Company (PLC)
A business with limited liability, a share capital of over £50,000, and generally, a wide spread of shareholders
28
Business Plan
A report describing the marketing strategy, operational issues, and financial implications of a business start-up
29
Corporate Aims
The long-term intention of a business
30
Stakeholder
An individual or group with a direct interest in the activities and performance of an organisation
31
SWOT Analysis
A technique that allows the company to assess its overall position. Internal audit (strengths and weaknesses): represents the PRESENT position of the product or company. External audit (opportunities and threats): represents the FUTURE potential of the company.
32
Mission Statement
Catch summary of reasons why a business exists
33
Aim
Outlines what the business wants to achieve in long-term
34
Mission
Outlines the purpose of the business
35
Objectives
Specific outcomes of a business wants to achieve
36
Strategy
Medium to long-term plan to achieve corporate objectives
37
Porter's strategic matrix
finds a way to achieve sustainable competitive advantage over other competitive products and firms in the market
38
Differentiation strategy
Superior product quality, finding the unique selling point
39
Low-cost strategy
low-cost operator
40
Ansoff's matrix
helps identify new market of potential marketing strategies for a business
41
Porter's Five Forces
Buyers Suppliers Substitutes New Entrants Existing rivals
42
Profitability
The quality or state to be profitable, the capacity to make a profit
43
Economies of Scale
This happens when unit costs fall as output rises
44
Mergers
Combination of two separate businesses that have agreed to form a new firm
45
Takeover
Acquiring control over another business
46
Organic growth
Expansion within the business
47
Inorganic growth
Expansion beyond the business
48
Quantitative Sales Forecast
based on historical sales data, that allows businesses to predict future revenue, make informed decisions, and plan future sales strategies
49
Extrapolation
Using trends established from historical data to forecast the future.
50
Correlation
Looks at the strength of the relationship between two variables
51
Investment appraisal
The process of analysing whether investment projects are worthwhile
52
Payment Method
The time it takes for a project to repay its initial investment
53
Annual Average Return (ARR)
Annual percentage return on an investment project based on average returns earned by the project.
54
Net Present Value (NPV)
Calculates the current monetary value of the project's future cash flows
55
Decision Trees
Helps decide whether the net gain is worthwhile
56
Probabilities
The chances of an outcome happening
57
Expected Values
Financial value of an outcome
58
Net gain
Value to be gained from taking a decision and calculating expected values and deducting the costs associated with the decision
59
Critical Path Analysis
A project analysis and planning method that allows a project to be completed in the shortest possible time
60
Corporate influences
internal factors affecting business decisions.
61
Short-termism
A business prioritises short-term decisions
62
Long-termism
short-termism possibly occurs at the expense of long-term performance measures
63
Mittelstand
Germany's small-medium sized companies, the strongest driver of innovation and tech in the country, renowned across the world
64
Corporate Culture
Sums up the spirit, attitudes, behaviors, and ethos of an organization
65
Power culture
control from the centre
66
Role Culture
clearly delegated authorities with highly defined structures
67
Task Culture
Teams are formed to solve particular problems
68
Person Culture
People believe in themselves to be superior to the business
69
Ethics
Moral guidelines which govern acceptable behaviour
70
Income Statement
Difference between the total income and costs of the firm showing the profit or loss made by the business
71
Balance Sheet
Snapshot of business assets (owed and owned) and liabilities (owes) on a particular day
72
Non-current assets
assets and property owned by a business that are not easily converted to cash within a year
73
Current Assets
cash and other assets that are expected to be converted to cash within a year.
74
Non-current liabilities
the debts a business owes, but isn't due to pay for at least 12 months
75
Current liabilities
amounts due to be paid to creditors within twelve months.
76
Ratio Analysis
quantitative method of gaining insight into a company's liquidity, operational efficiency, and profitability by studying its financial statements
77
Return on capital employed (ROCE)
a financial ratio that is used to measure the profitability of a company and the efficiency with which it uses its capita
78
Gearing Ratio
a group of financial metrics that compare shareholders' equity to company debt in various ways to assess the company's amount of leverage and financial stability
79
Human Resources
the department within a business or organization responsible for managing its employees
80
Labour Turnover
the net departure of employees over a defined period of time
81
Labour Productivity
the measure of how much output is produced per unit of labour input
82
Absenteeism
when an employee consistently doesn't appear for work at their scheduled time.
83
Financial Rewards
Commission, bonuses, piece-rate payments
84
Employee Share Ownership
Employees are given a percentage of shares as part of their contract
85
Employee Empowerment
giving employees power to do their job and authority to make decisions
86
Consultation Strategies
A way for employees to provide opinion for business to feel more included
87
Change management
involves the process that ensures a business responds to the environment it operates in.
88
Step change
significant changes that occur rapidly
89
Incremental change
occurs over a period of time, small changes
90
Factors of Change
Time and speed, resistance to change, size of organisation , performance, external shocks
91
Mitigating risks
taking action that will reduce and minimise risk
92
Business Continuity
Planning on how to restore things to normal following a setback or disaster
93
Succession planning
Thinking and planning ahead for when a leader leaves and needs to be replaced
94
Contingency planning
a course of action designed to help an organization respond to an event that may or may not happen
95
Risk management
Identifying and dealing with the risks threatening the firm
96
Scenario Planning
Always expect the unexpected
97
Crisis management
dangerous events (earthquakes)

A-level Business Edexcel: Key Terms (2 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions