Year 11 Business Studies Flashcards
(195 cards)
1
Q
What is advertising?
A
A method of commuinicating information about the product; the business pays for advertising time/space
2
Q
What is an aim?
A
The intention to reach a goal
3
Q
What is air pollution?
A
Air pollution is contamination of the indoor or outdoor environment by any harmful substances into the air causing damage to humans, animals, plants or the built enviorment.
4
Q
What is an asset?
A
Something the business owns; it has a value.
5
Q
What is average rate of return?
A
A way of comparing the profitability of different choices over the expected life of an investment.
6
Q
What is boston matrix?
A
A model which helps businesses analyse their portfolio of businesses and brands.
7
Q
What is a brand image?
A
Brand image is more than a logo that identifies a business, product or service.
8
Q
What is a break-even chart?
A
A chart that shows the sales volume level at which total costs equal sales.
9
Q
What is a break-even output?
A
The level of output at which total revenue is equal to total costs of production.
10
Q
What is a buffer stock?
A
A stock of raw materials held in reserve to protect the production process from unforeseen shortages.
11
Q
What is a business plan?
A
A business plan is a document created by a company that describes the company’s goals
12
Q
What is Cash?
A
Money in coins or notes
13
Q
What is cash flow forecast?
A
A plan that shows how much money a business expects to receive in, and pay out, over a given period of time.
14
Q
What is cash inflow?
A
Money going into a business which could be from sales or investments
15
Q
What is cash outflow?
A
Money paid out by the businesses from operations or investments
16
Q
What is Centralisation?
A
Maintaining control by keeping authority at the senior levels of the organisation
17
Q
What is a Chain of Command?
A
Rank within an organization that are ordered from lowest to highest.
18
Q
What are channels of distribution?
A
A company uses to get a product or service into the hands of a consumer as quickly and effciently as possible
19
Q
What is a closing balance?
A
The amount of money that remains in the account at the end of an accounting period.
20
Q
What is a commission?
A
A payment given to employees based on the sales they make
21
Q
What is a competition?
A
The rivarly between existing companies, services or products that exists within a specfic market
22
Q
What is competitive pricing?
A
Setting the price of a product so that it is in line with competitors prices.
23
Q
What is a consumer law?
A
Laws designed to ensure that businesses make products that are safe and of good quality, and that they deal with customes honestly and fairly
24
Q
What is consumer spending?
A
The money spent by households on goods and services to satisfy their needs and wants.
25
What is contracts of employment?
A legal document that sets out the terms and conditions of the job for the employer and the employee
26
What is cost?
The money spent by a business
27
What is Cost-plus pricing?
Setting the price of a good or service at an amount higher than the cost of producing it so a profit is made
28
What is a customer?
A person who buys goods or services from a shop or business.
29
What is a customer engagement?
An interaction between an external customer and an organisation through various online or offline channels.
30
What is a customer satifaction?
Whether customers are pleased with the goods/services they recieve; wether they would purchase again.
31
What is Decentralisation?
Where authority is spread widely through the organisation.
32
What is delayering?
The reorganisation of the organisation's employees so that there are fewer levels of management.
33
What is delegation?
Allocating a task to someone who would not normally be responsible for it.
34
What is a demand?
A consumer's desire to buy goods and services without any hesitation and pay the price for it.
35
What is directors?
The people who are elected by the shareholders to run the business on their behalf.
36
What are diseconomies of scale?
When a business grows too large, leading to a possible increase in unit cost.
37
What is disposal waste?
The removal, storage or destruction of unwanted material. Methods include recycling, burning and landfill sites.
38
What is dividend?
The distribution of a company's earnings to its shareholders.
39
What is an E-commerce
Business transactions carried out electronically on the internet.
40
What is an economies of scale?
The cost advantage of producing on a large scale. As output increases until cost decrease.
41
What are employees?
Individuals who work full time or part time for the business; they have a contract of employment detailing their duties and rights.
42
What is an employment law?
Regulates the relationship between employers and employees.
43
What is an enterprise?
The ability to identify business ideas and opportunities to bring them to fruition and to take risks where appropriate.
44
What is an entrepreneur?
A person who sets up a business or businesses, taking on financial risks in the hope of profit.
45
What is an Equality act (2010)?
Protects people from discrimination in the workplace and in wider society. It sets out the different ways in which it is unlawful to treat someone.
46
What is ethical objectives?
The moral principles and values underpinning human behaviour.
47
What are ethics?
The moral principles that guide how a business operates.
48
What are exchange rates?
The value of one currency for the purpose of conversion to another like £1.00 = $1.21
49
What is expansion?
The proccess of increasing a business size.
50
What is an export?
Good/service sold to a customer in another country.
51
What is external growth?
The growth of a business by joining with another by merger or takeover
52
What are external sources of finace?
Money that comes from outside a bussiness like, bank loans and overdrafts, new partners, trade credit.
53
What are factors of production?
The elements that combine in the production proccess: land, labour, capital and enterprise.
54
What are fixed costs?
The costs that stay largely the same, regardless of the business output.
55
What is flat organisational structure?
An organisational structure with a wide span of control and few levels of hierarchy (a short chain of command)
56
What is flow production?
Using a production line to make goods continuously and in large numbers.
57
What are focus groups?
A small number of people from the target market brought together to discuss a particular product; produces qualitative data about their preferences and opinions.
58
What is franchising?
A business marketing strategy to cover maximum market share.
59
What are fringe benefits?
An extra benefit supplementing an employee's money wage or salary, for example a company car, private healthcare.
60
What is full time?
Working all the usual hours required of an employee; usually 35 hours or more.
61
What is a gap in the market?
An opportunity for a new business (or expansion) which may meet a need that is not being met, or a group of potential customers who are not yet purchasing a particular good/service.
62
What is global warming?
The steady increase in the earth’s temperature due to emissions and the build- up of greenhouse gases, resulting in climate changes.
63
What is globilisation?
The trend for large businesses to operate on a worldwide scale; money, goods and services can be transferred across national borders.
64
What are goods?
Items that are produced from raw materials for sale to businesses or consumers.
65
What are goverment grants?
A sum of money awarded to your business from the goverment that you don't have to pay back.
66
What is growth?
A business’ increase in size. Methods include: asset value, employees, market share, markets, profits and sales.
67
What is health and saftey at work act (1974)
Sets out the duties and responsibilities of both employers and employees for health and safety in the workplace.
68
What is an hierarchy?
The management structure of a business/organisation showing the levels of responsibility. It is often shown as an organisation chart.
69
What is a hire purchase?
Buying items by making a small initial payment and paying the remaining amount in instalments over an agreed period of time.
70
What is an import?
Good/service bought from a supplier in another country.
71
What is an income statement?
summary of the revenue and expenses over an accounting period that lead to a profit or loss position.
72
What is an introdunction?
Training given to a new employee when they start a new job; it provides information about the business, its operation and working practices.
73
What is an inspection?
Testing/examining items to check that materials or items conform to the specified requirements/standards.
74
What is an integration?
Two or more businesses join together.
75
What are interest rates?
The rate charged for borrowing money over a period of time, or the reward for saving money.
76
What are job analysis?
The process of determining what the job entails, including responsibilities and tasks.
77
What is a job description?
A summary of what the job entails, including job title, duties and who they are responsible for/to.
78
What is a job share?
A system where two employees choose to share a full time job; they receive the salary and benefits on a pro rata basis according to the proportion of the full time hours that each works.
79
What is just in case (JIC)?
Organising procurement to ensure that the production process never runs out of stock, reducing the number of sales lost due to insufficient raw materials.
80
What is just in time (JIT)?
Organising the ordering of raw materials and components to be delivered just before they will be used, reducing the need for storage.
81
What is a lean production?
Continually working to reduce the resources used to create products: raw materials, labour, machines and premises.
82
What is a level of employment?
The percentage of the population of working age that are employed.
83
What is a liability?
The extent of the owner’s/owners’ responsibility for the debts of the business.
84
What is a limited liability?
The owners are not responsible for the debts of the business. The limit of their liability for the business debts is the amount they invested.
85
What are loans?
A fixed sum of money borrowed for a specified period of time at an agreed rate of interest; repaid in instalments.
86
What is a local community?
The individuals, other businesses and organisations that are located close to the business. The business interacts with these groups.
87
What is a location?
The site of a business and the reasoning behind the choice of site.
88
What are logistics?
Managing the movement of supplies and products to ensure the timely delivery of supplies to the production process and finished products to customers.
89
What is a loss?
Where expenditure is greater than income.
90
What isna loss leader?
A good or service sold at below cost price to bring customers into the shop with the intention that, once there, they may purchase full-priced items too.
91
What is managment?
Organising and coordinating business activities in order to fulfil production and meet the business’ objectives.
92
What is margin of saftey?
The amount by which current sales exceed the break-even level of output.
93
What is a market?
Where those wishing to buy goods/services make contact with those who have them to sell.
94
What is a market research?
Collecting information about the customers’ needs, wants and preferences that will help the business to make design, production and marketing decisions.
95
What is a market share?
The proportion of the whole market for a product that is held by the business.
96
What is marketing?
The coordination of activities that ensure that customers get what they want, in the amounts they want, when they want it and at a price that suits them.
97
What is marketing mix?
The combination of four areas of marketing activities (price, product, promotion and place) to make sure that customers’ needs and wants are met while generating optimum revenue.
98
What is a M-commerce?
Business transactions are carried out electronically by mobile phone.
99
What are mergers?
When two or more businesses agree to join together.
100
What is a mortage?
A method of borrowing to purchase property, using the property as security.
101
What is motivation?
The reasons people are interested in and committed to their job.
102
What is national minimum wage/living wage?
The lowest hourly rate that can legally be paid by an employer to an employee.
103
What are needs?
The human wants that are essential to survival; clothing, food, shelter, warmth or water.
104
What is net cash flow?
The difference between cash inflows and cash outflows. Net cash flow = cash inflows – cash outflows
105
What is nosie pollution?
A type and level of noise that is excessive and disturbing to people or animals.
106
What is Not-for-profit organisations?
Associations, charities, co-operatives or voluntary organisations set up to further non-monetary ideals such as cultural, educational, religious and public service. Profits/losses are retained/absorbed.
107
What is an objective?
A specific statement that defines a precise goal that can be measured and delivered within a given time.
108
What is a off-the-job training?
Employees are trained away from their job, at a college, training provider or the business’ training centre.
109
What is on-the-job training?
Employees learn alongside experienced colleagues while they are doing the job.
110
What is a opening balance?
The amount brought forward from the end of the preceding accounting period so that it is the starting figure for the new one.
111
What are opportunity cost?
The cost of making one choice concerning the use of limited resources at the expense of an alternative choice.
112
What is an organic growth?
A business grows by increasing its output, by increasing its customer base or by developing new product(s).
113
What is organisational structures?
The way in which the organisation is divided into levels of management, functions and responsibilities.
114
What is an overdraft?
Borrowing from a bank by drawing from a current account so that the balance becomes less than zero.
115
What are owners?
Individuals who own the business or own a share(s) in it, in return for the rights to decision making and profits, balanced with the risks involved.
116
What is part time?
Working only a proportion of the full time hours.
117
What are partnerships?
A business that is owned and operated by a group of between 2 or more people.
118
What is a person specification?
Identifies the requirements of the job holder, including qualifications, experience and skills.
119
What is a point of sale?
Opportunities to communicate information about the product in the place where it is sold (retail outlet); window displays, hanging signs or shelf signs.
120
What are post-sales-servicing?
Maintenance or repair of equipment by the manufacturer or supplier during or after the warranty.
121
What is a PR
Managing the relations with groups such as consumers, the media, pressure groups or investors to present a favourable impression and generate interest.
122
What is price penetration?
Fixing a low price when a new product is first introduced (into an established market) so that the product gains market share quickly. Once the product is established, the price is then raised so that profit is increased.
123
What is price skimming?
Setting a very high price when a product (often technology item) is first introduced to the market in relatively small numbers; only those who can afford to pay high prices to own the latest models will be able to purchase the product. The price is later reduced so that others can afford to buy.
124
What is a primary industry?
A business that extracts the earth's natural resources.
125
What is a primary reasearch?
Collecting information first-hand direct from the public; field research including surveys, questionnaires and testing designed specifically for the market/product.
126
What is a private limited company (Itd)
A business that is owned by shareholders; the shares are not available to the general public. Shareholders have limited liability.
127
What is procurement?
The process of buying goods and services including dealing with:
demand
selection of suppliers
analysing and negotiating prices
making the purchase
managing payments.
128
What is a product differentiation?
Developing the features that set a product apart from others in the market (such as benefits, style, price) and using that as part of advertising and promotion.
129
What is product kmowlege?
An in-depth understanding of the features, use and application of the good/service that will enable the person selling it to provide any information that the purchaser wants before committing to buy.
130
What is a product life cycle?
The stages through which a product travels during its journey from being an idea to being old and dated: research and development, introduction, growth, maturity, decline.
131
What is product portfolio?
The range of products offered by one producer.
132
What is a product recalls?
The withdrawal from sale by the manufacturer of a defective or contaminated item.
133
What is productivity
The amount produced by a worker/machine/factory in a given time; the ability to produce more output with fewer resources.
134
What is profit?
The difference between the money received from the sale of a good/service and the amount it cost; the amount that remains after all the costs have been paid.
Profit = total revenue – total cost
135
What is profit maximisation?
A business’ ability to make maximum profit with low operating expenses.
136
What is profit sharing?
A scheme that pays employees an additional amount based on the year’s profits.
137
What is promotion?
Communicating information about the product to:
make consumers aware of a product
remind customers about a product
persuade customers to buy.
138
Whatbis proximity to market?
Businesses that serve their customers directly must be located close to those customers.
139
What is a public limited company (plc)?
A business that is owned by shareholders. Anyone can buy shares in the business. Shareholders have limited liability.
140
What is purchasing?
The business buys the goods and services that it needs for producing the goods it sells or for delivering the services it sells.
141
What is qualitative market research?
Collecting information about potential customers’ opinions and preferences about the attributes/characteristics/properties of a product; open questions allow respondents to express their own views by not limiting their responses.
142
What is quantitative market research?
Using sampling techniques such as surveys where the findings are expressed numerically; closed questions allow a limited choice of responses and are easy to turn into statistics for analysis.
143
What is raising finance?
Getting the money to pay for starting the business or for developing it.
144
What are raw materials?
Businesses that use raw materials that are heavy and/or bulky choose to locate close to their suppliers to reduce the cost of transport or storage.
145
What is recruitment?
The process of hiring a new employee.
146
What is reycling?
The conversion of waste into reusable material.
147
What is a retailer?
A business or person that sells goods to the consumer.
148
What is a retained profit?
An internal source of finance; a portion of the year’s profit is kept back to fund projects.
149
What is a revenue?
The income generated from the sale of goods/services.
150
What is a risk?
The possibility that the return on investment will be lower than expected.
151
What is a salary?
A method of paying employees for their work; based on a fixed annual amount, normally paid monthly.
152
What is a scarce resources?
When the raw materials that are available are not sufficient to meet needs.
153
What is secondary industry?
A business that uses raw materials to manufacture goods or construct items.
154
What is a secondary research?
Examining information from published sources; desk research using information that has been collected for other purposes.
155
What is segmentation?
Breaking the whole market for a product into different groups or types of consumers with similar needs/wants/characteristics; enables the marketing mix to be designed to meet their needs more precisely.
156
What is selection?
The process of choosing which applicant to employ.
157
What is a service?
An action that is carried out to fulfil a need or demand in return for payment.
158
What are share(s)?
The units of the business that are available for sale to investors.
159
What is a share issue?
New shares in a business made available for the public to buy.
160
What is a shareholder(s)
Those people who own shares in a limited company; each shareholder is a part owner of the business.
161
What is a shareholder value?
The value that a shareholder is able to get for the money invested in the business: capital gains, dividend payments, pay-outs to shareholders or proceeds from buyback programmes.
162
What are social objectives?
A business’ goals that relate to fair treatment of the people concerned: customers, investors, suppliers or workers.
163
What are sole traders?
A business that is owned and operated by one person.
164
What are sources of finace?
Ways of obtaining the funds the business needs; money may be needed to meet short or long term needs.
165
What is span of control?
The number of people for whom a manager is directly responsible.
166
What is staff retention?
Keeping staff once they have been employed.
167
What are skateholders?
Those with an interest in the way that a business operates.
168
What is statement of finacial positon?
Reports the assets, liability and equity of a business on a specific date; formerly known as the balance sheet.
169
What are styles of management?
The methods used by those in leadership roles to achieve the most effective outcomes from the employees for whom they are responsible.
170
What is a supplier?
A business that provides goods/services.
171
What is a supply chain?
The network of organisations, people, activities, information and resources that take the product/service from supplier to customer.
172
What is survival?
The capacity of a business to stay in business. It is dependent on the business selling sufficient amounts of its goods/services to cover all its costs.
173
What is sustainability?
The process of operating without damaging the environment or depleting natural resources.
174
What is a takeover?
One business takes control of another.
175
What is tall organisational structure?
An organisational structure with a narrow span of control and many levels of hierarchy (a long chain of command).
176
What is a target market?
The particular group of customers to which a business aims to sell its product; a particular market segment.
177
What is technical economies of scale?
The benefits that large businesses gain from having the funds to invest in expensive machinery that brings cost savings.
178
What are telesales?
Attempting to sell a good/service by making the initial contact by telephone.
179
What is a tertiary industry?
A business that provides services to consumers or other businesses.
180
What are total costs?
All the costs involved in producing goods/services. Total costs = fixed costs + variable costs
181
Total quality managment (TQM)?
A philosophy that involves everyone in the business in the quest for continual improvement in the attitudes, practices, structures and systems that combine to create a top-quality product.
182
What is a trade credit?
The process of buying items from a supplier and paying for them later; for example, 30 days after invoice date.
183
What are trade descriptions?
Protecting customers from false or misleading descriptions about products or their prices.
184
What is antraffic congestion?
The effects of overuse of transport networks, for example slower speeds, traffic queues and longer journey times.
185
What is training?
Employees learn the skills and techniques needed to do the job or to prepare for a new role.
186
What is a unique selling point (USP)?
The key benefit of a good/service; it differentiates the product from others and will be the focus of advertising and promotion.
187
What is a unit cost?
The average cost of each unit. Unit cost = total cost ÷ quantity
188
What is a unlimited liability?
When the owner(s) are responsible for all the debts of the business. Their personal funds would be used to settle the business’ debts if the business’ funds were insufficient.
189
What are variable costs?
The costs that change as the business' output changes.
190
What is a wage?
A method of paying employees for their work based on an hourly, weekly or piece of work basis, usually paid weekly or monthly.
191
What are wants?
Things that people would like to have; not limited to the things they need to survive.
192
What is waste?
The unwanted material left over from the production process; it may have little or no value and the business may have to pay for its disposal.
193
What is wholesaler?
A business or person that buys goods in large quantities from producers, stores them in warehouses and sells them on to retailers.
194
What is word of mouth?
Personal recommendations from satisfied customers to prospective customers.
195
What is zero-hour contact?
A contract of employment where the employer is not obliged to provide any minimum hours of work; the employee is not obliged to accept any work that is offered.
