Business Studies (0450) - Ultimate Quiz 1 Flashcards

Difference between the selling price of a product and the cost of bought in materials and/or components

The value of the currency rises so it buys more of another currency than before

Managers takes decisions without consulting employees

A system of production where machinery and technology carry out the work and few people are directly employed.

Total cost of production divided by total output [OR] The cost of producing a single unit of output [OR] = Total Cost / Output

The production of goods whereby each batch of products passes through one stage of production at the same time before moving on to the next stage [OR] A production method where similar items are produced together and a whole batch moves through the different stages of production together [OR] Products are made in groups of items of a certain amount

Senior management of the business responsible for strategic decisions.

An additional payment above basic pay usually paid for performance exceeding a given target.

unique name of a product or business that distinguishes it from other products or businesses

The general impression, perception or reputation of a product that consumers have of the product or brand

Level of sales at which total costs is the same as total revenue [OR] Level of sales at which business makes no profit or loss [OR] Total revenue (TR) = Total cost (TC) [OR] The level of output at which Total revenue is equal to Total Cost

Fluctuations in economic activity that an economy experiences over time [OR] Changes in level of economic growth over time [OR] A period during which a country or economy goes from growth to recession and back again [OR] The variation in national output over a period of time

A statement of a specific target that a business works towards [OR] A statement of a specific target that business wants to achieve in a specific period of time.

A document containing the business aims and objectives and other important details about the operations, finance and owners of a business [OR] A detailed written document outlining the purpose and aim of a business which is often used to persuade lenders or investors to finance a business proposal [OR] A document that states aims and objectives and shows how business plans to achieve them

It is the fund available for a business to carry out its spending requirements [OR] A source of finance used by the business to acquire assets.

Equity + Non-current liabilities [OR] Total value of capital used in the business [OR] Value of all long term finance invested in a business

Machinery is the key resource in the business rather than labour [OR] Products are produced using capital equipment more than labour

It refers to the timing and amounts of cash moving in and out of a business.

An estimate of cash inflows and outflows of a business usually on a month by month basis [OR] Estimate of timings and amount of cash inflows and outflows over a given period of time or over months to come

The structure in an organisation which allows instructions to be passed down from senior management to lower levels of management [OR] The route through which authority is passed down through an organisation [OR] Shows how communication and tasks are passed down the business from the top to the bottom

A market with a large number of businesses selling similar products which are targeted at the same group of consumers.

When a product is priced in line or just below competitors’ prices to try to capture more of the market [OR] Setting a price similar to that of competitors products which are already established in the market [OR] When the price of a good is set at the same level as other products in the market and at a level customers expect or are willing to pay

Cost effective implies that return on money spent is high enough to justify the spending.

Cost of producing or buying in the goods sold by the business during a period of time [OR] Variable cost of making the goods sold [OR] Cost per unit x number of output sold [OR] Opening inventory + purchases – closing inventory

The price is based on the cost of making a product and the addition of a fixed percentage for profit/mark up. [OR] The cost of manufacturing the product plus a (profit) mark-up [OR] = [total cost / total number of units] + % mark up

Asking a large number of people each for a small amount of money to raise finance for a project

Current assets refer to those assets owned that can be quickly converted into cash.

Short-term debts owed by a business, to be repaid in less than one year [OR] Debts of a business which it expects to pay before the date of the (next) statement of financial position

Likelihood of previous customers returning to buy goods or services from a business. [OR] Customers keep buying from a particular shop, business or buy one particular product, rather than use other shops or buy products made by other businesses.

Giving a subordinate the authority to perform particular tasks [OR] When a manager gives authority to another employee to complete a task

Employees are consulted before decisions are made. This is a form of two way communication.

A currency’s value falls against another currency [OR] The value of the currency goes down with respect to another currency [OR] When the value of a currency falls and it buys less of another currency than before

Termination by the employer because the employee has broken company rules or is not performing work to the required standard [OR] When the employment is ended against the will of the employee, usually for not working in accordance with the employment contract [OR] When employee told or made to leave their job because their work or behaviour is unsatisfactory.

Payment to shareholders from profits of a company [OR] Return to shareholders for investing in the company

Process of buying and selling over the Internet

Strong rise in level of economic activity [OR] Period of time when GDP rising rapidly

When a country’s GDP increases and more goods and services are produced than in the previous year

Factors that lead to lower average costs as a business increases in size [OR] Reduction in average costs as a result of increasing the scale of operations

Effective communication means that information sent by a source is received and the recipient provides feedback/understood.

To achieve objectives in a cost-effective manner using minimum resources possible.

A person who takes the risk for a new business venture [OR] An individual who takes the financial risk of starting and managing a new business.

An organisation that takes decisions based on a moral code [OR] The moral judgements that a business makes about their behaviour, and the way they operate and interact with their stakeholders.

Value or price of one currency in terms of another currency [OR] The rate at which one country’s currency can be exchanged for that of another.

Costs paid for by the rest of society, other than the business, as a result of business activity [OR] The negative impact of a business decision on society [OR] Costs that fall on third parties that are not directly involved in the production process.

Third party effects arising from production or consumption of goods and services for which no appropriate compensation is paid [OR] Advantages or disadvantages that fall on third parties that are not directly involved in the production process [OR] The effect of business activities on unrelated parties.

It is a response from a receiver to a source to indicate that a message has been received and understood.

Monetary benefit achieved by the business [OR] Profit that the business makes.

Extra money for performance that is in excess of target and above basic pay.

A financial budget is a numerical or quantitative plan showing future financial targets, goals or limitations for a specific time period.

Costs that do not change with the level of output or sales [OR] Costs that do not vary in the short run with the number of items sold or produced

Where large quantities of a product are produced in a continuous process [OR] The production of very large quantities of identical goods using a continuously moving process.

Customers or people who have similar characteristics to the target market who give their opinions on a product [OR] Selection of people who have similar characteristics to target market and who give their opinions on a product.

An agreement that allows one business to trade under the name of another business to sell the other company’s products or services [OR] A business based upon the use of the brand names, promotional logos and trading methods of an existing successful business. The franchisee buys the licence to operate this business from the franchisor [OR] A business system where entrepreneurs buy the right to use the name, logo and product of an existing business.

A global business is one that operates worldwide in terms of markets, employment, contacts, stakeholders and distribution [OR] A business that operates in many countries around the world in addition to its home country.

Increase in worldwide trade and movement of people and capital between countries [OR] The process by which countries are connected with each other because of the trade of goods and services [OR] The growth in worldwide trade [OR] Freer movement of people and capital between countries [OR] The process of countries becoming more interconnected.

The total value of output of goods and services produced in a country in one year or at a given point in time.

It implies that workers have a positive work attitude [OR] It is reflected by job satisfaction, enjoyment and enthusiasm of the employee.

It is a manager in charge of the people side of a business. This would include recruitment, development and utilisation of the human resources.

Limit on the number of goods allowed into a country [OR]

It refers to a limit on the flow of goods that are allowed into a country

Tax on goods brought into a country [OR] Tax charged on imported goods

A financial document that records the revenue, costs and profit for a given period of time.

Introduction given to new employees explaining the businesses activities, customs and procedures and introducing them to other workers [OR] A training programme to help new recruits become familiar with their workplace, the people they work with and the procedures they need to follow.

Input output ratio is low or not maximising productivity.

It refers to the increase in general prices over a period of time. [OR] It implies that prices are at an increasing rate or increasing rapidly.

Messages between employees working in the same organisation

The amount of raw materials, work in progress, and finished goods stored by a business which intended to be sold later.

It outlines the responsibilities and duties expected to be done by someone employed to do a specific job.

Involves adding tasks to the job that require higher skill or more responsibility

Where a single product is made at a time [OR] Makes one product from start to finish before starting the next one [OR] Producing a personalised product individually.

Employees swapping around and doing each specific task for only a limited time [OR] Process of switching an employee between jobs over a period of time [OR] Increasing variety in the workplace by allowing workers to switch from one task to another.

When two or more businesses agree to start a new project together and share risks, capital, profits or resources.

It implies that labour resource input is the key resource used in the business rather than capital equipment [OR] It also implies that labour costs are the dominant cost of the business.

A level of authority in a business structure [OR] Managers, supervisors or other employees who are given a similar level of responsibility in an organisation

A business which has a separate legal identity or status to its owners [OR] A business with a limited liability for owners

Liability of shareholders in a company is only limited to the amount they invested [OR] Shareholders only risk losing the amount they have invested in the company and not any of their personal wealth.

Ability of a business to pay back its short-term or day to day debts [OR] ability of a business to pay its current liabilities using its current assets [OR] A measure of how quickly a business can turn current assets into cash to pay short term debts.

It is a product sold below cost price in order to encourage customers to buy other products sold by the business.

It means that the profit per unit of sales revenue is small.

Managing director is the overall senior director with general responsibility for the business as a whole.

Difference between current level of output and break-even output. [OR] Difference between current level of sales and break-even sales.

An economy in which the Government has no or very less control over the factors of production [OR] An economy which allows markets to decide the allocation of resources.

Business with largest percentage of total sales revenue and share of the market [OR] Business with the biggest share of market for a product.

A business that focuses on the needs and requirements of its customers through analysis of market research data. [OR] A company that does market research before manufacturing or supplying a product.

Process of gathering, analysing and interpreting information about the market [OR] Process of collecting, recording and analysing data about customers, competitors and market for a product.

An identifiable sub-group of a whole market in which consumers have similar characteristics or preferences.

Dividing the whole market into segments by consumer characteristics and then targeting different products to each segment [OR] Identifying a subgroup of a whole market in which consumers have similar characteristics or preferences.

Percentage or proportion of the total market sales made by one brand or business [OR] = Business sales / Total market sales × 100

Identifying and anticipating customer wants and then providing it.

A financial plan for the marketing of a product or product range for a specified period of time [OR] The amount of money made available by a business for its marketing activities during a particular period of time.

All activities that go into the marketing of a product. These activities are often summarised as the four P’s which are product, promotion, place and price. [OR] Four marketing decisions (Product, Price, Place and Promotion) needed for the effective marketing of a product [OR] The combination of product, price, promotion and place that determines how a firm markets itself to its customers and potential customers. [OR] Blend of product, price, promotion, and place, designed to attract customers.

Plan to use the right combination of the marketing mix to achieve a particular marketing objective [OR] A plan of action designed to promote and sell a product or service to achieve a set goal [OR] A plan for promoting products to enter a new market.

Selling the same product to the whole market.

Small amounts of capital loaned to entrepreneurs in countries where finance is difficult to obtain [OR] Small loans to people not traditionally served by banks [OR] Loan to poor people not traditionally served by banks.

An economy that has both a private and public sector [OR] An economy where businesses are owned and run by both the state and individuals [OR] An economy where resources are allocated by both individuals and the government.

Reason or factor why employees want to work hard and work effectively for the business [OR] Desire to work hard and feel satisfied by doing so.

A business with factories, production, or service operations in more than one country [OR] A business with production or service operation in another country outside its normal area of operation.

Difference between the cash inflows and cash outflows [OR] = Cash Inflows - Cash Outflows

It is the total amount of money that business makes once all costs have been subtracted from sales revenue [OR] = Total revenue – total cost

It is a measure of the profitability of sales. It calculates the proportion of sales value that is represented by profit. [OR] = Net Profit/Sales × 100

A small specialised segment of a much larger market [OR] It Involves selling goods to small clearly identifiable segments of a market [OR] A highly specialised subpart of a larger market.

Resources owned by a business which will be used for a period longer than one year [OR] Items owned by a business for more than one year.

Debts of a business which will be payable after more than 1 year [OR] items owed by the business for more than one year.

Training that takes place away from the workplace usually by a specialist trainer or trainers [OR] Training that takes place away from the workplace, for example at college, university or a specialist training providers premises [OR] Training that takes place away from the place of work using methods such as courses/conferences/online learning.

It implies that a message from sender to receiver requires no feedback or response.

Training at the place of work, watching or following an experienced employee [OR] Training at the place of work where usually the person does the actual job while an experienced employee observes and guides him or her, making corrections as required.

Amount of cash held by a business at the start of the month or year

Next best alternative forgone [OR] The next best alternative given up by choosing another item [OR] The benefit that could have been gained from an alternative use of the same resource [OR] A benefit, profit or value that a firm has to give up in order to achieve something else.

Refers to the levels of management and division of responsibility within an organisation [OR] The formal internal framework of a business that shows how it is managed and organised [OR] The number of levels of management and division of responsibility and authority within a business.

Two or more people who agree to jointly own a business together [OR] An unincorporated business that has more than one owner.

Price is set lower than competitor’s prices in order to be able to enter a new market or launch a new product.

Pay is based upon some assessment of how well an individual is carrying out their job tasks. It is a form of payment by results.

Payment system where workers are paid depending on the quantity of products they have produced [OR] Employees are paid per unit of output and not by per hour.

Groups of people who act together to try to force businesses or governments to adopt certain policies [OR] Organisation of like-minded people who put pressure on businesses and the government to change their policies to reach a predetermined objective [OR] A group that campaigns on a range of social causes and tries to influence business behaviour.

Change in demand is greater than change in price [OR] Percentage change in product demanded is greater than the percentage change in price of the product.

Collection of new data about potential and existing customers.

Firms whose business activity involves the extraction of raw materials [OR] Businesses that extract the natural resources or produce raw materials that are then used by other businesses [OR] Businesses involved in extraction or production of raw materials.

A business owned by shareholders, but they cannot sell shares to the public. [OR] A business owned by shareholders, but they can only sell shares to friends or family. [OR] A small to medium-sized business owned by shareholders who have limited liability.

When business activities are owned by individuals or groups of individuals.

It refers to the changes in the level or pattern of sales of a product over time.

Business that focuses on making the product first and then tries to find customers to buy it.

A measure of the output of a business in relation to its inputs [OR] Effective utilisation of resources in a time period [OR] = Output divided by Input.

A business that is owned and controlled by the government.

Businesses owned by shareholders, and they can sell shares to the public using the stock exchange [OR] A large company, owned by shareholders who have limited liability. The company can sell its shares to the general public [OR] A company that sells its shares to the general public through a stock exchange

Part of the economy controlled by the government.

Checking for quality standards throughout the production process.

Checking that a product meets the required standard [OR] Checking of goods at the end of the production process [OR] Checking the standard of goods through inspection.

When there is a period of falling gross domestic product / GDP [OR] A sustained reduction in GDP for an economy.

When an employee is no longer needed because the job no longer exists

Net profit reinvested back into business after tax and dividends.

Profit as a percentage of capital employed [OR] = (Profit/Capital employed) x 100 [OR] Profit made on each dollar invested in the business.

Money coming in from selling a product over a given period of time [OR] Amount of money a business earns from the sale of its products [OR] Income of the business from the sale of goods or services [OR] = Selling Price x Quantity sold.

Gathering information that has already been collected by others and is available for use by others [OR] The collection of data from second hand sources such as the Internet, government agencies and other businesses.

Firms that process and manufacture goods from natural resources [OR] Manufacture goods using the raw materials provided by the primary sector [OR] Uses manufacturing to transform the raw materials generated in the primary sector into a product.

Shareholders are the owners of a limited company.

Total sum of money invested into the business by the owners of the company [OR] = Share capital plus reserves [OR] = Total assets - Total liabilities [OR] Value of equity capital plus reserves.

Business with both social objectives as well as aim to make a profit [OR] Organisation whose main objective is social welfare and any profit made is reinvested back into the business.

Unincorporated business owned and controlled by only one person [OR] Ownership of business in the hands of one person.

Number of subordinates working directly under an individual or manager [OR] Number of subordinates reporting to each supervisor or manager.

When people and businesses concentrate on what they are best at [OR] Way in which work is divided so each worker concentrates on a specific task and become an expert at it.

Any individual or group which has a direct interest in a business because they are affected by its activities or decisions [OR] Any group or person with a direct interest in the performance / activities of a business [OR] A person who affects the business or is affected by the business.

It shows the value of a business’ assets and liabilities at a particular point in time [OR] An accounting statement that records assets, liabilities, and owners’ equity of a business at a particular date.

A development which does not put the living standards of future generations at risk [OR] Ability to meet the needs of the present population without compromising the ability of future generations to meet their own needs.

Specific group or segment of customers that the product is directed at.

Business or industry which provides or sells services to consumers

It is a stage when the sales of a product are at its peak.

Worker are paid per hour instead of a fixed salary [OR] Receive a set amount of pay for every hour worked

Fixed costs and variable costs combined [OR] All the variable and fixed costs of producing the total output [OR] = Total Fixed costs + Total Variable costs

Amount of money owed by customers for goods bought on credit terms.

Group of workers who join together to ensure their interests are protected [OR] Organisation that represents the workers and fights for improvements to pay and conditions.

When people want to work but cannot find a job [OR] The proportion or percentage of the population that are capable of working but are unable to find a job.

Costs that change with the level of output produced or sales made [OR] Costs which vary directly with the number of items sold or produced [2] Costs that change in direct proportion to output.

A business that buys and stores large quantities of several producers’ goods and then breaks into bulk deliveries to supply retailers with smaller quantities.

Amount of capital available to a business to pay its day-to-day expenses [OR] The capital needed to finance the day to day running expenses and pay the short-term debts of the business [OR] = Current assets – Current liabilities