Business Studies (0450) Ultimate Quiz 2 Flashcards

marketing communications using mass advertising media.

a person who specializes in keeping and inspecting financial records and preparing financial statements.

the 12-month period for which a business prepares its income statement.

a balance sheet term for debtors. It is the total amount of money owed to the business by customers who have purchased items on credit terms payable within the next 12 months.

a balance sheet term for creditors. It is the total amount of money owed by the business to suppliers who have sold items on credit terms that it must repay within the next 12 months.

current assets less inventories expressed as a ratio of current liabilities.

firms that supply business support services to other organizations, such as transportation, marketing and equipment maintenance services.

a rise in the value or market price of a national currency against another currency or currencies.

a process involving the judgement of an independent person or body to help resolve industrial disputes between workers and employers.

telling employees what to do without consultation.

the cost of producing each unit of output.

a record of all the financial transactions between a country and all the other countries with which it trades.

a statement recording the value of assets, liabilities and capital of a business on a given date.

a term used for a business that is declared in law as unable to pay its debt.

production of a limited number of identical products to meet a specific requirement or customer order. Each new batch may be slightly different from the last one produced.

marketing promotions that do not use mass media. Also known as Sales promotions.

a name used to identify and distinguish specific goods, services or businesses from others.

the process of creating distinctive and durable perceptions of a product in the minds of consumers.

using cost and revenue data to calculate the break-even level of output.

the minimum level of output a business will need to produce and sell to cover its costs.

rules governing how buildings, including factories, shops and offices, should be constructed.

recurrent periods of recession, recovery and boom in business activity and economic growth in a national economy.

a goal or aim the owners, managers and employees in a business work towards.

people and organizations with a direct or indirect interest in business activities and performance.

a written statement about a business idea: how it will be organized, what the owners want to achieve and how they will do so.

an objective expressed as a value or volume to achieve by a given date.

long-term capital from non-current liabilities and shareholders’ funds invested in a business (therefore also equal to total assets – current liabilities).

money spent on the purchase or acquisition of non-current assets such as premises and machinery.

a firm or production process that requires more capital equipment than labour.

the continuous flow of cash into and out of a business over time.

a projection of anticipated monthly cash inflows and outflows to estimate future cash requirements.

cash received by a business.

cash paid out by a business.

a holding of cash over and above what is needed to meet immediate payments. The reserve is held on the business premises or in an easy-access bank account.

notes and coins available for immediate payment.

an organization in which authority, responsibility and decision-making is concentrated at the top of the chain of command.

the line of management authority in a hierarchical organization.

trade union membership in a firm is made a compulsory condition of employment within that firm.

assets of value that a customer can offer as security against a loan. If the customer is unable to repay the loan the lender can sell off the assets instead.

negotiation between organized workers, usually through a trade union, and their employer or employers to agree wages and working conditions.

obstacles and problems that prevent effective communication.

a failure to communicate accurately and effectively.

rivalry between businesses trying to win consumers’ acceptance, sales and loyalty.

when a job is cut and the employee is forced to leave employment in return for monetary compensation.

the use of computer systems to create, modify and optimize the design of a product.

the use of computers to control and monitor the use of machinery and equipment in a manufacturing process.

legal controls on businesses designed to protect consumers from misleading or inaccurate marketing claims, unfair trading practices and the production and sale of damaged, faulty or dangerous goods and services.

people and organizations who are willing and able to buy goods and services.

the using up of goods and services to satisfy consumer needs and wants.

a market in which consumer demand and sales revenues are falling over time; there is a downward trend in sales.

the cost of the items sold, for example the cost of purchasing the goods from suppliers or the variable costs of the materials and labour used to produce the goods or to provide the services sold.

adding a mark-up for profit over the average cost of producing a product.

people, suppliers and other organizations to whom a business owes money.

cash, inventories and accounts receivable. They will be used up by a business within the next 12 months to make payments.

accounts receivable, bank overdrafts and any other amounts owed by a business to other people or organizations that will fall due for payment within the next 12 months.

the value of current assets expressed as a ratio of the value of current liabilities.

consumers who buy goods or services from business organizations.

a loan certificate issued for sale by a company that can be bought and resold by investors. The final holder of the certificate at maturity is repaid in full plus interest.

repayable long-term loans.

a customer that owes a business money for goods and services it purchased on trade credit.

an organization in which a lot of authority, responsibility and decision-making is delegated to lower levels of management.

failure to repay debt finance.

assigning tasks to other employees in a chain of command.

the time lag between placing an order for a product and its delivery.

subdivision of a business organization that specializes in performing a particular job or function.

a fall in the value or market price of a national currency against another currency or currencies.

cutting price, sometimes below costs, to force a rival out of business.

a country with a wide range of industries and a large tertiary sector.

a country that is seeking to develop its resources, create jobs and increase incomes and living standards through industrialization.

the decline of manufacturing and the growth of services in developed economies.

consulting employees before making decisions.

a business strategy that involves producing a variety of different products and/or expanding into different markets to expand total sales and reduce the risk to the business from a fall in demand for any one product or in any one market.

costs that can be attributed to a specific activity or the production of a particular product.

formal rules and actions followed in an organization when an employee breaches his or her contract of employment.

rising average costs due to a business being too big to operate efficiently.

terminating the employment of an employee.

the unequal treatment of job applicants or employees because of differences in their race, religion, sex, disability, age or other characteristics.

personal income that is available to spend or save after the deduction of personal income or payroll taxes.

new products, materials or processes that completely change the way businesses produce and operate or completely change what consumers want and buy.

profit after tax paid out to the business owners or as dividends to company shareholders.

the people and organizations involved in the physical movement and the transfer of goods and services from producers to consumers.

the dividing up of a production process into a number of sequential tasks, with each one completed by a different worker or group of employees.

reducing the size of the workforce in an organization.

exporting cheap, subsidized goods to another country to force its firms out of business.

promoting, buying and selling goods and services using electronic systems connected to the Internet. This can be business to business (B2B) or business to consumer (B2C).

a period during which business activity, output and prices increase rapidly.

an increase in the total output or GDP of a national economy.

a period of declining business activity, falling output, employment and incomes.

a fall in the average cost of producing each unit due to an increase in the scale of production.

rewarding employees with shares in the ownership of the company they work for.

a formal legal agreement between an employer and an employee that details the workplace duties and responsibilities the employee will perform in return for an agreed wage or salary.

legislation that governs the rights and responsibilities of employees and their employers.

(or industrial tribunal) a court of law that determines a dispute over employment rights between an employer and an employee.

business know-how, skills and qualities including the willingness to take considered financial and other business risks.

a person with the know-how and willingness to take the risks and decisions necessary to set up and run a business.

an enterprising person who is willing and able to take the risks and decisions necessary to organize resources to produce goods and services.

the process of identifying a business opportunity, organizing the resources needed to start and run a business and taking both the risks and the rewards it involves.

businesses that take account of the impact their decisions and actions can have on other people and organizations, communities and the natural environment.

permanent capital raised by a company from the sale of its shares.

the market price or value of a national currency in terms of another currency.

a market in which consumer demand and sales revenues are rising over time; there is an upward trend in sales.

goods and services sold overseas. Their sale involves the receipt of revenues from consumers in other countries.

marketing methods used to extend sales and the profitable life of a mature product.

a benefit created by a business activity that is enjoyed by people or organizations without them having to pay for it.

sending or receiving information and messages to or from individuals or organizations outside of a business.

a cost imposed by a business activity on other people or organizations.

an increase in the size of a firm through the takeover of, or merger with, other enterprises.

cost advantages arising from locating near to other similar businesses. This is because areas where similar businesses cluster together attract ancillary firms.

attracting job applicants from outside an organization to fill job vacancies.

money raised from organizations and individuals that are not part of the business.

replacing one factor of production with another in a production process. For example, advanced capital equipment has replaced labour in many modern production processes.

productive resources used to make goods and services.

organizations that produce goods and services.

the income statement and balance sheet a business will produce at the end of its accounting year.

money invested in non-current assets with long productive lives, including premises, machinery and vehicles.

costs that do not vary with output (also known as overheads).

an organization with a short chain of command and in which managers have a relatively wide span of control.

when shares in a public limited company are made available for sale to the general public for the first time through a stock exchange.

mass production of a large number of identical items in a continuous, usually automated, process.

industries that have no need to locate near their markets or sources of materials.

direct investment in productive assets in a country by an individual or business of another country, either by buying an established company or by expanding the operations of an existing business in that country.

the global market for buying and selling national currencies. The market determines the price or rate at which one currency can be exchanged for another national currency.

an agreement by one company with another business organization to permit the distribution of its goods or services using its trademark or brand name.

non-financial rewards or “perks”.

a job that usually requires 35 or more hours of work each week.

the proportion of total capital invested by a business in assets that has been financed by debt.

a partner with unlimited liability.

increasing trade, interconnections and interactions between people, firms and governments in different national economies.

a business that has sufficient financial and other resources to continue operating indefinitely. A business that is no longer a going concern is a business that is bankrupt.

a non-repayable sum of money given by a local, state or central government to another person or organization for a particular purpose; for example, to fund business start-up including the purchase of equipment and/or training.

the value of the total annual output of a national economy.

revenue from sales less the cost of the items sold.

gross profit as a percentage of revenue.

legal controls designed to set minimum standards of safety and cleanliness to reduce the risk of injury and ill health resulting from working.

the layers of management and command in an organization.

a term used to describe a business that has far more debt finance than equity finance.

paying for a non-current asset in instalments. The supplier continues to own the asset until it has received payment in full.

messages and information passed between different departments in an organization.

the formation of a larger enterprise through merger or takeover between two or more firms in the same industry and at the same stage of production.

term used to describe a business that has insufficient cash or other current assets it can convert quickly and easily to cash.

goods and services purchased from countries overseas. Their purchase involves making payments to producers in other countries.

an indirect tax added to the prices of imported goods to reduce consumer demand for them.

a business organization with a separate legal identity from its owners.

a financial statement used to record and report the income, expenses, profit or loss of a business.

the inability of a business to pay its debts because it has run out of cash.

or organic growth, involves an increase in the scale of production within a firm through the employment of additional factors of production.

how the prices of items traded internationally compare. For example, an increase in the prices of imported goods will make them relatively less competitive than the same goods produced by domestic firms in the importing country.

when a group of people is disadvantaged by their sex, race, religion or other characteristics because they fail to meet an unjustified requirement for a job.

teaching new employees about the organization they work for.

organized disruptive actions, such as a strike or work to rule, that workers may take to increase their bargaining power over wage or other demands or to address their grievances.

a group of firms specializing in similar products or using similar production processes.

the relative size and importance of industrial sectors in an economy.

a sustained rise in the average level of prices in a national economy.

advertising that provides factual information about goods, services or organizations.

inability to pay short-term debts.

messages and information passed between people within an organization.

filling a job vacancy from the existing workforce within an organization.

capital that a business can raise from its own resources.

the exchange of goods, services and money across national borders.

the shared global computing network that enables electronic communications between all connected computing devices.

stocks of materials, work-in-progress and finished goods stored by a business to ensure uninterrupted production and to meet peaks in consumer demand.

identifying a job vacancy and the tasks and responsibilities of that job.

a document describing the tasks and responsibilities required to do a job.

adding tasks to a job without increasing responsibility.

increasing the degree of challenge in a job by adding tasks that require more skill and responsibility.

the production of a single item or items made to order, usually involving labour intensive techniques.

enabling employees within a team to swap tasks with each other.

how content an employee is with his or her job.

a contractual agreement between two or more organizations to share the expertise, investment, management, costs, profits and risks of forming a new business. The new business may produce and sell an existing product to a new market or develop an entirely new product.

limited companies or corporations – are jointly owned by their shareholders.

keeping inventories of materials and work-in-progress to a minimum by taking delivery of new parts and materials only when they are needed for production.

the continuous improvement of production processes to remove waste and increase efficiency.

a firm or production process that uses more labour than capital equipment.

average output or revenue per employee.

allowing employees the freedom to organize their work and make their own decisions about how best to achieve business objectives.

or conglomerate merger, involves merger or takeover between two or more firms in different industries to form a single, larger enterprise.

improving efficiency and eliminating waste in a production process so that products can be made better, cheaper and faster.

renting the use of a non-current asset, usually with the option to buy it at a later date.

dividing up consumers into groups according to their hobbies, interests and opinions.

the minimum amount of money workers must be paid for their employment per period of time.

the legal responsibility of the owners of a business to repay its debts is limited to the amount of capital they invest in the business.

a partner with limited liability.

a measure of the ability of a business to raise cash from its current assets to meet its immediate and short-term debts.

a legal procedure to close a bankrupt business involving the sale of its remaining assets to pay off its debts.

an asset, such as money held in a bank account, that is easily converted into cash.

not having enough liquid assets to convert to cash quickly.

or solvency ratios, measure the ability of a business to settle its current liabilities from its cash and other current assets

the science of moving things, including managing inventories, transportation and distribution systems.

funds available to a business over many years, usually for investments in Non-current assets.

the roles and responsibilities of managers, including planning, organizing, coordinating, commanding and controlling how labour and other resources are used in an organization.

the organization and co-ordination of people and activities in order to achieve agreed aims and objectives.

the most senior manager in a company (also called the chief executive officer or CEO in some companies).

the process of converting natural resources into other products.

features or characteristics of a given market, including the degree of competition between producers and the numbers, types and spending levels of different groups of consumers.

targeting promotion and sales of a new or existing product at a group of consumers, often overseas, that has not previously been targeted by the producer.

the firm with the largest share of a market or market segment measured by its share of the total number of units sold or total value of sales per period.

the collection and analysis of data about consumers’ preferences, spending patterns and other market conditions.

an identifiable group of individual or business consumers sharing similar characteristics or preferences.

grouping together consumers who have similar characteristics, preferences and buying habits.

the proportion of total sales of a product achieved by one firm.

all the producers and consumers of a given product.

a business that focuses on identifying consumer needs and wants using market research.

a financial plan for the marketing of a product.

the combined elements of a marketing strategy focused on the design, price, promotion and place of sale of a product.

the total sales revenue or turnover for a particular product over a given period of time.

a plan detailing the marketing objectives of a business and the actions and resources needed to achieve them.

the anticipation, identification, creation and satisfaction of consumer needs and wants.

combining two or more firms with the agreement of the owners to form a larger enterprise.

small loans and other financial services provided by specialist organizations to people who are poor and unable to use traditional banks.

a brief written statement of the purpose and objectives of a business organization.

an economy that combines private sector and public sector ownership of resources and provision of goods and services.

a long-term loan to buy property.

a desire to work hard and the satisfaction obtained from doing so.

ideas about what motivates people at work.

training employees in a variety of skills so they are more flexible in the work they can do.

a company or corporation with business operations in more than one country.

total cash inflows less total cash outflows per period.

the take-home pay of an employee after any payroll and income taxes, pension contributions and/or trade union subscriptions have been deducted from gross earnings.

detrimental impacts on other people or organizations resulting from the actions of another.

a marketing strategy aimed at a small, specialized market.

a small part or segment of a large market consisting of consumers with specialized tastes or preferences.

(or fixed assets) are long-lived assets, including machinery and equipment. They remain productive for more than one year.

(long-term liabilities or loan capital) are loans and other amounts owed by a business to other people or organizations that will fall due for payment after one year.

rivalry between businesses over different features of their products, such as quality, image and packaging, and their customer services, after-sales care and advertisements.

natural resources that cannot be replaced or reproduced once they have been used up.

training employees away from their normal workplace.

training employees while they carry out their normal duties.

can be read or listened to by anyone.

a country that trades freely with other countries.

the benefit lost by not consuming or producing the next best alternative product.

a diagram of an organizational structure.

how roles, responsibilities and management authority are allocated within an organization.

or indirect costs, are the day-to-day running costs of an organization.

or holding excess inventory, means a business has purchased and stored far more goods than necessary or desirable.

this happens when a business expands too quickly and takes on more work than it is able to finance and complete.

a legal agreement between two or more people, usually up to 20, to jointly own, finance and run a business, and to share its profits.

setting price low at product launch to encourage sales and consumer acceptance of the new product.

measures of how well a business is using its assets to earn profits.

financial rewards given to an employee or group of employees in recognition of high achievement and productivity.

the non-repayable capital of a company, equal to the total of shareholder’s funds invested in that company.

or job specification, is a document listing the skills, qualifications, experience and personal qualities a person needs to do a specific job.

face-to-face marketing communications with a customer.

advertising designed to influence consumer preferences, encourage brand switching and increase sales.

basic human needs for food, clothing and shelter in order to survive.

a wage rate per unit of output produced by an employee.

laws and regulations that restrict the type and scale of development in certain areas to protect local residents and the natural environment.

promotions targeted at the customer at places where a product is displayed and sold.

a job that usually requires less than 35 hours of work each week.

a measure used by a government to achieve its economic objectives. They include public expenditures, taxes and interest rates.

beneficial impacts on people or businesses resulting from the actions of another.

exists when a business has sufficient money left over after it has paid its short term debts to continue paying its day-to-day running costs. That is, the cash and other liquid assets held by the business exceed its current liabilities.

an organization or group of people that aims to change the behaviour of a business that fails to act in a socially or environmentally responsible way through publicity and protest.

rivalry between similar businesses over the selling prices of their products.

when a small change in price causes a significant change in demand.

the responsiveness of consumer demand to a change in price.

when a change in price causes only a modest (small) change in demand.

setting the initial price high at product launch in order maximize profits in the short run when there is little or no competition.

intense price competition between rival businesses.

new data collection from “field research”.

industries that produce or extract natural resources.

the financial benefits (sales revenues and other incomes) of a business activity.

the financial (fixed and variable) costs of a business activity.

that part of an economy owned and operated by private individuals and privately owned businesses.

comparing rival products so that a firm is able to match or improve on them.

the profile of sales and profitability of a product over its commercial lifespan. It is characterized by a number of different stages starting with product development and launch and ending with maturity and eventual decline.

the range of different products produced and marketed by a business at any given point in time.

a business that focuses on production processes and products.

using resources to provide goods and services to satisfy consumer needs and wants.

using resources to make goods and services to satisfy consumer needs and wants.

a measure of the efficiency of use of resources in a business by comparing the volume or value of output with the resource inputs used in production.

profit remaining after corporation tax or tax on profits has been deducted.

choosing production methods, outputs and prices that will earn the business the greatest amount of profit possible from the resources it uses.

profit before tax as a percentage of revenue.

the difference between the selling price per unit and the average cost per unit.

rewarding employees with a percentage of the profits of the business organization they work for.

gross profit less all other expenses.

a surplus of revenue over costs of production.

the ability of a business to continually generate revenues that exceed its costs.

reducing the price of a product for a short period of time to boost sales, for example to sell off old and unwanted inventory.

using prices to influence consumer perceptions of a product.

a government-owned enterprise created to carry out a governmental function or public service.

actions to establish and maintain a good company and product image with the general public.

that part of an economy owned and controlled by government and government-owned organizations.

written or verbal information.

the setting and monitoring of quality standards across an organization and ensuring that they are met.

numerical information.

choosing consumers to interview according to pre-specified characteristics, such as age or gender.

a limit on the volume of imported goods allowed into a country.

producing a good or service that is fit for the purpose intended and meets customer expectations.

checking the quality of a good or service for any defects or errors at the end of its production process.

choosing consumers to interview or survey at random.

using accounting ratios to measure, monitor and compare the financial performance of a business over time and with other businesses.

the value of an income measured in terms of how much it willa buy. As prices rise, real income will therefore fall.

the process of attracting job applicants, for example using job advertisements.

government policy aimed at encouraging businesses to locate in underdeveloped areas within a country.

improving existing products and the discovery, testing and development of new products, materials or production processes, to gain a competitive advantage or to increase social welfare.

messages or information intended only to be received by an identified person or group of people.

a business organization specializing in the sale of products to consumers.

profit saved by a business for reinvestment that is not returned to the owners as dividends.

profit expressed as a percentage of the capital employed in a business.

proceeds from the sale of goods and services to customers.

taking apart competing products to discover their strengths and weaknesses and how they were made.

money spent on day-to-day running costs.

profit after tax that has not been distributed to owners but is instead held by the business for reinvestment.

choosing consumers to interview or survey who are not fully representative of those in the target population in terms of their characteristics, buying behaviour, tastes or opinions.

an Internet application or website that hunts for, gathers and reports information available on the Internet.

desk-based research using data from existing sources.

industries involved in processing natural resources, manufacturing or construction.

assessing the suitability of applicants for a job and choosing the most suitable candidate.

a business organization considered to be legally separate from its owners.

owners of limited companies or corporations.

the share capital and retained profits shareholders have invested in their company. Also called shareholders’ equity or the owners’ capital.

funds available to a business for up to a year or so, usually used to fund operating expenditures.

selecting the most promising candidates for a job from a set of job applications.

comparing and marking job applications against the requirements of a person specification.

an agreement between an employer and a trade union that the union can represent all workers in the organization.

the total benefit to society of a business activity: the sum of the private and external benefits of that activity.

the total cost to society of a business activity: the sum of the private and external costs of that activity.

a person who uses his or her business skills to set up and run organizations to maximize improvements in social and environmental well-being rather than profit.

a private sector organization with social or environmental objectives that reinvests surplus revenues it makes towards meeting these objectives rather than paying them as profits to its owners.

Internet applications that enable users to create and share content or to participate in social networking.

human desires to communicate and interact with other people.

a group of consumers with similar social, economic and/or educational status.

a business organization owned and controlled by one person.

the number of subordinate staff a manager supervises.

focusing production on a single or limited range of products in order to make the best use of scarce resources.

the global market for the purchase and sale of new or existing shares (or stocks) in public limited companies.

a company that is completely or partly owned by another company or corporation.

producing goods and services without depleting natural resources and harming the natural environment.

the acquisition of one firm by another with or without the agreement of its owners.

an organization with a long chain of command and in which managers have a relatively narrow span of control.

a group of consumers (or market segment) that a business will design its products and marketing strategies to appeal to.

dividing the workforce into small groups of employees and giving them the responsibility for planning and organizing their own areas of work.

the application of a new technology developed in one sector to the products and production processes of other industrial sectors.

service industries.

a limited field trial of a new product or promotion to test consumer reaction.

a wage rate per hour worked by an employee.

continuous improvement in products and every business process at every stage of production.

policy instruments (including import tariffs and quotas) used by a government to protect businesses and jobs in its national economy from global competition.

deferred payment terms offered by suppliers for goods and services they supply to a business.

an organization of employees who have joined together to negotiate improved pay and working conditions with their employers.

(or labour union) an association representing employees in a particular workplace or industry, the aim of which is to negotiate improved pay and working conditions with employers.

short-term finance provided by a supplier to a business customer. The customer will often have between 30 and 90 days in which to pay for each purchase from its supplier.

these involve direct feedback from the receiver to the sender of a message or information.

people who are willing and able to work but cannot find paid employment.

the owners of a business are legally responsible for the full amount of its debts.

the difference between the price of a product and the cost of the natural and man-made materials, components and resources used to make it.

costs that vary directly with output (also known as direct costs).

funding for business start-ups and small businesses with exceptional growth potential.

spoken messages.

messages and information passed up and down a chain of command.

the formation of a larger enterprise through merger or takeover between two or more firms at different stages of production of the same product.

when an employee chooses to leave employment in return for monetary compensation.

weekly or monthly payments in exchange for labour supplied to a particular occupation.

money available to a business (from its holdings of cash or other assets that can be sold off quickly for cash) to finance its day-to-day operations or running costs.

capital available to a business to pay its day-to-day running costs. It is calculated as current assets less current liabilities (or net current assets).

an intermediary that buys and stores products in bulk from producers and sells small quantities to retailers.

handwritten or electronically typed messages.

determining the right size, skills and composition of a workforce a business will require to fulfil its future needs and objectives.