AQA A2 Business BUSS3 Key Words

Key words for those sitting the BUSS3 Business Exam (unit 3). covers all chapters for the exam

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  • Created on: 27-04-11 22:30
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BUSS3 ­ Key Words
Functional Objectives & Strategies
Aims / goals General statements of what a business intends to achieve.
Precise details of those intentions are set out in objectives
Business unit How a business attempts to compete successfully in a particular
strategy market
Corporate Objectives that relate to the business as a whole. Usually set by
objectives top management.
Corporate strategy Concerned with the overall purpose and scope of the business
Cost leadership A business strategy concerned with aiming to be the lowest-cost
producer in an industry. Usually requires exploitation of
economies of scale
Functional Set for each major business function ­ designed to ensure that
objectives the corporate objectives are met
Shareholder value Where shareholders earn a return from their investment which is
greater than their required rate of return
SWOT analysis Assessment of the internal strengths and weaknesses of a
business and the external opportunities and threats that the
business needs to consider
Targets Similar to objectives. Targets are often set at an individual or
team level

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BUSS3 ­ Key Words
Financial Strategies and Accounts
Acid-test ratio A liquidity ratio that looks at whether a business can pay for current
liabilities out of cash and near-cash assets (it ignores the value of stocks)
Asset turnover A ratio that calculates the relationship between revenues and the total
assets employed in a business
Average rate of return A measure of the total accounting return from an investment project
Capital expenditure Expenditure on assets which are intended to be kept in the business (e.g.…read more

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BUSS3 ­ Key Words
Payback period The time it takes for a project to repay its initial investment
Profit centres A separately-identifiable part of a business for which it is possible to
identify revenues and costs and calculate a relevant profit
Profit quality The sustainability of profit from one period to the next.…read more

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BUSS3 ­ Key Words
Marketing Strategies
Ansoff's Matrix A strategic model for helping a business analyse the relationship
between general strategic direction and suitable marketing
Average A term for various measures of central tendency, including the
mean, mode and median
Competitive Skills, competences, resources and other advantages that enable a
advantage business to out-perform its competition
Customer The process of building a long-term, profitable relationship between
relationship a business and its customers
management (CRM)
Diversification The relatively risky strategy of trying to enter new…read more

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BUSS3 ­ Key Words
Operational Strategies
Capital intensity The extent to which production or operations depend on investment in and
use of capital ­ i.e.…read more

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BUSS3 ­ Key Words
Human Resource Strategies
Arbitration An alternative to a court of law in determining legal and employment
disputes.…read more


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