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BUSS3 Key Terms

Corporate Objectives

A quantifiable statement of a business's goals which should include measurable targets
Functional Objectives

A quantifiable statement of a department's goals which should enable it to contribute to
the achievement of the business objective

Functional Strategy
The plan…

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Capital Expenditure
The purchase of assets that will remain in the business in the medium to long term,
accounted for in the business sheet

Cash-Flow Targets
A financial objective focused on maintaining a healthy cash balance
Cost Minimisation

The process by which businesses attempt to maximise profits by keeping…

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For example; marketing director or a finance director
Financial Strategy
The long term financial plan of action to achieve the financial objectives of the business
Gearing Ratio
The percentage of capital employed that comes from non-current liabilities
Gross Profit
Profit after cost of sales have been deducted
Gross Profit…

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Non-Current Assets

Items of value owned by the business that are likely to be kept for more than one year
Non-Current Liabilities

Debts that the business has more than one year to repay
Non-Executive Directors

A member of the board of directors who does not work for the business…

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Aiming to achieve a satisfactory level of profit

Shareholder Ratios
Ratios that help measure the value of the return received by shareholders

Shareholders' Returns
The financial rewards to a shareholder in return for their investment; this can include
dividends paid and increase share value

Sources of Finance

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Offering a new product in a new market

A prediction of a future based on an identified current trend

Market Analysis

A detailed examination of the features of a market size and sales used to predict future

Market Development
Finding new markets for existing products either by…

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To replicate all elements of a product launch including promotion, distribution and price,
to a geographic region or demographic group to judge the viability of the product in the
market before a full scale launch

A general direction in which something tends to move
E.g. sales are increasing…

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Diseconomies of Scale

The disadvantages experienced by a firm as a result of operating beyond optimum output,
leading to a rise in average costs

Earliest Start Time

The earliest time an activity can start in a project based upon the completion of a
preceding activity

Economies of Scale

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Latest Finish Time
The latest time an activity must be completed by to avoid any delay to the project

Lean Production

The adoption of techniques that help to reduce waste

A business with operations or production bases in more than one country

Multisite Locations

A business that operates…

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The scientific research and technological development of a new product or process

Resource Mix

The combination of capital and human resources utilised within a business to achieve the
required output


The ability to employ specialists and for staff to focus on one particular area or function



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