Glossary 9707 A level Business Studies

Glossary (A-B)

Taken from the list provided in the Student CD-Rom of Business studies A level Book 2nd edition

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  • Created by: zakir
  • Created on: 24-10-12 20:13
above-the-line promotion
a form of promotion that is undertaken by a business by paying for communication with consumers.
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absenteeism
measures the rate of workforce absence as a proportion of the employee total.
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accounts payable (creditors)
value of debts for goods bought on credit payable to suppliers. Also known as ‘trade payables’
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accounts receivable (debtors)
the value of payments to be received from customers who have bought goods on credit. Also known as ‘trade receivables’
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added value
the difference between the cost of purchasing raw materials and the price the finished goods are sold for.
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added value
the difference between the cost of purchasing raw materials and the price the finished goods are sold for.
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adverse variance
exists when the difference between the budgeted and actual figure leads to a lower than expected profit
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advertising
paid-for communication with consumers to inform and persuade, e.g. TV and cinema advertising.
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AIDA
this is a model that explains the successive stages a customers passes through in buying a product: Attention, Interest, Desire, Action
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Ansoff’s matrix
a model used to show the degree of risk associated with the four growth strategies of: market penetration, market development, product development and diversification.
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arbitration
resolving an industrial dispute by using an independent third party to judge and recommend an appropriate solution.
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arithmetic mean
calculated by totalling all the results and dividing by the number of results.
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Articles of Association
this document covers the internal workings and control of the business – for example, the names of directors and the procedures to be followed at meetings will be detailed.
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asset-led marketing
an approach to marketing that bases strategy on the firm’s existing strengths and assets instead of purely on what the customer wants.
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autocratic leadership
style of leadership that keeps al decision making at the centre of the organisation.
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average rate of return
measures the annual profitability of an investment as a percentage of the initial investment ARR (%) = nn al profit (net cash flow) initial c pital cost 100
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bad debt
unpaid customers’ bills that are now very unlikely to ever be paid.
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balance of payments (current account
this account records the value of trade in goods and services between one country and the rest of the world. A deficit means that the value of goods and services imported exceeds the value of goods and services exported
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balance sheet
an accounting statement that records the values of a business’s assets, liabilities and shareholders’ equity at one point in time.
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batch production
producing a limited number of identical products – each item in the batch passes through one stage of production before passing on to the next stage.
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below-the-line
promotion promotion that is not a directly paid-for means of communication, but based on short-term incentives to purchase.
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Boston Matrix
a management technique developed by the Boston Consulting Group for assessing the long-term viability of products and market sectors. It is a method of analysing the product portfolio of a business in terms of market share and market growth.
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brand
an identifying symbol, name, image or trademark that distinguishes a product from its competitors.
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branding
the strategy of differentiating products from those of competitors by creating an identifiable image and clear expectations about a product.
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break-even point of production
the level of output at which total costs equal total evenue.
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budget
a detailed financial plan for the future
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budget holder
individual responsible for the initial setting and achievement of a budget.
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buffer stocks
the minimum stocks that should be held to ensure that production could still take place should a delay in delivery occur or production rates increase
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business cycle
the regular swings in economic activity, measured by real GDP, that occur in most economies, varying from boom conditions (high demand and rapid growth) to recession when total national output declines.
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business investment
expenditure by businesses on capital equipment, new technology and research and development.
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business plan
a written document that describes a business, its objectives and its strategies, the market it is in and its financial forecasts
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business process outsourcing (BPO
a form of outsourcing that uses a third party to take responsibility for certain business functions, such as HR and finance.
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business process re-engineering
fundamentally rethinking and re-designing the processes of a business to achieve a dramatic improvement in performance.
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Other cards in this set

Card 2

Front

measures the rate of workforce absence as a proportion of the employee total.

Back

absenteeism

Card 3

Front

value of debts for goods bought on credit payable to suppliers. Also known as ‘trade payables’

Back

Preview of the back of card 3

Card 4

Front

the value of payments to be received from customers who have bought goods on credit. Also known as ‘trade receivables’

Back

Preview of the back of card 4

Card 5

Front

the difference between the cost of purchasing raw materials and the price the finished goods are sold for.

Back

Preview of the back of card 5
View more cards

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