A2 Business Studies - Unit 1 - Definitions - Flashcards in A Level and IB Business Studies

1. This exists when members of the working population are willing and able to work, but are unable to find a job. (12)
4. An increase in the average price level of goods and services. It results in a fall in the value of money. (9)
5. Limits on the physical quantity or value of certain goods that may be imported. (6)
6. When a company buys over 50% of the shares of another company and becomes the controlling owner of it. It is often referred to as ‘acquisition’. (8)
7. Goods and services purchased from other countries. (7)
8. An agreement by shareholders and managers of two businesses to bring both firms together under a common board of directors with shareholders in both businesses owning shares in the newly merged business. (6)
10. Literally means that ‘the whole is greater than the sum parts’, so in integration it is often assumed that the new, larger business will be more successful than the two, formerly separate. (7)

2. Is concerned with decisions about government expenditure, tax rates and government borrowing, These operate largely through the government’s annual budget decisions. (6, 6)
3. 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. (3, 8, 5)
9. Theoretically a situation in which there is only one supplier, but this is very rare. A much more flexible and realistic definition is needed for government policy purposes and, in the UK, this is that one has control of at least 25% of the market. (8)

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