Business studies key terms, topic 3

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Profit
What is left after expenses have been deducted from revenue. Profit= sales revenue-total cost
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Gross profit
Gross profit= sales revenue- cost of sales
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Net profit
Net profit= gross profit- expenses
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Cash flow [forecast]
The movement of cash into [cash inflow] and the movement of cash out [cash outflow] of a business, which gives a forecast for the future.
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Income
A governemnt's income on an individual's income.
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Expenditure
The amount of money spent.
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Balance carried foward
Previous balance on an amount, which is carried over to the next billing period.
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Perfect competition
A market structure where competition is at it's greatest level.
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Monopoly
Where a business controls more than 25% of the total supplies of a particular product or service.
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Market share
The percentage of all the sales ithin a market that are held by one company. Market share= value of product sales/value of market sales x100%
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Business ethics
What is morally right and wrong in a buisiness
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Co-operative business
The type of business organisation, which is owned by it's members, who share the profits [supermarket chain].
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Fair trade
a way of buying and selling products that makes sure that the people that produced the products get a fair price.
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Environmental issues
Issues in a business to do with the environment such as carbon emissions and global warming
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Social cost
Measures to protect workers from unfair working practices.
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Global warming
The rise in average temperatures that scientists say is taking place.
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Sustainability
Production that involves the use of renewable resources [eg, the sun and wind] and recycled resources. It minimises waste and the use of energy.
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Pollution permits
Polluters can bid for a permit that allows them to make a certain amount of pollution.
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Recycling
When resourecs are reused to produce something.
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Trade/business cycle
The way an economy moves from boom to slump in a regular manner over a fixed period of time. Boom, recession, slump, recovery.
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Interest cost
This is the cost of borrowing money- currently charged at 15%.
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Government spending
The money spent in an economy over a period of time on a range of goods and services, such as education. It is financed by taxation.
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Taxation
The way the government raises money to pay for services, such as health care. Can be direct or indirect.
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Globalisation
The process by which business activities in different countries are becoming more and more connected to each other.
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Exchange rates
The amount of one currency that another currency can buy.
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Eurozone
A name given to the countries in the EU which use the euro.
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Exports
Selling a product or service to a business overseas.
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Inports
The purchases of products or services from overseas.
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Outsourcing
Obtain goods or services from an outside supplier.
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Immigration
The action of coming to live permanently in a foreign country.
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EU
The collection of 27 countries in Europe which trade together and aim for closer co-operation.
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Other cards in this set

Card 2

Front

Gross profit= sales revenue- cost of sales

Back

Gross profit

Card 3

Front

Net profit= gross profit- expenses

Back

Preview of the back of card 3

Card 4

Front

The movement of cash into [cash inflow] and the movement of cash out [cash outflow] of a business, which gives a forecast for the future.

Back

Preview of the back of card 4

Card 5

Front

A governemnt's income on an individual's income.

Back

Preview of the back of card 5
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