Business studies - theme 2 - definitions - Flashcards in A Level and IB Business Studies

1. Involves organising workers into small groups or cells that can produce a range of different products more quickly than job production allows. (4, 10)
2. Items the business owns that are in the form of cash or can be easily turned into cash quickly without a major loss in their value. The three current assets are cash, money owed by customers (receivables/debtors) and stock. (7, 6)
5. Involves making one-off items to suit each customer's individual requirements. (3, 10)
7. The amount charged by a lender per year for borrowing money. This is expressed as a percentage of the amount of money outstanding. (4, 2, 8)
8. A market dominated by just a few major suppliers. (2, 9)
9. A single business that dominates supply in a given market. (1, 8)
10. Continuous production of a single, standardised product. (4, 10)

2. Something of value that is used as security when a loan is offered. In the event of a business being unable to pay the loan back, the asset is transferred to the bank and sold in order to generate the money due for repayment. (10)
3. The minimum amount of stock that a business aims to always have available. (6, 5)
6. The ability of a business to find the cash it needs to pay its bills. The cash must be readily available either in the bank account or in the form of a payment from a customer that is due very soon. (9)

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