Business Theme 3 0.0 / 5 ? Business StudiesAll TopicsA2/A-levelEdexcel Created by: LukeA13XCreated on: 05-01-18 17:00 Fixed Costs Costs that do not change as the number of sales change 1 of 47 Variable Costs Costs that change as the number of sales change 2 of 47 Working Capital The finance available for the day-to-day running of the business 3 of 47 Angel Investors people who invest before the business opens, risky as if it fails, the angel will lose everything 4 of 47 Collateral An asset used as security for a loan 5 of 47 Crowdfunding Obtaining finance from many small investors, usually through the internet 6 of 47 Public Limited Company A company with limited liability and that has shares available on the stock market 7 of 47 Venture Capital High risk investment in a small, dynamic business 8 of 47 Limited Liability Owners are not responsible for the debts of the business, no personal assets can be taken 9 of 47 Unlimited Liability Owners are liable for the debts of the business, can lose their personal assets 10 of 47 Cash Flow Forecast An estimate of future monthly cash inflows and outflows to find the net cash flow 11 of 47 Real Incomes Changes in household incomes after allowing for changes in prices 12 of 47 Sales Forecast A method of predicting future sales using statistical methods 13 of 47 Break Even The point at which the total sales of a business equal total costs 14 of 47 Margin of Safety The amount at current output exceeds the level of output neccessary to break-even 15 of 47 Adverse Variance A difference between budgeted and actual figures that damages the firms profit 16 of 47 Favorable Variance A difference between budgeted and actual figures that boosts the firms profit 17 of 47 Zero Budgeting Setting all future budgets to £0 and forcing managers to justify spending levels 18 of 47 Historical Budgeting Usually basing the budget from last years adjusted for inflation slightly 19 of 47 Dividends Annual payments made to shareholders 20 of 47 Fixed Overheads Indirect costs that have to be paid however the business is performing 21 of 47 Liquidation Closing the business down by selling all the assets and paying all debts 22 of 47 Working Capital Cycle How long it takes for a complete cycle from cash out from buying stock, to cash back in from payments 23 of 47 Liquidity The ability of a business to pay its debts back on time 24 of 47 Enterprise Resource Planning Planning that logs all of a firms costs, working methods and resources. Can be then used to plan production in the future 25 of 47 Barrier to Entry Factors that make it hard for a new firm to enter an existing market 26 of 47 GDP Gross domestic product is the value of all goods and services produced in a country 27 of 47 Job Enrichment Giving the people the opportunity to use their abilities (Herzberg) 28 of 47 Lean Production Focusing on minimising wastage of resources throughout the production process 29 of 47 Excess Capacity When there is more capacity than justified by current demand 30 of 47 Buffer Stock The desired minimum stock level held by a firm just in case something goes wrong 31 of 47 Competitive Advantage A feature that gives one business an edge over its rivals 32 of 47 Competitiveness The extend to which a firm can match or beat their rivals 33 of 47 Opportunity Cost The cost of missing out on the next best alternative when making a decision 34 of 47 Stockholding Cost The costs resulting from the stock levels held by a firm 35 of 47 Right First Time Avoiding mistakes and therefore achieving high quality with no wastage of time or materials 36 of 47 Zero Defects Eliminating quality defects by getting things right the first time 37 of 47 Consumer Demand The levels of spending by consumers in general 38 of 47 Discretionary Income A persons income after deducting taxes and fixed payments such as rent 39 of 47 Economic Environment The atmosphere surrounding the economy (gloom and doom, or optimism and boom) 40 of 47 Recession Two or more quarters of negative economic growth 41 of 47 Cartel An agreement between producers to control supply and thereby control prices. This is illegal but not unusual 42 of 47 Laissez-faire Means 'let it be' implying leaving business free to choose their own policies and practices. Trusting in the free market 43 of 47 Collusion When managers from different firms get together to discuss ways to work together to restrict supply and or raise prices 44 of 47 Non-price Competition All competitive strategies other than price such as branding, product design 45 of 47 Oligopoles markets dominated by a few large companies e.g. Supermarkets 46 of 47 Predatory Pricing Pricing low with the deliberate intention of driving out competition 47 of 47
5 strategies for the BUSS4 pre-release - AQA A2 Business Studies BUSS4 pre-release 2014 - China - Business Review 0.0 / 5
Comments
No comments have yet been made