Business As Plc

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  • Created by: Pea_emma
  • Created on: 13-04-13 12:13
Job Production
The method of production where products are made individually
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Batch Production
The method of production where one type of product is made then production is switched to make a different product
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Flow Production
Production of one product takes place continuously using a production or assembly line. This is sometimes called mass production.
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Lean Production
A production system which helps to ensure that waste is kept to a minimum by using the just in time method.
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Added Value
The process of ensuring sales revenue is greater than the cost of production
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Quality
Consistently providing what customers want
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Quality control
Inspecting products during production, testing products, sampling products as they are produced.
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Quality Assurance
Minimising the chances the product will be substandard and the focus of quality assurance in on product design
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Total Quality Management (TQM)
The attitude attitude adopted by the whole business. Everyone in the workforce is concerned with quality at every stage of the production process so quality is checked by workers and not inspectors.
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Mechanisation
This is when machinery is used but labour is still required in order to work the machines.
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Automation
This is when machinery is used and a computer controls it. Workers just supervise the machines
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Sales revenue
The money a business receives from selling goods and services
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Average costs
All the costs of producing a particular product or service divided by the number sold.
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Total cost
All the costs of producing a particular product or service
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Variable cost
Costs that change as output change
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Fixed Costs
Costs which remain the same regardless of the level of output
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Breakeven
Fixed costs/ (selling price - Variable cost per car)
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Economies of scale
The increase in efficiency of production as the number of goods being produced increases.
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Technical economies
A business saves on production costs by using better methods and equipment
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Managerial economies
A business can employ specialist managers who improve efficiency
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Financial economies
A business does not have to pay out as much money to raise finances
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Risk-bearing economies
A business has a range of products or services so it is not dependent on one product
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Purchasing economies
A business gets a discount for buying in large quantities (buly buying(
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Marketing economies
A business saves on advertising and transport costs
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Diseconomies of scale
This is when firms become inefficient as they grow. In other words, their unit costs go up as they get bigger.
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Hire purchase
A business uses equipment but does not own it until it has made the final payment
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Mortgage
A business borrows a large sum of money to purchase or improve a building
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Overdraft
A bank allows a business to spend more money than there is in its current account
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Leasing
A business uses equipment but does not own it
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Loan
An amount of money which is given to the business to buy something. The money has to be paid back in full
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Grant
Money given to a business for a specific purpose. It does not have to be paid back
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Trade credit
Goods are obtained from another business without immediate payment being made
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Retained profit
Money earned by the business but not paid to the owners
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Sale of assetts
Money received following the sale of capital items owned by the business
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Share issue
Money obtained by selling part of the business
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Cash-flow forecast
A statement showing the expected flow of money into and out of a business over a period of time
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Balance carried forward
The amount of cash left over at the end of the month. It is taken forward and used at the begining of the next month and becomes the balance brought forward
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Balance brought forward
The amount of cash available at the begining of the month.
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Monopoly
A monopoly is a market which is dominated by one seller
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Oligopoly
An oligopoly is a market which is dominated by a few large suppliers
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Perfect competition
Perfect competition is a market which there are a large number of sellers
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Stakeholders
An individual or group of people who have an interest in a business including workers, customers, owners and the local community
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Business objective
Business objectives are what the business is trying to achieve.
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Sustainable production
Production that involves the use of renewable resources and recycled resources. It also minimises waste and the use of energy
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Renewable resources
Resources that can be used more than once, such as the wind.
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Other cards in this set

Card 2

Front

The method of production where one type of product is made then production is switched to make a different product

Back

Batch Production

Card 3

Front

Production of one product takes place continuously using a production or assembly line. This is sometimes called mass production.

Back

Preview of the back of card 3

Card 4

Front

A production system which helps to ensure that waste is kept to a minimum by using the just in time method.

Back

Preview of the back of card 4

Card 5

Front

The process of ensuring sales revenue is greater than the cost of production

Back

Preview of the back of card 5
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