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Acid tests ratio
A similar measure to the working capital ratio but much stricter because it excludes stock from the current assets of the business. It is a good indicator of how quickly the business can settle its short term debt.
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Batch production
is the name given to the process where several identical products are made at the same time
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Breakeven
The level of output where a business's total revenue is equal to its total cost
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Cash flow forecast
A financial document which shows the expected cash incomes and expenditures of a business over a period of time. It helps financial planning because it can identify periods when cash shortages might occur
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chain of command
The route followed when an instruction is issued by a manager. The more levels there are in an organisations management's hierachy,the longer the chain of command
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Consumer Protections
are law and organisations that attempt to stop businesses from treating the buying public unfairly. Examples of consumer protection laws include the Fair Trading Act 1973 and the trades description acts 1968 and 1972
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Cost plus pricing
putting a price on a product that comprises the cost of of producing it plus a mark-up for profit.
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Creaming
A pricing strategy which involves charging an initial, high, price on a new product.
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Current assets
Assets which are used up quickly by a business. eg Raw materials and cash
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Current liabilities
the debts a business owes and which will have to paid within the net 12 months.
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Direct cost
Cost that are direct result of producing a product. They are very similar to variable cost
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Direct sales
Product that are sold straight to the consumer or final user without passing through the chain of command.
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Fixed and variable cost
Fixed costs do not change as production charges: variable costs changes as production changes.
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Fixed assets
Assets owned by the business which are used over a long period of tie. for example machiner, tools and vehicles.
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Gearing
The balance between the money a business has borrowed and the money invested into the business by i owners.
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Gross profit ratio
Also known as the gross profit margin, it is the gross profit of a business expressed as a percentage of total sales reveue
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Gross profit
Sales revenue or turnover minus the costs of sales
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Hierarchy
The relative importance of workers and managers, often shown on a chrt or digram with the most important at the top and the least important at the bottom
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Job enrichment
is an attempt to increase motivation by giving the worker more responsibilty and therefor offering more challenge to the work
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Job production
is when a single product is mate at a time.
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Job rotation
when dull, repetitive jobs are made more bareable by allowing the workers to move onn a regular basis between different task
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Lean production
The name given to a series of measure, such as just in time stock control, used by the business to reduce waste when producing goods.
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Limited liability
the liability of the owners (who are the shareholders) is limited to the amount that they originally
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Liquidity
The ease with which some assets can be converted into cash
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Minimum wage act
This act sets out the lowest hourly rate of pay that workers can recieve
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Net assets
the value or net wort of a business ate all the liabilities have been deducted.
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net profit ratio
The net profit of a business expressed as a percentage of total sales. It can be calculated either before taxation and interest charges have been taken away or after.
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Niche market
A very small segment of the tota market. Te products being sold may be quite specialist.
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Card 2

Front

is the name given to the process where several identical products are made at the same time

Back

Batch production

Card 3

Front

The level of output where a business's total revenue is equal to its total cost

Back

Preview of the back of card 3

Card 4

Front

A financial document which shows the expected cash incomes and expenditures of a business over a period of time. It helps financial planning because it can identify periods when cash shortages might occur

Back

Preview of the back of card 4

Card 5

Front

The route followed when an instruction is issued by a manager. The more levels there are in an organisations management's hierachy,the longer the chain of command

Back

Preview of the back of card 5
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