BUSS3 definitions

?
  • Created by: J Chapman
  • Created on: 09-03-14 23:57
Corporate Objectives
The overall (long term) goals of an entire business
1 of 27
Growth
An increase in the overall scale of a business
2 of 27
Diversification
Selling new products in new markets
3 of 27
Functional Objectives
Goals pursued by a particular function within a business to help achieve a corporate objective
4 of 27
Functional Strategy
A medium to long-term strategy used by a function within a business, to help them achieve their functional objectives
5 of 27
Financial Objective
A goal pursued by a businesses finance department
6 of 27
Cash Flow
The amount of money flowing into and out of a business
7 of 27
Cost Minimisation
Reducing all cost incurred by a business to the minimum possible level
8 of 27
ROCE
(Return On Capital Employed) The net profit made by a business, expressed as a percentage of the value of the capital employed within the business
9 of 27
Shareholder Returns
Share price plus all future dividends
10 of 27
Balace Sheet
A accounting statement expressing the value of a firms assets and liabilities on the last day of an accounting period
11 of 27
Current Assets
Assets that will be converted into cash by the end of the accounting year, and all cash owned by the business
12 of 27
Non-Current Assets
Assets purchased for long term use, rather than resale, usually held for over a year
13 of 27
Working Capital (aka Liquid Assets)
The funds available to a business to finance day to day opperations
14 of 27
Liquidity
Refers to a businesses ability to pay off its short term debts
15 of 27
Depreciation
The decrease in an assets value over time (listed as an expense on the income statement)
16 of 27
Income Statement
An accounting statement that documents a firms sales revenue over a period of time, and the costs incurred generating that revenue
17 of 27
Gross Profit
= Sales Revenue - Cost of Sales
18 of 27
Operating Profit
= Gross Profit - (Expenses + Overheads)
19 of 27
Finance Income
Interest earned by a business on deposits with banks
20 of 27
Finance Expenses
Interest paid on loans owed by a business
21 of 27
Profit Quality
Refers to the likelihood that an individual profit source will continue
22 of 27
Retained Profits
Profits kept by the business and added to their balance sheet reserves
23 of 27
Distributed Profits
Profits shared amongst external parties, such as owners, partners and shareholders
24 of 27
Intangible Assets
Assets that are not physical in nature
25 of 27
Window Dressing
Where a business makes (sometimes misleading) changes to their financial statements to make them more attractive to potential investors
26 of 27
Massaging Profit Figures
Adjusting cost and revenue figures, often by moving sales forward from an earlier period
27 of 27

Other cards in this set

Card 2

Front

An increase in the overall scale of a business

Back

Growth

Card 3

Front

Selling new products in new markets

Back

Preview of the back of card 3

Card 4

Front

Goals pursued by a particular function within a business to help achieve a corporate objective

Back

Preview of the back of card 4

Card 5

Front

A medium to long-term strategy used by a function within a business, to help them achieve their functional objectives

Back

Preview of the back of card 5
View more cards

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all All resources »