Unit 2

HideShow resource information
  • Created by: rhiannon
  • Created on: 10-04-14 23:03
Retained Profit
The part of its profit used by a company to put back into the business, rather than be given to shareholders.
1 of 39
Merger
Two businesses joining together to save on their costs or reduce competition.
2 of 39
Diversify
Produce a range of goods or services, which spreads the risk of the business failing.
3 of 39
Demerger
Breaking up a business into two or more separate parts, each run independently.
4 of 39
Organic Growth
Growing by increasing turnover and sales.
5 of 39
Input
The resources or factors of production that a business uses to produce its product.
6 of 39
Redundant
When resources, such as members of the labour force, are no longer needed.
7 of 39
Takeover
Taking control of another business by buying more than half of its shares.
8 of 39
Acquisition
A business that is allowed to sell shares to anyone who wants to buy them.
9 of 39
Brand Name
A well-known company or product that consumers trust.
10 of 39
Royalty
The fee paid to a business for using its brand name.
11 of 39
Overstreched
When a business tries to grow too quickly, which can result in profits falling.
12 of 39
Product Life Cycle
The product life cycle is the succession of strategies used by business management as a product goes through its life cycle.
13 of 39
Profit and Loss Account
A profit and loss account shows the businesses financial performance over a given time period e.g. one year.
14 of 39
Balance Sheet
An account that gives a statement of a firms wealth on a particular date and shows its assets, liabilities and capital.
15 of 39
Costs of Sales
The costs of goods made or bought by a business.
16 of 39
Corporation Tax
The tax paid by the business on their profits.
17 of 39
Fixed Costs/Overheads
Costs that do not change as output changes.
18 of 39
Current Assets
These are the assets which can be easily turned into cash such as stock and debtors.
19 of 39
Current Liabilities
These are debts which the firm has to repay within one year.
20 of 39
Capital Employed
This is the amount of capital or money put into the business.
21 of 39
Liquidity
A businesses ability to meet short term cash payments on time.
22 of 39
Current Ratio
A measure of the ability of the business to meet short term debts.
23 of 39
Acid Test Ratio
A measure of the ability of the business to meet short term debts but it considers that a firm may struggle to sell stock or have to sell it for less.
24 of 39
Outsourcing
Where business functions are provided by external specialist organizations rather than provided in-house.
25 of 39
Homeworking
Where employees can do their job from home, increasingly linked to their employer via the internet.
26 of 39
Peripheral Workers
Part time, temporary and self-employed workers brought into the business as and when needed.
27 of 39
Chain of Command
The order in which authority and power is used and delegated to each member of staff in an organization.
28 of 39
Span of Control
The number of people who report to a manager in a hierarchy.
29 of 39
Delayering
The action or process of reducing the number of levels in the hierarchy of employees in an organization.
30 of 39
Economies of Scale
The reason why production costs of each item falls as a firm expands.
31 of 39
Diseconomies of Scale
The reason why production costs of each item rise as a firm expands.
32 of 39
Lean Production
A production approach that aim to use fewer resources by using them more efficiently.
33 of 39
Just In Time Manufacturing
Ordering supplies so they are delivered just when needed and making goods only when they have been ordered.
34 of 39
Specialization
Work is divided into separate jobs that allows workers to become skilled at one of them.
35 of 39
Flow Production
Large scale, continuous production on a production line.
36 of 39
Expenses
Indirect costs incurred with operating the business, not direct production costs.
37 of 39
Off the Job Training
Training provided away from the workplace often provided by a specialist trainer.
38 of 39
On the Job Training
Training that takes place within the business, so that the employees learns about their work whilst completing tasks in a real situation.
39 of 39

Other cards in this set

Card 2

Front

Two businesses joining together to save on their costs or reduce competition.

Back

Merger

Card 3

Front

Produce a range of goods or services, which spreads the risk of the business failing.

Back

Preview of the back of card 3

Card 4

Front

Breaking up a business into two or more separate parts, each run independently.

Back

Preview of the back of card 4

Card 5

Front

Growing by increasing turnover and sales.

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 Methods to grow a business resources »