AQA A Level Business Unit 7 Key Terms

AQA A Level Business Unit 7 Key Terms Mission - ANS An organisation's aims or long-term intentions, its ultimate purpose. Corporate objectives - ANS Goals of an organisation as a whole rather than the different functional elements of the organisation. Strategy - ANS The medium to long term plan in which an organisation aims to achieve its objectives. Tactics - ANS The way a strategy is carried out. Functional decision making - ANS Decision making that is meant for the short to medium term and applies to a specific functional area. Strategic decision making - ANS Decision making that applies to the whole overall policy of an organisation. SWOT analysis - ANS A technique that enables an organisation to assess its position by using an internal audit to assess its strengths and weaknesses and another external audit to assess its opportunities and threats. Balance sheet - ANS A financial statement that summarises a company's assets, liabilities and shareholder's equity at a particular point in time. Income statement - ANS An account showing the income and expenditure of a company over a period of time. Management accounting - ANS The creation of financial information for use by internal users in a business to overlook the financial performance of a business. Assets - ANS Items that are owned by an organisation. Non current assets - ANS Resources that can be used repeatedly in the production process. Current assets - ANS Assets that can be expected to be turned into cash in one year. Financial accounting - ANS The supply of financial information to show external users the financial performance of the business. Liabilities - ANS Debts owed by an organisation to suppliers, shareholders, investors or customers who have paid in advance. Total equity (or total shareholders' equity -capital-) - ANS Funds provided by shareholders to set up the business, fund expansion and purchase fixed assets. Gross profit - ANS Revenue minus cost of sales. The gross profit shows how efficiently a business is converting its raw materials or stock into finished products.