Aqa A Level Business - Definitions

AQA A LEVEL BUSINESS - DEFINITIONS v v v v v




Adverse varience - correct answer-When actual costs are higher than budget
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costs
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Autocratic - correct answer-When the manager makes all the decisions
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Bank overdraft - correct answer-The amount that can be overspent on a bank
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account (be overdrawn)
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Blake mouton grid - correct answer-The concern for people and production a
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manager has
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Boston matrix - correct answer-Product portfolio analysis of a business into 4
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categories
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Branding - correct answer-how consumers recognise and identify with a product
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Break-Even - correct answer-The point when total sales is equal to total costs
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Budget - correct answer-Income and costs predicted over a period of time
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Buffer inventory - correct answer-Minimum amount of stock a business requires to
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operate
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Capacity utilisation - correct answer-The amount of total capacity is being used
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Cash flow - correct answer-Cash moving into and out of a business
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Cash flow forecast - correct answer-The projection of likely cash inflows and
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outflows
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Competition - correct answer-Other businesses that compete for a share in the
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same market
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, Competitiveness - correct answer-The business' ability to offer a better product v V v V vV v V v V v V v V v V v V v V v V


than its competitors (measured in customers)
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Correlation - correct answer-Relationship between two variables v V v V vV v V v V v V v V




Total Contribution - correct answer-The difference between the total sales and
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vtotal variable costs
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Delegation - correct answer-Where a responsibility or task is passed onto another
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employee in the business
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Demand - correct answer-Amount of a good or service that customers desire
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Democratic - correct answer-Leadership management when the manager involves v V v V vV v V v V v V v V v V v V


the employees to make a decision
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Distribution channel - correct answer-How the business gets its products to the v V v V v V vV v V v V v V v V v V v V v V v V


end consumer
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Dividend - correct answer-x v V v V vV v V




Elasticity of demand - correct answer-Responsiveness of demand towards the
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change of price
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Extrapolation - correct answer-Using previous data to predict future data v V v V vV v V v V v V v V v V v V v V




Favourable variance - correct answer-When the actual is higher than budgeted v V v V v V vV v V v V v V v V v V v V v V


vresults
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Fixed costs - correct answer-Costs that do not vary with the level of output
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v v V




Gross profit - correct answer-Revenue - cost of sales
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Hierarchy - correct answer-The structures and levels of management and
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supervision within a business
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Income elasticity of demand - correct answer-The responsiveness of demand to a
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vchange of income
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Inventory control - correct answer-Process that ensures that the business has
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vsufficient but not too much stock
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Job design - correct answer-The way which tasks are combined to form a job
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Just-in-time - correct answer-Method when inventory arrives just when it's needed v V v V vV v V v V v V v V v V v V v V v V




Labour productivity - correct answer-Output produced per employee over a given
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