EDEXCEL IGCSE Business Studies Exam Questions And And Answers.

Above-the-line promotion - correct answer Placing adverts using the media. Acid test ratio - correct answer Similar to the current ratio but excludes stocks from current assets. Sometimes called the quick ratio. Advertising - correct answer Communication between a business and its customers whereby messages are placed in the media to encourage the purchase of products. Agent or broker - correct answer An intermediary that brings together buyers and sellers. Anti-competitive practices or restrictive trade practices - correct answer An attempt by firms to prevent or restrict competition. Assets - correct answer Resources used or owned by the business in production. Assisted areas - correct answer Areas that are designated as having economic problems by the UK or EU and are eligible for support in a variety of forms. Auditing - correct answer An accounting procedure which checks thoroughly the accuracy of a company's accounts. Authority - correct answer The right to command and make decisions. Balance of trade or visible balance - correct answer The difference between visible exports and visible imports. Balance sheet - correct answer A summary at that time of business assets, liabilities and capital. Barriers to entry - correct answer Obstacles that make it difficult for new firms to enter a market. Batch production - correct answer A method which involves completing one operation at a time on all units before performing the next. Below-the-line promotion - correct answer Any promotion that does not involve using the media. Bonus systems - correct answer A payment in addition to the basic wage for reaching targets or in recognition for service. Boston matrix - correct answer A 2 x 2 matrix which describes products according to the market share they enjoy and whether the market has any potential for growth. Brand names - correct answer The name of a product which consumers see as being different from those of rivals. Break-even - correct answer The level of output where total costs and total revenue are exactly the same. Neither a profit nor a loss is made. Break-even chart - correct answer A graph which shows total cost and total revenue. The break-even point is where total cost and total revenue intersect. Brownfield site - correct answer Areas of land which were once used for urban development. Budget - correct answer A plan that shows how much money a business expects to spend or receive in a future period of time. Business - correct answer An organisation which produces goods and services. Business ethics - correct answer Ideas about what is morally right or wrong in business. Capital - correct answer A source of funds provided by the owners of the business used to buy assets. Capital-intensive production - correct answer Production methods that make more use of machinery relative to labour. Cash flow - correct answer The flow of money into and out of a business. Cash flow forecast - correct answer The prediction of all expected receipts and expenses of a business over a future time period which shows the expected cash balance at the end of each month. Cash inflows - correct answer The flow of money into a business. Cash outflows - correct answer The flow of money out of a business. Cell production - correct answer Involves producing a "family of products" in a small self-contained unit (a cell) within a factory. Chain of command - correct answer The route through which orders are passed down in the hierarchy. Commission - correct answer A payment based on the value of sales, usually a percentage of sales made. Communication - correct answer The sending and receiving of messages. Communication barriers - correct answer Things that get in the way of communication. Communication channels - correct answer Routes along which information travel in a business. Communication media - correct answer The different methods by which information can be sent. Competition-based pricing - correct answer Pricing strategies based on the prices charged by rivals. Computer numerically-controlled machines (CNCs) - correct answer Machines which carry out the instructions fed by computers