EDEXCEL IGCSE Business Studies
Exam Questions & Answers 2023
Above-the-line promotion - ANSWER-Placing adverts using the media.
Acid test ratio - ANSWER-Similar to the current ratio but excludes stocks from current assets. Sometimes
called the quick ratio.
Advertising - ANSWER-Communication between a business and its customers whereby messages are
placed in the media to encourage the purchase of products.
Agent or broker - ANSWER-An intermediary that brings together buyers and sellers.
Anti-competitive practices or restrictive trade practices - ANSWER-An attempt by firms to prevent or
restrict competition.
Assets - ANSWER-Resources used or owned by the business in production.
Assisted areas - 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 - ANSWER-An accounting procedure which checks thoroughly the accuracy of a company's
accounts.
Authority - ANSWER-The right to command and make decisions.
Balance of trade or visible balance - ANSWER-The difference between visible exports and visible imports.
Balance sheet - ANSWER-A summary at that time of business assets, liabilities and capital.
,Barriers to entry - ANSWER-Obstacles that make it difficult for new firms to enter a market.
Batch production - ANSWER-A method which involves completing one operation at a time on all units
before performing the next.
Below-the-line promotion - ANSWER-Any promotion that does not involve using the media.
Bonus systems - ANSWER-A payment in addition to the basic wage for reaching targets or in recognition
for service.
Boston matrix - 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 - ANSWER-The name of a product which consumers see as being different from those of
rivals.
Break-even - 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 - ANSWER-A graph which shows total cost and total revenue. The break-even point is
where total cost and total revenue intersect.
Brownfield site - ANSWER-Areas of land which were once used for urban development.
Budget - ANSWER-A plan that shows how much money a business expects to spend or receive in a future
period of time.
Business - ANSWER-An organisation which produces goods and services.
Business ethics - ANSWER-Ideas about what is morally right or wrong in business.
, Capital - ANSWER-A source of funds provided by the owners of the business used to buy assets.
Capital-intensive production - ANSWER-Production methods that make more use of machinery relative
to labour.
Cash flow - ANSWER-The flow of money into and out of a business.
Cash flow forecast - 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 - ANSWER-The flow of money into a business.
Cash outflows - ANSWER-The flow of money out of a business.
Cell production - ANSWER-Involves producing a "family of products" in a small self-contained unit (a cell)
within a factory.
Chain of command - ANSWER-The route through which orders are passed down in the hierarchy.
Commission - ANSWER-A payment based on the value of sales, usually a percentage of sales made.
Communication - ANSWER-The sending and receiving of messages.
Communication barriers - ANSWER-Things that get in the way of communication.
Communication channels - ANSWER-Routes along which information travel in a business.
Communication media - ANSWER-The different methods by which information can be sent.
Competition-based pricing - ANSWER-Pricing strategies based on the prices charged by rivals.
Exam Questions & Answers 2023
Above-the-line promotion - ANSWER-Placing adverts using the media.
Acid test ratio - ANSWER-Similar to the current ratio but excludes stocks from current assets. Sometimes
called the quick ratio.
Advertising - ANSWER-Communication between a business and its customers whereby messages are
placed in the media to encourage the purchase of products.
Agent or broker - ANSWER-An intermediary that brings together buyers and sellers.
Anti-competitive practices or restrictive trade practices - ANSWER-An attempt by firms to prevent or
restrict competition.
Assets - ANSWER-Resources used or owned by the business in production.
Assisted areas - 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 - ANSWER-An accounting procedure which checks thoroughly the accuracy of a company's
accounts.
Authority - ANSWER-The right to command and make decisions.
Balance of trade or visible balance - ANSWER-The difference between visible exports and visible imports.
Balance sheet - ANSWER-A summary at that time of business assets, liabilities and capital.
,Barriers to entry - ANSWER-Obstacles that make it difficult for new firms to enter a market.
Batch production - ANSWER-A method which involves completing one operation at a time on all units
before performing the next.
Below-the-line promotion - ANSWER-Any promotion that does not involve using the media.
Bonus systems - ANSWER-A payment in addition to the basic wage for reaching targets or in recognition
for service.
Boston matrix - 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 - ANSWER-The name of a product which consumers see as being different from those of
rivals.
Break-even - 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 - ANSWER-A graph which shows total cost and total revenue. The break-even point is
where total cost and total revenue intersect.
Brownfield site - ANSWER-Areas of land which were once used for urban development.
Budget - ANSWER-A plan that shows how much money a business expects to spend or receive in a future
period of time.
Business - ANSWER-An organisation which produces goods and services.
Business ethics - ANSWER-Ideas about what is morally right or wrong in business.
, Capital - ANSWER-A source of funds provided by the owners of the business used to buy assets.
Capital-intensive production - ANSWER-Production methods that make more use of machinery relative
to labour.
Cash flow - ANSWER-The flow of money into and out of a business.
Cash flow forecast - 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 - ANSWER-The flow of money into a business.
Cash outflows - ANSWER-The flow of money out of a business.
Cell production - ANSWER-Involves producing a "family of products" in a small self-contained unit (a cell)
within a factory.
Chain of command - ANSWER-The route through which orders are passed down in the hierarchy.
Commission - ANSWER-A payment based on the value of sales, usually a percentage of sales made.
Communication - ANSWER-The sending and receiving of messages.
Communication barriers - ANSWER-Things that get in the way of communication.
Communication channels - ANSWER-Routes along which information travel in a business.
Communication media - ANSWER-The different methods by which information can be sent.
Competition-based pricing - ANSWER-Pricing strategies based on the prices charged by rivals.
