AQA AS BUSINESS Paper
Adding value - ANSWER A process through which a business increases the worth
of the resources included in production so that customers perceive the product to be
worth more than the cost of the inputs
Adverse variance - ANSWER Is the difference that reduces the profits
Adviser - ANSWER An external contact of a business that provides support and
advice, sometimes for free
Authoritarian/Autocratic - ANSWER The leader/manager makes the decisions on
their own.
Appraisal system - ANSWER The process by which a manager examines and
evaluated an employee's work by comparing it with preset targets
Bank loan - ANSWER A fixed amount loan from a bank which is generally used to
finance long-term assets
Bank overdraft - ANSWER Borrowings from a bank on a current account which are
payable on demand
Brand loyalty - ANSWER When consumers become committed to a particular brand
and make repeat purchases over time
Breakeven output (or point) - ANSWER The point at which the total sales of a
business equal total costs -i.e. the business is making neither a profit nor a loss
Budget/cash flow forecasts - ANSWER A detailed plan of income and expenses
expected over a certain period of time
Business angel - ANSWER A particular type of investor, usually a successful
entrepreneur, who is willing to invest in high-risk, high-growth firms at a very early
stage
Business culture - ANSWER The shared values, attitude, standards and beliefs
within a business
Business plan - ANSWER A detailed description of a new or existing business,
including the company's strategy, aims and objectives, marketing & financial plan
Business objective - ANSWER A stated goal or target of a business (note: a
business can have more than one objective!)
Capital intensive - ANSWER Industry requiring large sums of investment in
purchase, maintenance, and amortization of capital equipment, such as automotive,
petroleum, and steel industry. Capital intensive industries need a high volume of
, production and a high margin of profit (as well as low interest rates) to be able to
provide adequate returns on investment.
Capital gearing - ANSWER A Financial ratio that compares borrowed funds to total
capital employed (Equity+ borrowing)
Cash flow - ANSWER The movements of cash into ("inflows") and out of ("outflows")
a business
Capital - ANSWER Wealth in the form of money or other assets owned by a
business
Capital expenditure - ANSWER This is the money spent to buy fixed assets
Capital structure - ANSWER This refers to the way a business raises capital to
purchase assets
Cash flow forecast - ANSWER A projection, usually by week or month, of the likely
cash inflows and outflows in a business
Chain of command - ANSWER The order in which authority and power in an
organisation is wielded and delegated from top management to every employee at
every level. Authority flows down the chain of command, where as accountability
flows up
Channel of distribution - ANSWER This is the route a product takes from the
producer to the consumer
Concentrated marketing - ANSWER Involves targeting one or two segments
Contribution - ANSWER The difference between total sales and total variable costs
Confidence interval - ANSWER A range of values that you're fairly sure the value of
the population will lie within
Confidence levels - ANSWER These indicate how sure you are that the value of
population will lie within the confidence interval
Consumer profiles - ANSWER Methods of describing consumers so that they can
be grouped for marketing and advertising e.g. by age, sex, income eat
Contribution per unit - ANSWER A key number for breakeven analysis: the
difference between selling price per unit and variable cost per unit
Competitive pricing - ANSWER This is when companies monitor their competitors
prices to make sure that their own prices are set at an equal or lower level eg in
supermarkets they do this a lot
Corporate social responsibility - ANSWER A company's sense of responsibility
towards the community and the environment in which it operates
Adding value - ANSWER A process through which a business increases the worth
of the resources included in production so that customers perceive the product to be
worth more than the cost of the inputs
Adverse variance - ANSWER Is the difference that reduces the profits
Adviser - ANSWER An external contact of a business that provides support and
advice, sometimes for free
Authoritarian/Autocratic - ANSWER The leader/manager makes the decisions on
their own.
Appraisal system - ANSWER The process by which a manager examines and
evaluated an employee's work by comparing it with preset targets
Bank loan - ANSWER A fixed amount loan from a bank which is generally used to
finance long-term assets
Bank overdraft - ANSWER Borrowings from a bank on a current account which are
payable on demand
Brand loyalty - ANSWER When consumers become committed to a particular brand
and make repeat purchases over time
Breakeven output (or point) - ANSWER The point at which the total sales of a
business equal total costs -i.e. the business is making neither a profit nor a loss
Budget/cash flow forecasts - ANSWER A detailed plan of income and expenses
expected over a certain period of time
Business angel - ANSWER A particular type of investor, usually a successful
entrepreneur, who is willing to invest in high-risk, high-growth firms at a very early
stage
Business culture - ANSWER The shared values, attitude, standards and beliefs
within a business
Business plan - ANSWER A detailed description of a new or existing business,
including the company's strategy, aims and objectives, marketing & financial plan
Business objective - ANSWER A stated goal or target of a business (note: a
business can have more than one objective!)
Capital intensive - ANSWER Industry requiring large sums of investment in
purchase, maintenance, and amortization of capital equipment, such as automotive,
petroleum, and steel industry. Capital intensive industries need a high volume of
, production and a high margin of profit (as well as low interest rates) to be able to
provide adequate returns on investment.
Capital gearing - ANSWER A Financial ratio that compares borrowed funds to total
capital employed (Equity+ borrowing)
Cash flow - ANSWER The movements of cash into ("inflows") and out of ("outflows")
a business
Capital - ANSWER Wealth in the form of money or other assets owned by a
business
Capital expenditure - ANSWER This is the money spent to buy fixed assets
Capital structure - ANSWER This refers to the way a business raises capital to
purchase assets
Cash flow forecast - ANSWER A projection, usually by week or month, of the likely
cash inflows and outflows in a business
Chain of command - ANSWER The order in which authority and power in an
organisation is wielded and delegated from top management to every employee at
every level. Authority flows down the chain of command, where as accountability
flows up
Channel of distribution - ANSWER This is the route a product takes from the
producer to the consumer
Concentrated marketing - ANSWER Involves targeting one or two segments
Contribution - ANSWER The difference between total sales and total variable costs
Confidence interval - ANSWER A range of values that you're fairly sure the value of
the population will lie within
Confidence levels - ANSWER These indicate how sure you are that the value of
population will lie within the confidence interval
Consumer profiles - ANSWER Methods of describing consumers so that they can
be grouped for marketing and advertising e.g. by age, sex, income eat
Contribution per unit - ANSWER A key number for breakeven analysis: the
difference between selling price per unit and variable cost per unit
Competitive pricing - ANSWER This is when companies monitor their competitors
prices to make sure that their own prices are set at an equal or lower level eg in
supermarkets they do this a lot
Corporate social responsibility - ANSWER A company's sense of responsibility
towards the community and the environment in which it operates
