AQA AS BUSINESS Paper
Business - ANSWER The creation of a customer; in other words, conceiving a
product or service that people will pay enough for to generate a profit.
Budgets - ANSWER an agreed ceiling on the monthly spending by any department
or manager
Corporate Objectives - ANSWER targets for the whole business, such as profits to
rise by 20% a year for the next three years.
Delegated - ANSWER Having passed authority down the hierarchy so that the local
or more expert person make the decision
Entrepeneur - ANSWER A person with the initiative and drive to make a business
idea happen
Mission - ANSWER A business aim Expressed to make it seem especially
purposeful and motivating
Mission Statement - ANSWER A short, powerfully- expressed sentence or two that
explains the business aims clearly, yet motivationally
Objectives - ANSWER Targets precise enough to allow praise or blame for the
person in charge
Profit optimisation - ANSWER that the surplus of revenue over costs should be just
right ; neither two high in the short term nor too low to finance long-term success
Strategy - ANSWER A medium long term plan for meeting your objectives
Bankrupt - ANSWER When an individual is unable to meet personal liabilities, some
or all of which can be as a consequence of business activities
Creditors - ANSWER those owed money by a business. ~For example, suppliers
and bankers
Incorporation - ANSWER establishing a business as a separate legal entity from its
owners, and therefore giving the owners limited liability
Limited liability - ANSWER Owners are not liable for the debts of the business; they
can lose no more than the sum they invested.
monopoly - ANSWER Where the sales of one business have a dominant share of its
marketplace
Registrar of companies - ANSWER The government department which allow firms
to become incorporated. It is located at Companies House, where Articles of
, Association , Memorandums of Association and the anual accounts of limited
companies are available for public scrutiny
Sole Trader - ANSWER A one-person business with unlimited liability
Unlimited Liability - ANSWER Owners are liable for any debts incurred by the
business, even if it requires them to sell all of their assets and possessions and
become personally bankrupt
Annual General Meeting (AGM) - ANSWER A yearly meeting inwhich company
directors invite all shareholders to come to quiz the board and vote on new
resolutions. A legal requirement for plcs
Dividend Cover - ANSWER Measures how well a firm's dividends are covered by its
profits for the year. Accountants require a figure of atleast 2, i.e, that the company
should pay out no more than half of its profits to shareholders.
Market capitalisation - ANSWER The value placed on the business by the stock
market, calculated as
share price x number of shares issued
Consumer Demand - ANSWER The levels of spending by consumers in general
(not just the demand from one consumer)
Discretionary Income - ANSWER A person's income after deducting taxes and fixed
payments such as rent and utility bills
Economic climate - ANSWER The atmosphere surrounding the economy (for
example , 'gloom and doom' or 'optimism and boom'0
GDP (Gross Domestic Product) - ANSWER The value of all goods and services sold
throughout the economy over a period of time (annually or perhaps per quarter)
Inferior Goods - ANSWER Suffer falling sales when people are better off , and rising
sales when people are worse off.
Real - ANSWER Changes in money (for example, wages) excluding the distorting
effect of change in prices. So a fall in real wadges might mean that wadges are
unchanged but prices have risen.
Recession - ANSWER A downturn in sales and production that occurs across most
parts of the economy, perhaps leading to six months of continuous economic decline
Co-ordinate - ANSWER the management task of ensuring that staff carrying out
different parts of a product are all working to the same time schedule and quality
standards
Sub-ordinates - ANSWER Those working for a manager and are therefore under his
or her command
Business - ANSWER The creation of a customer; in other words, conceiving a
product or service that people will pay enough for to generate a profit.
Budgets - ANSWER an agreed ceiling on the monthly spending by any department
or manager
Corporate Objectives - ANSWER targets for the whole business, such as profits to
rise by 20% a year for the next three years.
Delegated - ANSWER Having passed authority down the hierarchy so that the local
or more expert person make the decision
Entrepeneur - ANSWER A person with the initiative and drive to make a business
idea happen
Mission - ANSWER A business aim Expressed to make it seem especially
purposeful and motivating
Mission Statement - ANSWER A short, powerfully- expressed sentence or two that
explains the business aims clearly, yet motivationally
Objectives - ANSWER Targets precise enough to allow praise or blame for the
person in charge
Profit optimisation - ANSWER that the surplus of revenue over costs should be just
right ; neither two high in the short term nor too low to finance long-term success
Strategy - ANSWER A medium long term plan for meeting your objectives
Bankrupt - ANSWER When an individual is unable to meet personal liabilities, some
or all of which can be as a consequence of business activities
Creditors - ANSWER those owed money by a business. ~For example, suppliers
and bankers
Incorporation - ANSWER establishing a business as a separate legal entity from its
owners, and therefore giving the owners limited liability
Limited liability - ANSWER Owners are not liable for the debts of the business; they
can lose no more than the sum they invested.
monopoly - ANSWER Where the sales of one business have a dominant share of its
marketplace
Registrar of companies - ANSWER The government department which allow firms
to become incorporated. It is located at Companies House, where Articles of
, Association , Memorandums of Association and the anual accounts of limited
companies are available for public scrutiny
Sole Trader - ANSWER A one-person business with unlimited liability
Unlimited Liability - ANSWER Owners are liable for any debts incurred by the
business, even if it requires them to sell all of their assets and possessions and
become personally bankrupt
Annual General Meeting (AGM) - ANSWER A yearly meeting inwhich company
directors invite all shareholders to come to quiz the board and vote on new
resolutions. A legal requirement for plcs
Dividend Cover - ANSWER Measures how well a firm's dividends are covered by its
profits for the year. Accountants require a figure of atleast 2, i.e, that the company
should pay out no more than half of its profits to shareholders.
Market capitalisation - ANSWER The value placed on the business by the stock
market, calculated as
share price x number of shares issued
Consumer Demand - ANSWER The levels of spending by consumers in general
(not just the demand from one consumer)
Discretionary Income - ANSWER A person's income after deducting taxes and fixed
payments such as rent and utility bills
Economic climate - ANSWER The atmosphere surrounding the economy (for
example , 'gloom and doom' or 'optimism and boom'0
GDP (Gross Domestic Product) - ANSWER The value of all goods and services sold
throughout the economy over a period of time (annually or perhaps per quarter)
Inferior Goods - ANSWER Suffer falling sales when people are better off , and rising
sales when people are worse off.
Real - ANSWER Changes in money (for example, wages) excluding the distorting
effect of change in prices. So a fall in real wadges might mean that wadges are
unchanged but prices have risen.
Recession - ANSWER A downturn in sales and production that occurs across most
parts of the economy, perhaps leading to six months of continuous economic decline
Co-ordinate - ANSWER the management task of ensuring that staff carrying out
different parts of a product are all working to the same time schedule and quality
standards
Sub-ordinates - ANSWER Those working for a manager and are therefore under his
or her command
