BUS001 – Business Studies Glossary – Complete
Definitions List for Key Concepts and
Terminology
Above-the-line promotion - Placing adverts using the media.
Acid test ratio - Similar to the current ratio but excludes stocks from current assets. Sometimes called
the quick ratio.
Advertising - Communication between a business and its customers whereby messages are placed in
the media to encourage the purchase of products.
Agent or broker - An intermediary that brings together buyers and sellers.
Anti-competitive practices or restrictive trade practices - An attempt by firms to prevent or restrict
competition.
Assets - Resources used or owned by the business in production.
Assisted areas - Areas that are designated as having economic problems by the UK or EU and are
eligible for support in a variety of forms.
Auditing - An accounting procedure which checks thoroughly the accuracy of a company's
accounts.
Authority - The right to command and make decisions.
Balance of trade or visible balance - The difference between visible exports and visible
imports.
, Balance sheet - A summary at that time of business assets, liabilities and capital.
Barriers to entry - Obstacles that make it difficult for new firms to enter a market.
Batch production - A method which involves completing one operation at a time on all units before
performing the next.
Below-the-line promotion - Any promotion that does not involve using the media.
Bonus systems - A payment in addition to the basic wage for reaching targets or in recognition for
service.
Boston matrix - 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 - The name of a product which consumers see as being different from those of
rivals.
Break-even - 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 - A graph which shows total cost and total revenue. The break-even point is where
total cost and total revenue intersect.
Brownfield site - Areas of land which were once used for urban development.
Budget - A plan that shows how much money a business expects to spend or receive in a future
period of time.
Business - An organisation which produces goods and services.
Business ethics - Ideas about what is morally right or wrong in business.
Capital - A source of funds provided by the owners of the business used to buy assets.
Definitions List for Key Concepts and
Terminology
Above-the-line promotion - Placing adverts using the media.
Acid test ratio - Similar to the current ratio but excludes stocks from current assets. Sometimes called
the quick ratio.
Advertising - Communication between a business and its customers whereby messages are placed in
the media to encourage the purchase of products.
Agent or broker - An intermediary that brings together buyers and sellers.
Anti-competitive practices or restrictive trade practices - An attempt by firms to prevent or restrict
competition.
Assets - Resources used or owned by the business in production.
Assisted areas - Areas that are designated as having economic problems by the UK or EU and are
eligible for support in a variety of forms.
Auditing - An accounting procedure which checks thoroughly the accuracy of a company's
accounts.
Authority - The right to command and make decisions.
Balance of trade or visible balance - The difference between visible exports and visible
imports.
, Balance sheet - A summary at that time of business assets, liabilities and capital.
Barriers to entry - Obstacles that make it difficult for new firms to enter a market.
Batch production - A method which involves completing one operation at a time on all units before
performing the next.
Below-the-line promotion - Any promotion that does not involve using the media.
Bonus systems - A payment in addition to the basic wage for reaching targets or in recognition for
service.
Boston matrix - 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 - The name of a product which consumers see as being different from those of
rivals.
Break-even - 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 - A graph which shows total cost and total revenue. The break-even point is where
total cost and total revenue intersect.
Brownfield site - Areas of land which were once used for urban development.
Budget - A plan that shows how much money a business expects to spend or receive in a future
period of time.
Business - An organisation which produces goods and services.
Business ethics - Ideas about what is morally right or wrong in business.
Capital - A source of funds provided by the owners of the business used to buy assets.
