AS Level Edexcel Business Studies (Theme 2)

The production of one off items to meet specific needs of each customer.

The difference between actual and forecasted budget figures.

The time it takes between delivery ordering and receiving delivery.

An arrangement with a supplier to pay for goods at a later date.

The reward for saving money and cost of borrowing money.

A firm’s profit after all other expenses have been deducted.

The level of stock held by a business to cope with unforeseen circumstances.

A measure of output per unit of input

The checking of a good or service before it is delivered to the customer.

Production that uses a high proportion of labour in the production of a good or service.

The money received from selling goods or services.

Which of the following are types of production

Protects consumers with regards to the quality of goods and services sold.

Working practices that focus on cutting waste whilst maintain or improving quality.

An attitude towards quality assurance in which each employee is a link in the chain

Legislation designed to promote health competition in markets and free and fair trade.

A form of production whereby the production line splits into a series of self contained parts.

Debts that the business has to repay within one year

Shows the fluctuation in an economy. Measure by GDP

A measure of the percentage of potential output that is being achieved.

How is the current ratio calculated

How is contribution calculated

how is operating profit margin calculated

A capital intensive approach to production in which items flow along a production line

Likely to be kept for longer than one year, e.g. buildings, equipment.

Production that uses a high proportion of capital in the production of a good or service.

Funds used from outside the business. E.g business angels, banks and crowd funding.

Which of the following are types of production

Costs which change in relation to output, e.g. wages, raw materials.

A measure of a business’ ability to meet day to day expenses.

how is working capital calculated

How is gross profit margin calculated

Creating and enforcing laws to protect individuals, firms and society.

How is breakeven calculated

A financial document which summarises the worth of a business. It shows assets and liabilities.

Maintaining stock levels to ensure there is sufficient stock to meet demand.

The value of one currency in terms of another.

Which of the following is a type of competitive environment

A document which describes how an entrepreneur proposes to set up a new business.

Aims to ensure that a firm’s operations meets a legally acceptable standard.

The facility to spend up to an agreed amount.

A method of budgeting using pervious budgets.

Identical items that are produced in small groups.

The extent to which an investor is legally responsible for the debts of a business.

The direct costs of raw materials purchased to produce the goods or services.

how is the acid test ratio calculated

A financial plan for a firms costs and revenues.

The checking of a product or service at each stage of its production process.

How is Operating profit calculated

The level of stock which triggers an order.

A lean production technique used to minimise stock holdings at each stage of production.

Which of the following are NOT parts of the business cycle

The degree to which competition excises in a market.

Designed to safeguard employees’ rights in the workplace.

The point at which the business is making neither a profit or loss.

A contract that allows the renting of an asset from another business.

Money a business owes

A financial document that shows a business’ trading activities and expenses

Which of the following is NOT a competitive environment

Costs which do not change as output changes, e.g. rent, salaries.

Which of the following are NOT parts of the business cycle

A document which shows the prediction of cash inflows and outflows over a period of time.

Funds used from within the business. E.g owner’s capital, retained profits and sale of assets.

The process of predicting future sales volumes and values.

Margin of safety is the same as

Debts the business has that it repays over more than one year,

A method of setting budgets where each department creates a new budget starting from nothing.

The difference in the actual number of units sold and the number required to reach breakeven

A general rise in prices over a period of time.

The amount left after variable costs are paid for, Used to contribute towards fixed costs.

Likely to be turned into cash within a year, e.g. inventories , receivables and cash.

Profit after cost of sales.

the process of transforming inputs into outputs.

The flow of cash into (inflow) and out of (outflow) a business.

Items of value owned by a business.

Investment from an established business or person in return for a % of equity in the business.

A quality management system that concentrates on small but step by step improvements.

A measure of inflation using a basket of goods to represent commonly purchased items.

How is capacity utilisation calculated

Informal work groups who volunteer to meet reguarly to discuss issues relating to the workplace

A measure of a business’ activity to meet day to day expenses and short term debts.

The money left over after costs have been taken from revenue.