Business Studies - Unit 3 Key Words

The amount of output between the actual level of output and the break even point

A stock management system where stocks are only ordered when they are needed

What is revenue?

Someone who buys shares in a company in what they hope will be fast growing and profitable

The ability to build upon exising ideas and develop a product

An organisation that support causes e.g. the environment and try to get a business to change

What is Break Even?

Where a supplier gives a customer a short period of time to pay for a bill for goods

Continous improvement

The monetary value of a business that belongs to the business owners

They have a high market growth with a low market share

Pay, usually of non-manual physical workers, expressed as a yearly figure but paid monthly 

Taxes put on goods imported into a country which make them more expensive to buyers

All the costs of a business (FC + VC)

Borrowing money from a bank by drawing more money than is in the current account

What happens during the development stage of the product life cycle

Ensuring that quality is produced and delivered at every stage of the production process

What is the 'Margin of Safety?'

The flow of cash in and out of a business

A disadvantage of high levels of buffer stock

A combination of factors which help a business to take into account customers needs

Which one is not an internal source of finance

A percentage mark up is added to the total cost of production/purchase

Structure of different levels of authority in a business organisation, one on top of the other

Payment operated for sales staff where their earnings are determined by how much they sell

Costs which change directly with the number of products made by a business

The lowest amount of stock to be kept by a business

What is the Formula for Break Even?

The combinaton or range of products that a business sells

The stages through which a product passes from its development to being withdrawn from sale

An advantage of JIT

Which one is not an 'environmental issue?'

Not an element of the Marketing Mix

How do you calculate net cash flow?

Productivity is...

How can a business reduce costs?

Employees are paid based on their production

What is profit?

What is a USP?

The path down which orders are passsed in a company

The time it takes a delivery to arrive when ordered

Ideas about what is morally correct or not applied in a business situation 

An example of inflow for a business

Part of a market that contains a group of buyers with similar buying habits

The number of people who report directly to another worker in an organisation

Setting an initial low price for a new product so its attractive to customers

A recognised quality standard

Measures designed to reduce foreign products coming into a country 

These can be used to fund other products

Which of these is not a 'fringe benefit?' 

The range of variables which contribute to successful design: function, cost, appearance