AS Level Edexcel Business Studies (Theme 2)

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

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

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

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

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

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

Which of the following are types of production

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

How is capacity utilisation calculated

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

The money received from selling goods or services.

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

A financial plan for a firms costs and revenues.

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

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

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

how is operating profit margin calculated

How is Operating profit calculated

Which of the following are types of production

the process of transforming inputs into outputs.

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

How is the current ratio calculated

how is working capital calculated

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

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

Items of value owned by a business.

The time it takes between delivery ordering and receiving delivery.

Debts that the business has to repay within one year

Shows the fluctuation in an economy. Measure by GDP

The reward for saving money and cost of borrowing money.

How is gross profit margin calculated

Margin of safety is the same as

A method of budgeting using pervious budgets.

Which of the following are NOT parts of the business cycle

Designed to safeguard employees’ rights in the workplace.

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

How is contribution calculated

The process of predicting future sales volumes and values.

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

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

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

Which of the following is a type of competitive environment

How is breakeven calculated

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

A general rise in prices over a period of time.

The level of stock which triggers an order.

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

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

Profit after cost of sales.

Money a business owes

Identical items that are produced in small groups.

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

Which of the following are NOT parts of the business cycle

how is the acid test ratio calculated

Which of the following is NOT a competitive environment

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

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

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

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

The difference between actual and forecasted budget figures.

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

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

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

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

A measure of output per unit of input

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

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

The facility to spend up to an agreed amount.

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

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

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

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

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

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

The degree to which competition excises in a market.

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

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

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

The value of one currency in terms of another.

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

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

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