AS Level Edexcel Business Studies (Theme 2)

The time it takes between delivery ordering and receiving delivery.

Designed to safeguard employees’ rights in the workplace.

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

How is contribution calculated

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

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

how is operating profit margin calculated

Shows the fluctuation in an economy. Measure by GDP

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

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

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

Which of the following is NOT a competitive environment

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

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

Which of the following are types of production

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

Money a business owes

How is capacity utilisation calculated

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

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

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

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

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

how is working capital calculated

Which of the following are NOT parts of the business cycle

The process of predicting future sales volumes and values.

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

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

How is the current ratio calculated

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

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

Margin of safety is the same as

Items of value owned by a business.

How is gross profit margin calculated

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

Which of the following is a type of competitive environment

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

A method of budgeting using pervious budgets.

Profit after cost of sales.

Debts that the business has to repay within one year

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

how is the acid test ratio calculated

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

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

Which of the following are NOT parts of the business cycle

A measure of output per unit of input

the process of transforming inputs into outputs.

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

A general rise in prices over a period of time.

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

The difference between actual and forecasted budget figures.

How is Operating profit calculated

Which of the following are types of production

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

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

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

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

The value of one currency in terms of another.

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

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

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

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

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

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

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

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

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

A financial plan for a firms costs and revenues.

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

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

The degree to which competition excises in a market.

Identical items that are produced in small groups.

The facility to spend up to an agreed amount.

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

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

The reward for saving money and cost of borrowing money.

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

The money received from selling goods or services.

How is breakeven calculated

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

The level of stock which triggers an order.

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