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29 Cards in this Set
- Front
- Back
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Above the line promotion |
A form of promotion that is undertaken by a business by paying for communication with customers. |
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Absenteeism |
Measures the rate of workforce absence as a proportion of the employee total. |
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Absenteeism ( Formula ) |
(Number of staff absent × 100) divided by total number of staff |
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Acid teat ratio |
Liquid assets ÷current liabilities |
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Accounts payable (creditors) |
Value of depts for goods bought on credit payable to suppliers. Also known as 'trade payables' |
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Accounts receivable (debtors) |
The value of payments to be received from customers who have bought goods on credit. Also known as 'Trade receivables' |
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Added value |
Is the difference between the cost of purchasing raw materials and the price the finished good is sold for |
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Advertising |
Paid-for communication with consumers to inform and persuade, e.g. TV and cinema advertising |
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Annual forecast net cash flow |
Forecast cash inflow - forecasted cash outflows |
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Asset-led marketing |
An approach to marketing that bases strategy on the firm's existing strengths and assets instead of purely on what the customer wants |
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Asset |
An item of monetary value that is owned by a business |
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Autocratic leadership |
A style of leadership that keeps all decision making at the centre of the organisation |
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Balance sheet |
An accounting statement that records the value of a business's assets, liabilities and shareholders' equity at one point in time |
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Batch production |
Producing a limited number of identical products - each item in the batch passes through one stage of production before passing on to the next stage |
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Below-the-line promotion |
Promotion that is not a directly paid-for means of communication, but based on short-term incentives to purchase |
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Brand |
An identifying symbol, name, image or trademark that distinguishes a product from its competitors |
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Branding |
The strategy of differentiating products from those of competitors by creating an identifiable image and clear expectations about a product |
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Break-even point of production |
The level of output at which total costs equal total revenue |
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Budget |
A detailed financial plan for the future |
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Buffer stocks |
The minimum stocks that should be held to ensure that production could still take place should a delay in delivery occur or production rates increase |
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Business investment |
Expenditure by businesses on capital equipment, new technology and research and development |
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Business plan |
A written document that describes a business, its objective and its strategies, the market it is in and its financial forecast |
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Capital employed |
The total value of all long-term finance invested in the business. This = (non-current assets + current assets) - current liabilities or non-current liabilities + shareholders' equity |
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Capital expenditure |
Anyitem bought by a business and t Retained for more than one year, the is the purchase of fixed or non-current assets |
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Capital goods |
The physical goods used by industry to aid in the production of other good and services, such as machines and commercial vehicles |
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Capital intensive |
A high quantity of capital equipment compared to labour input |
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Cash flow |
The sum of cash payments to a business (inflows) less the sum of cash payments (outflows) |
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Cash inflow |
Payments in cash received by a business, such as those from customers (debtors) or from the bank, e.g. receiving a loan |
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Cash flow forecast |
Estimate of a firm's future cash inflows and outflows |
