Business studies generic cards
Revision cards for OCR GCSE BUSINESS STUDIES UNIT A292.
Production, finance and external influences on business.
- Created by: david Blackshaw
- Created on: 07-04-11 23:50
Types of production
- Job production-
one made to individual specification. for example a fitted kitchen.
- Batch production-
The same machinery and labour is used to make different batches or groups of products.
types of production (continued)
- Flow production-
a product being assembled or processed as it moves along a production line. examples are car manufacturing.
- Process Production
done in steps, examples are refining and baking.
Added Value
- Unique Selling Point-
the factor that only your business or product has, which makes it stand out.
- Adding Value
Making a product worth more to a customer. value is added at each stage of production.
Technology and specialisation
- Specialisation-
When a worker is used for a specific job. so becomes highly skilled at it.
- Division of labour-
Dividing the workforce into small groups to tackle small parts of a job.
- Lean Production-
minimising the use of all inputs necessary for production.
- Just in time-
a version of lean production where materials, components ect, arrive just as they are needed.
Maintaining Quality
- Quality-
To a business, a product that is up to standard; to a customer, a product that does what it should.
- Total quality management-
Everyone is responsible for management.
- Kitemark
the logo that shows the product is BSI approved.
Economies and Diseconomies of scale
- Productivity-
The efficency of resources; more productivity means more product from the same input.
- Economies of Scale-
Benefits gained from the growth of a business.
- Bulk-
A large amount.
business Costs
- Revenue-
The income of the business from sales.
- Fixed Costs-
those costs that do not vary with production e.g Rent.
Business Costs (continued)
- Variable Costs-
Those costs that do vary with production e.g Raw materials.
- Average Cost-
The cost for each unit of production made by a business.
Break even analysis
- Break even-
Where costs equal revenue and the business is making neither a profit or loss.
Sources of finance.
- Owner's funds-
the money that the owners already have.
- Venture capitalists-
private investors willing to risk money on new businesses e.g dragons den.
Sources of finance (continued)
- Retained profit-
profit kept by the business to help finance growth.
- Overdraft-
Bank permission to withdraw more from an account than deposited.
Sources of finance (continued)
- internal sources of finance-
Finance that comes from within the business.
- External source of finance-
Finance that comes from outside of the business.
- Asset-
Something that a business owns.
Sources of finance (continued)
- Floating a company-
Offering shares in the company to the public, via the stock exchange.
Cash Flow Forecasting.
- Cash Flow-
Money flowing into and out of a business.
- Cash flow statement-
Flows that took place in the past.
- Lean Production-
minimising the use of all inputs necessary for production.
- Just in time-
a version of lean production where materials, components ect, arrive just as they are needed.
Cash flow forecasting (continued)
- Cash Flow forecast-
A prediction of future flows.
- Cash Flow Crisis-
When there is insufficient cash to pay immediate bills.
Maintaining Quality
- Quality-
To a business, a product that is up to standard; to a customer, a product that does what it should.
- Total quality management-
Everyone is responsible for management.
- Kitemark
the logo that shows the product is BSI approved.
Profit.
- Gross Profit-
Total revenue minus cost of sales.
- Net Profit-
Gross Profit Minus Expenses.
- Expenses-
day to day running costs of a business.
Economies and Diseconomies of scale
- Productivity-
The efficency of resources; more productivity means more product from the same input.
- Economies of Scale-
Benefits gained from the growth of a business.
- Bulk-
A large amount.
Profit (continued)
- Revenue-
the income of businesses from sales.
- Social Enterprise-
A group set up to help groups or communities, rather than profit e.g Oxfam.
business Costs
- Revenue-
The income of the business from sales.
- Fixed Costs-
those costs that do not vary with production e.g Rent.
Business Costs (continued)
- Variable Costs-
Those costs that do vary with production e.g Raw materials.
- Average Cost-
The cost for each unit of production made by a business.
Break even analysis
- Break even-
Where costs equal revenue and the business is making neither a profit or loss.
Sources of finance.
- Owner's funds-
the money that the owners already have.
- Venture capitalists-
private investors willing to risk money on new businesses e.g dragons den.
Sources of finance (continued)
- Retained profit-
profit kept by the business to help finance growth.
- Overdraft-
Bank permission to withdraw more from an account than deposited.
Sources of finance (continued)
- internal sources of finance-
Finance that comes from within the business.
- External source of finance-
Finance that comes from outside of the business.
- Asset-
Something that a business owns.
Sources of finance (continued)
- Floating a company-
Offering shares in the company to the public, via the stock exchange.
Cash Flow Forecasting.
- Cash Flow-
Money flowing into and out of a business.
- Cash flow statement-
Flows that took place in the past.
Cash flow forecasting (continued)
- Cash Flow forecast-
A prediction of future flows.
- Cash Flow Crisis-
When there is insufficient cash to pay immediate bills.
Profit.
- Gross Profit-
Total revenue minus cost of sales.
- Net Profit-
Gross Profit Minus Expenses.
- Expenses-
day to day running costs of a business.
Profit (continued)
- Revenue-
the income of businesses from sales.
- Social Enterprise-
A group set up to help groups or communities, rather than profit e.g Oxfam.
Profit (continued)
- Profit-
the excess of revenue over costs.
- Profit Margins-
The additional sum added to the cost to provide profit.
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