Business Studies - AS Level Key Words (2) 0.0 / 5 ? Business StudiesKey WordsASAQA Created by: taylorukCreated on: 15-05-19 09:07 Delayering Getting rid of a layer of employees to save on costs. 1 of 29 Profit Money a business makes from selling goods and services (ie. after costs have been taken off) 2 of 29 Revenue Money a business makes from selling goods and services (ie. ignoring any costs) 3 of 29 Cash flow The money actually going in and out of the business 4 of 29 Direct Costs Costs linked to a particular product (ie. materials for that product) 5 of 29 Indirect Costs Costs a business has to pay no matter the product 6 of 29 Fixed costs Costs the business has to pay regardless of the product (ie. rent) 7 of 29 Variable costs Similar to direct costs shown as a cost that varies with the level of output. 8 of 29 Semi-variable costs A mixture of fixed and variable costs. 9 of 29 Unit costs The cost to make a product for the business (ie. materials) 10 of 29 Inflows The money "Actually" going into the business 11 of 29 Outflows The money "actually" going out of the business 12 of 29 Debt Factoring A way companies are able of receiving payment, while offering credit to their customers. 13 of 29 Income Budget Minimum revenue over a period of time expected by a business. 14 of 29 Expenditure budget Maximum target for costs which will only be exceeded for a good reason 15 of 29 Profit Budget The combination of the Expenditure Budget and Income Budget. 16 of 29 Private sector Any business owned by 1 or more people and NOT government run. 17 of 29 Public sector Any business / organisation which is owned / controlled by the government (ie. Army, NHS) 18 of 29 Sole Trader Only one trader with unlimited liability. 19 of 29 Partnership At least 2 owners referred to as partners, usually all have unlimited liability. 20 of 29 Unlimited Liability You are personally liable for the business if it is sued as a individual. 21 of 29 Unincorporated business In the eyes of the law the owners and business are the same. 22 of 29 Incorporated business In the Eyes of the law the owners and business are separate 23 of 29 Limited liability When the company and its owners are lawfully separate 24 of 29 Private Limited Company (LTD) Only sells shares to people who the business wants. 25 of 29 Public Limited Company (PLC) Sells shares freely on the stock exchange to buyers. 26 of 29 Lean Production When managers reduce waste and therefore operations become more efficient 27 of 29 Mass Customisation The term for producing on a large scale while still enabling individual customer preferences to be met. 28 of 29 Market Capitalisation The total value of issued shares of a public limited company. 29 of 29
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