CAIE AS LEVEL BUSINESS (9609) Review Flashcards

These flashcards cover essential concepts from the CAIE AS Level Business (9609) curriculum, aiding in exam preparation through definitions and key terms.

What are consumer goods?

Physical and tangible goods sold to the general public, including durable goods like cars and non-durable goods like food.

What are consumer services?

Non-tangible products sold to the general public, such as hotel accommodations and insurance services.

Define capital goods.

Physical goods used by an industry to aid in the production of other goods and services, like machines and commercial vehicles.

What is creating value?

Increasing the difference between the cost of purchasing bought-in materials and the price the finished goods are sold for.

Define opportunity cost.

The benefit of the next most desired option which is given up.

What is an entrepreneur?

Someone who takes the financial risk of starting and managing a new venture.

What is a social enterprise?

A business with mainly social objectives that reinvests most of its profits into benefiting society.

What is the triple bottom line?

The three objectives of social enterprises: economic, social, and environmental.

What is included in the primary sector business activity?

Firms engaged in farming, fishing, oil extraction, and industries that extract natural resources.

What defines a private limited company?

A small to medium-sized business owned by shareholders who are often family, which cannot sell shares to the general public.

What is a franchise?

A business that uses the name, logo, and trading systems of an existing successful business.

Define public corporation.

A business enterprise owned and controlled by the state.

What is management by objectives?

A method of coordinating and motivating staff by dividing overall aims into specific targets for each department and employee.

What is a market segment?

A sub-group of a whole market where consumers have similar characteristics.

What is job enrichment?

Aims to use the full capabilities of workers by giving them the opportunity to do more challenging and fulfilling work.

Define cash flow.

The sum of cash payments to a business (inflows) less the sum of cash payments (outflows).

What are economies of scale?

Reductions in a firm's unit (average) costs of production that result from an increase in the scale of operations.

What is job rotation?

Increasing employee flexibility and variety of work by switching from one job to another.

Define liquidity in a business context.

The ability of a firm to pay its short-term debts.

What is a unique selling point (USP)?

The special feature of a product that differentiates it from competitors' products.

Define variable costs.

Costs that vary with output.

What is the purpose of a business plan?

A detailed document giving evidence about a new or existing business to convince external lenders and investors to finance it.