Business Vocabulary Review Flashcards

A collection of essential vocabulary terms and definitions from the business course, useful for exam preparation.

Break-even analysis

Uses cost and revenue data to determine the break-even point of production.

Break-even point

The level of output at which total costs equal total revenue, when neither a profit nor a loss is made.

BRICS

The acronym for five rapidly developing economies: Brazil, Russia, India, China, and South Africa.

Budget

A detailed financial plan for the future.

Budget deficit

The value of government spending exceeds revenue from taxation.

Budget holder

The individual responsible for the setting and achievement of a budget.

Budget surplus

The value of taxation revenue exceeds the value of government spending.

Budgeting

Planning future activities by establishing performance targets, especially financial ones.

Buffer inventory

Minimum inventory level that should be held to ensure continuous production.

Business aim

A long-term goal that a business hopes to achieve.

Business cycle

Regular swings in output measured by real GDP, varying from boom to recession.

Business investment

Expenditure by businesses on capital equipment, new technology, and research and development.

Business plan

A written document that describes a business, its objectives, strategies, market, and financial forecasts.

Capacity shortage

When demand for a business's products exceeds production capacity.

Capacity utilisation

The proportion of maximum output capacity currently being achieved.

Cash flow

The sum of cash payments to a business less the sum of cash payments from the business.

Centralisation

Keeping all important decision-making powers within the head office.

Change management

Planning, implementing, controlling, and reviewing the movement of an organisation to a new state.

Collusion

Businesses agree to restrict competition by fixing prices and sharing contracts.

Consumer durable

A manufactured product expected to last for a reasonably long time, such as a car.

Contingency plan

A plan for preparing an organisation's resources for unlikely events.

Corporate culture

The values, attitudes, and beliefs that affect how people interact in an organisation.

Credit control

Monitoring debts to ensure that credit periods are not exceeded.

Deflation

A fall in the average price level of goods and services.

Employee appraisal

The process of assessing the effectiveness of an employee against pre-set objectives.

Market share

Sales of the business as a proportion of total market sales.

Market segmentation

The identification of different groups of customers with common needs in a market.

Outsourcing

Using another business to undertake a part of the production process.

Partnership

A business formed by two or more people sharing capital and responsibilities.

Product differentiation

Unique qualities of a product that distinguish it from competitors' products.

SWOT analysis

A strategic analysis identifying internal strengths and weaknesses, and external opportunities and threats.

Vertical integration

Integration with a business in the same industry.

Zero defects

A way of thinking to ensure that products meet customer expectations every time.