Resit flashcards

What is liquidity?

The ability to pay bills in cash when they fall due or the ability to meet current liabilities with current assets 

What is the acid test ratio?

Current assets-Inventory/Current liabilities

What is the current ratio?

Current assets/Current liabilities 

What is demand?

The quantity of goods/services that a consumer is willing to buy at a given price and at a given time 

What is supply?

The amount that producers are willing/able to produce at a given price/over a given period of time 

What is PED?

Measures the responsiveness of quantity demanded to a change in price. Always negative due to laws of demand. 

What is venture capital?

External source of finance when the business issues shares to a small number of investor(s) in return for a capital injection into the company 

What is a business plan?

A document giving details of a variety of aspects about the business in order to provide a strategic look at the business and to attract investors. It contains details such as the product, costs, revenues,  

cashflow forecasts 

What is break even?

The level of output where the total revenue is equal to the total cost. Fixed costs/Unit contribution 

What is price skimming?

Setting a high price at the launch of a product, to gain the money back from R&D and to take advantage of those wanting to be the first people to purchase. 

What is cashflow?

The level of output where the total revenue is equal to the total cost.  

What is break even point?

Fixed costs/Unit contribution 

What is sales forecasting?

A prediction of the expected level of sales volume/revenue for a business for a future period 

What is online distribution?

The use of electronic systems to sell goods and services 

What is business failure?

When a business is no longer able to operate as a viable going concern and is forced to cease trading 

What is autocratic leadership?

leadership style where the decision-making is best kept with managers, who will direct subordinates with little consultation 

What is democratic leadership?

A type of leadership style in which members of the group take a participative role in the decision-making process.bGroup members are encouraged to share ideas and communication is two-ways 

What is laissez-faire?

A leadership style where employees are encouraged to make their own decisions within certain limits 

 

What is paternalistic leadership?

Involves managers acting like a parent figure, making decisions for employees but also looking after their needs.