GCSE Business Paper 1 Vocabulary Flashcards

Vocabulary flashcards covering key business terms, legal structures, production techniques, and financial measures from GCSE Business Paper 1.

Job production

A production method that allows for the customisation of products to meet specific customer requirements.

Limited liability

A legal protection enjoyed by business structures such as Private Limited Companies (Ltd) and Public Limited Companies (Plc), where owners are not personally responsible for business debts.

Average unit costs

The total cost of producing one unit of output, calculated as: $\frac{\text{Total fixed costs} + \text{Total variable costs}}{\text{Number of units produced}}$

Just-in-time (JIT)

A lean production technique where a business only produces products or orders supplies when a customer has placed an order.

Opportunity cost

The value or benefit of the next best alternative given up when making a decision.

Buffer stock

A surplus quantity of stock held by a business to manage unpredictable spikes in demand or delays in supply.

Job share

An employment arrangement where two workers share the hours and responsibilities of a single full-time role.

Commission

A financial incentive where employees are paid a percentage based on the value of sales they generate.

Public Limited Company (Plc)

A legal business structure that can sell its shares to the general public on the stock market.

Decentralisation

A management structure in which decision-making authority is delegated away from central authority to lower levels or individual departments.