IGSCE vocabulary edexcel business

What is above-the-line promotion?

Advertising using mass media such as TV, radio, and newspapers.

What does the role of an accounts clerk involve?

Maintaining financial records as an office worker.

What is the acid test ratio?

A measure of liquidity calculated as (Current assets - Stock) / Current liabilities.

What are adjustments in accounting?

Changes to accounts, such as profits from asset sales.

Define advertising in a business context.

Paid communication used to promote products through various media.

What is the role of an agent/broker?

An intermediary that connects buyers and sellers.

What are anti-competitive practices?

Tactics used to restrict competition, like price-fixing.

What is an apprenticeship?

Training that combines on-the-job experience with education.

What does arrears refer to?

Overdue payments owed by or to a business.

What is an assembly plant?

A factory where parts are assembled into finished goods.

Define assets in a business context.

Resources owned by a business, such as cash or machinery.

What are assisted areas?

Regions that receive economic support from the government.

What is an audit?

An official inspection of financial records for their accuracy.

What does auditing involve?

A thorough check of accounting accuracy.

Define automation in industry.

The use of machines or computers instead of human labor.

What does automotive relate to?

It relates to motor vehicles.

What is the balance of trade?

The difference between visible exports and imports.

What is a bank overdraft?

A short-term borrowing option up to an agreed limit.

What are barriers to entry?

Obstacles that prevent new firms from entering a market.

What is batch production?

Producing groups of items simultaneously.

Define below-the-line promotion.

Non-media promotions such as discounts and public relations.

What is a bid in a business context?

An offer to buy something at a set price.

What are bonus systems?

Extra payments made for meeting targets or providing good service.

What is the Boston Matrix?

A model that classifies products by market share and growth potential.

What does a break-even chart show?

A graph illustrating costs, revenue, and the break-even point.

What is the break-even point?

The output level where total revenue equals total costs.

What are brownfield sites?

Land that has previously been used for urban development.

What is a budget?

A financial plan for income and expenditure.

What are budgetary measures?

Government actions aimed at influencing the economy.

What is bulk breaking?

Dividing large shipments into smaller quantities for resale.

What does bulk buying mean?

Purchasing in large quantities to achieve discounts.

Define business in general.

An organization that produces goods or services.

What is Business to Consumers (B2C)?

Selling goods directly to end users.

What is capital employed?

The total funds invested in a business.

Define capital in economic terms.

Money invested by owners or shareholders.

What is capital-intensive production?

Production that relies more on machinery than on labor.

What does cash flow refer to?

The movement of money into and out of a business.

What is a cash flow forecast?

A prediction of future cash inflows and outflows.

Define cash inflow.

Money entering a business.

What is cash outflow?

Money leaving a business.

What characterizes a centralized organization?

Decisions are made at the top level.

What is a certificate of incorporation?

A legal document required to form a company.

What does a chairperson do?

Leads meetings and directs an organization.

What are charities?

Non-profit organizations that aid social causes.

What is a closing cash balance?

Expected cash remaining at the end of the month.

What is commission in a sales context?

Payment based on a percentage of sales.

What are commodities?

Raw materials that are traded, such as oil or wheat.

What are communication channels?

Routes for information flow within a business.

What is competition-based pricing?

Setting prices based on competitors' pricing.

What is Computer-Aided Design (CAD)?

Using software to aid in product design.

What does Computer-Aided Manufacturing (CAM) refer to?

Automating production using computers.

What is Computer Integrated Manufacturing (CIM)?

A system where computers control the entire production process.

Define Computer Numerically Controlled Machines (CNCs).

Machines programmed to follow computer instructions.

What is a consumer cooperative?

A business that is owned by its customers.

What are consumer goods?

Products intended for personal use.

What are consumer panels?

Groups that provide feedback on products over time.

What are contracts of employment?

Legal agreements between employer and employee.

What is a cooperative?

A business owned and run by its members.

What is cost-plus pricing?

Setting prices by adding a markup to production costs.

What are costs in business terms?

Expenses incurred in running a business.

What are coupons?

Vouchers offering discounts or free gifts.

Define crowdfunding.

Raising capital from numerous small investors online.

What are currency reserves?

Foreign currency held by a country.

What are current assets?

Assets that can be converted to cash within a year.

What are current liabilities?

Debts that are due within a year.

What does the current ratio measure?

Liquidity measured as Current assets ÷ Current liabilities.

What is de-industrialization?

The decline in manufacturing activity.

What is a debenture?

A long-term loan secured against assets.

What characterizes a decentralized organization?

Decision-making is spread across different levels.

What is a deed of partnership?

A legal agreement between partners.

What is demographic segmentation?

Dividing markets based on age, gender, and income.

What does a design brief entail?

Instructions for a new product's desired features.

What is destroyer or predatory pricing?

Selling below cost to eliminate competition.

What is direct mail?

Advertising material sent via postal mail.

What is direct selling?

Selling products directly to consumers without intermediaries.

Define diseconomies of scale.

Rising average costs due to excessive growth.

What does distributed profit refer to?

Profits that are paid out to business owners.

What is a distribution channel?

The path from producer to consumer.

What does it mean to diversify?

Expanding into new products or markets.

What are dividends in a business context?

Shares of profits distributed to shareholders.

What is division of labor?

Specializing employees in specific tasks.

What does downsizing mean?

Reducing workforce or capacity.

What is a downturn?

A period of declining business activity.

What is downward communication?

Messages that flow from top to lower levels in an organization.

What are drawings in business terms?

Personal withdrawals made by the business owner.

What is dumping?

Selling goods abroad at prices below cost.

What is e-commerce?

Selling goods and services online.

Who are early adopters?

Customers who are among the first to buy new products.

What are economies of scale?

Cost advantages that occur with large-scale production.

What are emerging economies?

Rapidly growing markets that come with high risk.

What is an employment tribunal?

A court that resolves disputes between employers and employees.

What does enterprise mean?

Entrepreneurial activity or initiative.

Who is considered an entrepreneur?

A person who starts and runs a business, taking on risks.

What is an exchange rate?

The value of one currency in comparison to another.

What are excise duties?

Taxes imposed on specific goods like alcohol and tobacco.

Who are executives in a business?

Senior managers responsible for major decisions.

What are exports?

Goods and services that are sold to overseas markets.

What does exposure refer to in marketing?

The advertising or publicity a product receives.

What are extension strategies?

Methods used to prolong a product's life cycle.

What does external communication entail?

Business messaging directed to outsiders, like customers.