Cambridge International AS & A Level Business 9609 Vocabulary

Vocabulary flashcards covering key concepts, financial ratios, command words, learner attributes, and assessment objectives from the Cambridge International AS & A Level Business 9609 syllabus.

Change

A key concept representing the idea that change is the only constant, where new enterprises and opportunities are created in response to changes in the external environment or within a business.

Context

A key concept stating that context is the basis for every business decision, meaning what may be a suitable solution in one situation may be unsuitable in another.

Decision-making

A key concept involving how stakeholders in businesses apply knowledge to a scenario, analyse data, evaluate arguments, and come to a decision.

Enterprise

A key concept defined as the ability to seek out and successfully develop business opportunities.

Innovation

A key concept enabling a business to re-invent itself and stay ahead of competition through product development, more efficient processes, and finding better ways to do business.

Strategy

A key concept concerned with knowing where a business is, where it wants to get to, and how it is going to get there by analysing situations and making effective choices.

Cambridge Learner Attributes

The five key characteristics developed in Cambridge students: confident, responsible, reflective, innovative, and engaged.

Factors of Production

The four essential resources needed for business activity: land, labour, capital, and enterprise.

Triple Bottom Line

A framework for corporate social responsibility (CSR) that measures performance across economic (financial), social, and environmental objectives.

SMART Objectives

Business objectives that are Specific, Measurable, Achievable, Realistic, and Time-limited.

Goleman's Four Competencies of Emotional Intelligence

The four core competencies of emotional intelligence (EQ): self-awareness, social awareness, self-management, and social skills.

ISO 9001:2015

The internationally recognised standard for quality management systems under which Cambridge International's provision of education programmes and qualifications is independently certified.

Current Ratio

A liquidity ratio calculated as $\frac{\text{Current assets}}{\text{Current liabilities}}$.

Acid Test Ratio

A liquidity ratio calculated as $\frac{\text{Current assets} - \text{inventory}}{\text{Current liabilities}}$.

Gross Profit Margin (%)

A profitability ratio calculated as $\frac{\text{Gross profit}}{\text{Revenue}} \times 100$.

Operating Profit Margin (%)

A profitability ratio calculated as $\frac{\text{Profit from operations}}{\text{Revenue}} \times 100$.

Return on Capital Employed (%)

A profitability ratio calculated as $\frac{\text{Profit from operations}}{\text{Capital employed}} \times 100$, where capital employed equals issued shares + reserves + non-current liabilities.

Trade Receivables Turnover (days)

A financial efficiency ratio calculated as $\frac{\text{Trade receivables}}{\text{Credit sales}} \times 365\,\text{days}$.

Trade Payables Turnover (days)

A financial efficiency ratio calculated as $\frac{\text{Trade payables}}{\text{Credit purchases}} \times 365\,\text{days}$.

Rate of Inventory Turnover (times)

A financial efficiency ratio calculated as $\frac{\text{Cost of sales}}{\text{Average inventory}}$.

Gearing Ratio (%)

A capital structure ratio calculated as $\frac{\text{Non-current liabilities}}{\text{Capital employed}} \times 100$.

Price/Earnings Ratio

An investment ratio calculated as $\frac{\text{Market price per share}}{\text{Earnings per share}}$.

Dividend Yield (%)

An investment ratio calculated as $\frac{\text{Dividend per share}}{\text{Market price per share}} \times 100$.

Dividend Cover

An investment ratio calculated as $\frac{\text{Profit for the year}}{\text{Annual dividend}}$.

Accounting Rate of Return (ARR)

An investment appraisal metric calculated as $\text{ARR} = \left(\frac{\text{average profit}}{\text{average investment}}\right) \times 100$.

Command Word: Advise

Write down a suggested course of action in a given situation.

Command Word: Analyse

Examine in detail to show meaning, identify elements and the relationship between them.

Command Word: Assess

Make an informed judgement.

Command Word: Calculate

Work out from given facts, figures or information.

Command Word: Define

Give precise meaning.

Command Word: Evaluate

Judge or calculate the quality, importance, amount, or value of something.

Command Word: Explain

Set out purposes or reasons, make the relationships between things clear, or say why and/or how and support with relevant evidence.

Command Word: Identify

Name, select, or recognise.

Command Word: Justify

Support a case with evidence or argument.

AO1 Knowledge and Understanding

Assessment objective requiring candidates to demonstrate knowledge and understanding of business concepts, terms and theories.

AO2 Application

Assessment objective requiring candidates to apply knowledge and understanding of business concepts, terms and theories to problems and issues in a variety of familiar and unfamiliar business situations and contexts.

AO3 Analysis

Assessment objective requiring candidates to analyse business problems, issues and situations by searching for causes, impacts, distinguishing evidence from opinion, and drawing valid inferences.

AO4 Evaluation

Assessment objective requiring candidates to evaluate evidence in order to make reasoned judgements, present substantiated conclusions, and make recommendations for action.