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Other Lesson: Unit 1 Business Studies AQA AS

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1 Business Studies Unit


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List Items 
Card # English English Image
1 A difference between budgeted and actual figures that is damaging to the firm`s profit (e.g. costs up/revenue down) Adverse Variance
2 Yardsticks against which success (or the lack of it) can be measured Criteria
3 Passing authority down the hierarchy Delegeted
4 A difference between budgeted and actual figures that boosts a firm`s profit (e.g. revenue up or down). Favorable variance
5 Payments that are long overdue and cannot be expected to be received. Bad debts
6 The length of time allowed for payment Credit period
7 Obtaining part-payment from a factoring company of the amount owed. The factory company will then collect the debt & pass over the balance of the payment Factoring
8 A contract that, at the same time, spells the freehold to a piece of property and buys back the leasehold (giving up tomorrow`s asset for today`s cash). Sale & leaseback
9 These come within the control of the management (e.g. the quality of the materials used in production). Internal reasons
10 Profit as a percentage of the capital a firm invests in a project. Return on capital
11 An optimistic estimate of the best possible outcome (e.g. if sales prove higher than expected). Best Case
12 Estimating future monthly cash in flows and outflows to find out the netcash flow Cash flow forecast
13 When cash outflows are greater that cash inflows. Negative cash flow
14 Short-term borrowing from a bank; the business borrows only as much as it needs to cover its daily cash shortfall. Overdraft
15 A pessimistic estimate assuming the worst possible outcome (e.g. sales are very disappointing). Worst case
16 Setting a minimum figure on what a manager can spend over a period of time; this is to control costs. Expenditure budget
17 Setting a minimum figure for the revenue to be generated by a product, department of a manager Income budget
18 Setting a minimum figure for the profit to be achieved over a period of time. Profit budget
19 The precise way in which profit will be generated from a apecific business idea. Business model
20 Making a company`s shares widely available for purchase on the stock market Floated
21 People who start up a business in pursuit of purely social objectives. Social entrepreneurs

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