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Other Lesson: Unit 1 Business Studies AQA AS

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Created by: mattashdene
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1 Business Studies Unit


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

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