GCSE business studies definitionsWatch
Absenteeism: worker's non-attendance at work without a good reason
Acid test ratio: the ratio between liquid assets and current liabilities
Adding value: Selling a product for more than it cost to produce
Advertising: This is paid-for communicate that uses printed and visual media to inform and persuade consumers to buy the product
Annual General Meeting(AGM): A meeting for shareholders that limited companies must hold once a year.
Appreciation: A currency is said to appreciate if the value of the currency rises in relation to another.
Appropriation account: records the distribution of profit after tax(dividend and retained profits)
Assets: Resources that are owned by a business
Autocratic leadership: a leadership style where the leader makes all the decisions
Average costs : cost of producing a single unit of output
Balance of payments: The difference between the value of imports and exports of a country over a period of a year
Balance sheet: An accounting statement which records the assets, liabilities and owner's equity invested in the business at a particular date
Bank loan: A provision of finance by a bank which will be repaid with interest over an agreed period of time
Barriers to trade: Usually taxes, quotas or bans that one country places on goods and services to prevent or increase the price of goods and services.
Batch production: Production of goods in batches, each batch passes through 1 stage of production before moving into the next stage.
Below-the-line promotion: Promotion that is not paid-for communication but uses incentives to encourage consumers to buy products.
Bonus: An additional reward paid to workers for achieving targets set by managers.
Brand: A name, image or symbol that distinguishes a product from competitors products.
Brand image: The general impression of a product held by consumers
Break-even: The level of output where revenue equals total costs, the business is making neither profit nor loss.
Business activity: Process of producing goods and services to satisfy consumer demand.
Business environment: Combination of internal and external factors that influence the operations of a business
Business plan: A detailed written document outlining the purpose and aims of a business, often used to persaude banks and lenders to finance a business operation
Business start-up: Newly formed business, usually small but many grow bigger.