Cambridge IGCSE Business Studies
Questions and Answers
Accountants - ANSWER-Professionally qualified people who have responsibility for
keeping accurate accounts and for producing final accounts.
Accounts - ANSWER-Financial records of a business's transactions.
Added Value - ANSWER-The difference between a product's selling price and the cost
of bought in materials.
Advertising - ANSWER-Paid-for communication with customers: informative, persuasive
- creating an image that increases customer desire for it.
Agent - ANSWER-Appointed to deal with the distribution of products - often in another
country.
Appraisal - ANSWER-Assesing the effectiveness of employees (important for
performance-related pay).
Assets - ANSWER-These are items of value owned by the business.
Autocratic Leadership - ANSWER-Where the manager is in charge of the business,
takes all decisions and expects orders to be followed.
Average costs - ANSWER-Total costs divided by number of units sold/produced, also
cost per unit.
Balance of payments - ANSWER-This records the difference between a country's
exports and imports.
Balance sheet - ANSWER-Shows the value of a business's assets and liabilities at a
particular point in time. Sometimes referred to as "Statement of financial position".
Batch production - ANSWER-A quantity of one product is made, then a quantity of
another item will be produced.
Bonus - ANSWER-Additional payment to workers, above the basic wage/ salary, as a
reward for good work.
Brand Image - ANSWER-The identity of a product that consumers can recognize and
which gives it a "personality" distinct from other products.
, Brand Name - ANSWER-The unique name of a product that distinguishes it from other
brands.
Break-even chart - ANSWER-Graphs that show how costs and revenue of a product
change at different output levels.
Break-even output - ANSWER-The quantity that mist be sold for total costs to equal
total revenue.
Buffer Inventory Level - ANSWER-Inventory held to deal with unexpected changes
Business - ANSWER-An organisation that combines factors of production to make
goods and services to satisfy people's wants and needs.
Business Cycle - ANSWER-The four stages en economy goes through over a period of
time, as an economy does not grow at a steady rate.
Business Objectives - ANSWER-The aims or targets that a business work towards.
Business plan - ANSWER-The objectives and details of the operations, finance and
owners of a new business.
Capital employed - ANSWER-The total value of capital used in a business.
Capital Employed - ANSWER-This is the shareholder's equity plus non-current liabilities
and is the long term and permanent capital invested in a business.
Capital expenditure - ANSWER-The money spent on non-current assets lasting more
than one year.
Cash Flow Cycle - ANSWER-Shows the stages between paying out cash for labour,
materials and receiving cash from the sale of goods.
Cash Flow forecasts - ANSWER-Estimate of future cash inflows and outflows of a
business, usually on a monthly basis. This shows the expected cash balance at the end
of each month.
Cash inflows - ANSWER-Sum of money received by a business during a period of time.
Cash outflows - ANSWER-Sum of money paid out by a business during a period of
time.
Chain of command - ANSWER-The route taken by instructions passed down from upper
to lower management.
Questions and Answers
Accountants - ANSWER-Professionally qualified people who have responsibility for
keeping accurate accounts and for producing final accounts.
Accounts - ANSWER-Financial records of a business's transactions.
Added Value - ANSWER-The difference between a product's selling price and the cost
of bought in materials.
Advertising - ANSWER-Paid-for communication with customers: informative, persuasive
- creating an image that increases customer desire for it.
Agent - ANSWER-Appointed to deal with the distribution of products - often in another
country.
Appraisal - ANSWER-Assesing the effectiveness of employees (important for
performance-related pay).
Assets - ANSWER-These are items of value owned by the business.
Autocratic Leadership - ANSWER-Where the manager is in charge of the business,
takes all decisions and expects orders to be followed.
Average costs - ANSWER-Total costs divided by number of units sold/produced, also
cost per unit.
Balance of payments - ANSWER-This records the difference between a country's
exports and imports.
Balance sheet - ANSWER-Shows the value of a business's assets and liabilities at a
particular point in time. Sometimes referred to as "Statement of financial position".
Batch production - ANSWER-A quantity of one product is made, then a quantity of
another item will be produced.
Bonus - ANSWER-Additional payment to workers, above the basic wage/ salary, as a
reward for good work.
Brand Image - ANSWER-The identity of a product that consumers can recognize and
which gives it a "personality" distinct from other products.
, Brand Name - ANSWER-The unique name of a product that distinguishes it from other
brands.
Break-even chart - ANSWER-Graphs that show how costs and revenue of a product
change at different output levels.
Break-even output - ANSWER-The quantity that mist be sold for total costs to equal
total revenue.
Buffer Inventory Level - ANSWER-Inventory held to deal with unexpected changes
Business - ANSWER-An organisation that combines factors of production to make
goods and services to satisfy people's wants and needs.
Business Cycle - ANSWER-The four stages en economy goes through over a period of
time, as an economy does not grow at a steady rate.
Business Objectives - ANSWER-The aims or targets that a business work towards.
Business plan - ANSWER-The objectives and details of the operations, finance and
owners of a new business.
Capital employed - ANSWER-The total value of capital used in a business.
Capital Employed - ANSWER-This is the shareholder's equity plus non-current liabilities
and is the long term and permanent capital invested in a business.
Capital expenditure - ANSWER-The money spent on non-current assets lasting more
than one year.
Cash Flow Cycle - ANSWER-Shows the stages between paying out cash for labour,
materials and receiving cash from the sale of goods.
Cash Flow forecasts - ANSWER-Estimate of future cash inflows and outflows of a
business, usually on a monthly basis. This shows the expected cash balance at the end
of each month.
Cash inflows - ANSWER-Sum of money received by a business during a period of time.
Cash outflows - ANSWER-Sum of money paid out by a business during a period of
time.
Chain of command - ANSWER-The route taken by instructions passed down from upper
to lower management.
