IGCSE Business Studies Exam Graded
A+ (Edexcel)
Advertising - ANSWER-Communication between a business and its customers where
messages are placed in the media to encourage the purchase of products.
Agent or broker - ANSWER-An intermediary that brings together buyers and sellers.
Anti-competitive practices or restricteive trade practices - ANSWER-An attempt by firms
to prevent or restrict competition
Assets - ANSWER-Resources used or owned by the business in production
Assisted areas - ANSWER-Areas that are designated by the UK or EU as having
economic problems and are eligible for support in a variety of forms
Auditing - ANSWER-An accounting procedure which checks thoroughly the accuracy of
a company's accounts
Authority - ANSWER-The right to command and make decisions
Balance of trade or visible balance - ANSWER-The difference between visible exports
and visible imports
Balance sheet - ANSWER-A summary at a point in time of business assets, liabilities
and capital.
Barriers to entry - ANSWER-Obstacles that make it difficult for new firms to enter a
market
Batch production - ANSWER-A method which involves completing one operation at a
time on all units before performing the nest.
Below-the-line promotion - ANSWER-Any promotion that does not involve using the
media.
Bonus systems - ANSWER-A payment in addition to the basic wage for reaching targets
or in recognition for service
Boston Matrix - ANSWER-A 2 x 2 matrix which describes products according to the
market share they enjoy and whether the market has any potential for growth.
Brand names - ANSWER-The name of a product which consumers see as being
different from those of rivals.
, Break even - ANSWER-The level of output where total costs and total revenue are
exactly the same. Neither a profit nor loss is made.
Break-even chart - ANSWER-A graph which shows total revenue. The break-even point
is where total cost and revenue intersect
Brownfield site - ANSWER-Areas of land which were once used for urban development
Budget - ANSWER-A plan that shows how much money a business expects to spend or
receive in a specified period
Business - ANSWER-An organisation which produces goods and services.
Business ethics - ANSWER-Ideas, in business, about what is morally right or wrong
Capital - ANSWER-A source of funds provided by the owners of the business to buy
assets
Capital-intensive production - ANSWER-Production methods that make more use or
machinery relative to labour
Cash flow - ANSWER-The flow of money into and out of a business
Cash flow forecast - ANSWER-The prediction of all expected receipts and expenses of
a business over a future time period which shows the expected cash balance at the end
of each month
Cash inflows - ANSWER-The flow if money into a business
Cash outflows - ANSWER-The flow of money out of a business
Cell production - ANSWER-Involves producing a 'family of products' in a small self-
contained unit (a cell) within a factory.
Chain of command - ANSWER-The route through which orders are passed down the
hierarchy
Commission - ANSWER-A payment based on the value of sales, usually a percentage
of sales made.
Communication - ANSWER-The sending and recieving of messages
Communication barriers - ANSWER-Things that get in the way of communication
A+ (Edexcel)
Advertising - ANSWER-Communication between a business and its customers where
messages are placed in the media to encourage the purchase of products.
Agent or broker - ANSWER-An intermediary that brings together buyers and sellers.
Anti-competitive practices or restricteive trade practices - ANSWER-An attempt by firms
to prevent or restrict competition
Assets - ANSWER-Resources used or owned by the business in production
Assisted areas - ANSWER-Areas that are designated by the UK or EU as having
economic problems and are eligible for support in a variety of forms
Auditing - ANSWER-An accounting procedure which checks thoroughly the accuracy of
a company's accounts
Authority - ANSWER-The right to command and make decisions
Balance of trade or visible balance - ANSWER-The difference between visible exports
and visible imports
Balance sheet - ANSWER-A summary at a point in time of business assets, liabilities
and capital.
Barriers to entry - ANSWER-Obstacles that make it difficult for new firms to enter a
market
Batch production - ANSWER-A method which involves completing one operation at a
time on all units before performing the nest.
Below-the-line promotion - ANSWER-Any promotion that does not involve using the
media.
Bonus systems - ANSWER-A payment in addition to the basic wage for reaching targets
or in recognition for service
Boston Matrix - ANSWER-A 2 x 2 matrix which describes products according to the
market share they enjoy and whether the market has any potential for growth.
Brand names - ANSWER-The name of a product which consumers see as being
different from those of rivals.
, Break even - ANSWER-The level of output where total costs and total revenue are
exactly the same. Neither a profit nor loss is made.
Break-even chart - ANSWER-A graph which shows total revenue. The break-even point
is where total cost and revenue intersect
Brownfield site - ANSWER-Areas of land which were once used for urban development
Budget - ANSWER-A plan that shows how much money a business expects to spend or
receive in a specified period
Business - ANSWER-An organisation which produces goods and services.
Business ethics - ANSWER-Ideas, in business, about what is morally right or wrong
Capital - ANSWER-A source of funds provided by the owners of the business to buy
assets
Capital-intensive production - ANSWER-Production methods that make more use or
machinery relative to labour
Cash flow - ANSWER-The flow of money into and out of a business
Cash flow forecast - ANSWER-The prediction of all expected receipts and expenses of
a business over a future time period which shows the expected cash balance at the end
of each month
Cash inflows - ANSWER-The flow if money into a business
Cash outflows - ANSWER-The flow of money out of a business
Cell production - ANSWER-Involves producing a 'family of products' in a small self-
contained unit (a cell) within a factory.
Chain of command - ANSWER-The route through which orders are passed down the
hierarchy
Commission - ANSWER-A payment based on the value of sales, usually a percentage
of sales made.
Communication - ANSWER-The sending and recieving of messages
Communication barriers - ANSWER-Things that get in the way of communication
