Edexcel Business A Level – Theme 1 Key Words Exam with Questions and
Answers Essy Pass
Added value - ✔✔✔-the difference between the cost of purchasing raw materials and the price
the finished goods are sold for
Adding Value - ✔✔✔-Difference between selling price and costs of its material inputs.
Autocratic - ✔✔✔-Decision making is kept with managers who will direct subordinates with
little consultation
Benefits of online retailing - ✔✔✔-Shop is open round the clock.
Orders can be taken automatically without the need for staff.
Shop can reach international markets easily.
Bias - ✔✔✔-If the sample includes disproportionate number of people from a particular market
segment.
Boston Matrix - ✔✔✔-Analyses company's products in terms of market share and growth
potential.
Brand - ✔✔✔-A characteristic/name/symbol that differentiates/distinguishes a product from
other suppliers.
Business Objectives. - ✔✔✔-Goals and Targets set by the business to achieve its aim/mission in
the short/medium term.
Business To Business - ✔✔✔-Process of selling products or services to other businesses.
Business To Consumer - ✔✔✔-Involves selling directly to customers who are buying products or
services for personal use.
,Edexcel Business A Level – Theme 1 Key Words Exam with Questions and
Answers Essy Pass
Cash Cow - ✔✔✔-Large share of a slow growing or static market. Sells very well and doesn't
require much promotion.
Centralised Structure - ✔✔✔-All decision-making is at the top of the hierarchy.
Collective Bargaining - ✔✔✔-Discussions between employers and representatives of
employees, often a trade union.
Competition - ✔✔✔-Lower prices, better quality, more choice, innovation, greater efficiency.
Competitive Advantage - ✔✔✔-Having an edge over rival products. May be based on low costs
and keen prices or an innovative design feature.
Competitive Pricing - ✔✔✔-Charging about the same as, or a little less than, the prices of
competing products.
consultation - ✔✔✔-Employee feedback is sought when making decisions
corporate branding - ✔✔✔-Strategy that encourages a new product to be associated with a
well-established company name. Can be used with any product that a business sells or a brand
that represents the entire business.
Cost efficiency (Objective) - ✔✔✔-To control costs so that the maximum value of outputs is
achievable with the lowest value of inputs. This is necessary to support an objective of profit
maximisation.
, Edexcel Business A Level – Theme 1 Key Words Exam with Questions and
Answers Essy Pass
Cost minimisation - ✔✔✔-A strategy of achieving the most cost-effective way of delivering
goods and services to the required level of quality
Cost Plus Pricing - ✔✔✔-Adding certain percentage to the average total cost of the product.
Costs of online retailing - ✔✔✔-Issues with sending goods back may put customers off.
Issues with online security worries put off older customers not keen to share their bank details.
Very competitive market, hard to drive traffic to sites.
customer loyalty - ✔✔✔-when customers buy a product from the same supplier again and
again - sometimes paying even more for it than they would for a competitive product
Customer satisfaction (objective) - ✔✔✔-To ensure that goods and services meets the needs
and expectations of the customer. Helps to build a customer loyalty and repeat business
maximizing sales in the long run.
Decentralised Structure - ✔✔✔-Businesses have moved the decision making process away from
a central head office and spread it throughout the organisation.
Delayering - ✔✔✔-Reducing the amount of middle managers
Delegation - ✔✔✔-Allowing decisions to be taken at a lower level.
Demand - ✔✔✔-the quantity of a good or service that consumers are willing and able to buy at
a given price in a given period of time
Democratic - ✔✔✔-Leading a business based on decisions agreed by a majority. Consults with
subordinates.
Answers Essy Pass
Added value - ✔✔✔-the difference between the cost of purchasing raw materials and the price
the finished goods are sold for
Adding Value - ✔✔✔-Difference between selling price and costs of its material inputs.
Autocratic - ✔✔✔-Decision making is kept with managers who will direct subordinates with
little consultation
Benefits of online retailing - ✔✔✔-Shop is open round the clock.
Orders can be taken automatically without the need for staff.
Shop can reach international markets easily.
Bias - ✔✔✔-If the sample includes disproportionate number of people from a particular market
segment.
Boston Matrix - ✔✔✔-Analyses company's products in terms of market share and growth
potential.
Brand - ✔✔✔-A characteristic/name/symbol that differentiates/distinguishes a product from
other suppliers.
Business Objectives. - ✔✔✔-Goals and Targets set by the business to achieve its aim/mission in
the short/medium term.
Business To Business - ✔✔✔-Process of selling products or services to other businesses.
Business To Consumer - ✔✔✔-Involves selling directly to customers who are buying products or
services for personal use.
,Edexcel Business A Level – Theme 1 Key Words Exam with Questions and
Answers Essy Pass
Cash Cow - ✔✔✔-Large share of a slow growing or static market. Sells very well and doesn't
require much promotion.
Centralised Structure - ✔✔✔-All decision-making is at the top of the hierarchy.
Collective Bargaining - ✔✔✔-Discussions between employers and representatives of
employees, often a trade union.
Competition - ✔✔✔-Lower prices, better quality, more choice, innovation, greater efficiency.
Competitive Advantage - ✔✔✔-Having an edge over rival products. May be based on low costs
and keen prices or an innovative design feature.
Competitive Pricing - ✔✔✔-Charging about the same as, or a little less than, the prices of
competing products.
consultation - ✔✔✔-Employee feedback is sought when making decisions
corporate branding - ✔✔✔-Strategy that encourages a new product to be associated with a
well-established company name. Can be used with any product that a business sells or a brand
that represents the entire business.
Cost efficiency (Objective) - ✔✔✔-To control costs so that the maximum value of outputs is
achievable with the lowest value of inputs. This is necessary to support an objective of profit
maximisation.
, Edexcel Business A Level – Theme 1 Key Words Exam with Questions and
Answers Essy Pass
Cost minimisation - ✔✔✔-A strategy of achieving the most cost-effective way of delivering
goods and services to the required level of quality
Cost Plus Pricing - ✔✔✔-Adding certain percentage to the average total cost of the product.
Costs of online retailing - ✔✔✔-Issues with sending goods back may put customers off.
Issues with online security worries put off older customers not keen to share their bank details.
Very competitive market, hard to drive traffic to sites.
customer loyalty - ✔✔✔-when customers buy a product from the same supplier again and
again - sometimes paying even more for it than they would for a competitive product
Customer satisfaction (objective) - ✔✔✔-To ensure that goods and services meets the needs
and expectations of the customer. Helps to build a customer loyalty and repeat business
maximizing sales in the long run.
Decentralised Structure - ✔✔✔-Businesses have moved the decision making process away from
a central head office and spread it throughout the organisation.
Delayering - ✔✔✔-Reducing the amount of middle managers
Delegation - ✔✔✔-Allowing decisions to be taken at a lower level.
Demand - ✔✔✔-the quantity of a good or service that consumers are willing and able to buy at
a given price in a given period of time
Democratic - ✔✔✔-Leading a business based on decisions agreed by a majority. Consults with
subordinates.
