Edexcel IAL Business Unit 3 key terms
Annual revenue - correct answer-the total value of sales (price x quantity) made within a
one-year trading period
Ansoff's Matrix - correct answer-a decision making model that helps a business determine its
product and market growth strategy
Average rate of return - correct answer-the average annual return over the lifetime of the
investment as a percentage of the initial outlay
Boston Matrix - correct answer-a tool for analysing the current position of the products within
a business's product portfolio in terms of their market share and market growth
Brand - correct answer-a name, symbol or logo that identifies or differentiates the product or
business in the eyes of the consumers
Business growth - correct answer-could be measured by an increase in volume or value of
output
Business strategies - correct answer-strategies which can be used by a business to give a
competitive advantage over its competitors
Company growth - correct answer-the expansion of a business through increased sales,
market share, distribution, product range, or customer base
Competitive advantage - correct answer-a set of unique features of a company and its
products that are perceived by the target market as significant and superior to those of the
competition
Conglomerate - correct answer-a business that consists of different types of businesses
which are unrelated to each other but part of the whole group
Contingency - correct answer-an unforeseen event that is out of the control of a business,
but has major impact on that business and its stakeholders
Contingency planning - correct answer-making plans in advance for
unwanted/unforeseen/unlikely possibilities, so that the business can implement the plan if
things go wrong or problems arise
Contribution - correct answer-the difference between total revenue and total variable costs
Contribution pricing - correct answer-setting a price for orders or individual products which
exceeds the variable cost
Corporate aim - correct answer-a generalised statement of where a business is heading
Annual revenue - correct answer-the total value of sales (price x quantity) made within a
one-year trading period
Ansoff's Matrix - correct answer-a decision making model that helps a business determine its
product and market growth strategy
Average rate of return - correct answer-the average annual return over the lifetime of the
investment as a percentage of the initial outlay
Boston Matrix - correct answer-a tool for analysing the current position of the products within
a business's product portfolio in terms of their market share and market growth
Brand - correct answer-a name, symbol or logo that identifies or differentiates the product or
business in the eyes of the consumers
Business growth - correct answer-could be measured by an increase in volume or value of
output
Business strategies - correct answer-strategies which can be used by a business to give a
competitive advantage over its competitors
Company growth - correct answer-the expansion of a business through increased sales,
market share, distribution, product range, or customer base
Competitive advantage - correct answer-a set of unique features of a company and its
products that are perceived by the target market as significant and superior to those of the
competition
Conglomerate - correct answer-a business that consists of different types of businesses
which are unrelated to each other but part of the whole group
Contingency - correct answer-an unforeseen event that is out of the control of a business,
but has major impact on that business and its stakeholders
Contingency planning - correct answer-making plans in advance for
unwanted/unforeseen/unlikely possibilities, so that the business can implement the plan if
things go wrong or problems arise
Contribution - correct answer-the difference between total revenue and total variable costs
Contribution pricing - correct answer-setting a price for orders or individual products which
exceeds the variable cost
Corporate aim - correct answer-a generalised statement of where a business is heading
