BUSINESS STUDIES



GLOSSARY



YEARS 10 AND 11









NAME .....................................












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|Above the line |Methods of promotion that allow a firm to reach |
| |a wide audience easily. These include methods |
| |such as advertising on television and in |
| |newspapers and magazines. |
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|ACAS (Advisory, |An independent body established under the |
|Conciliation and |Employment Protection Act whose aim is to help |
|Arbitration |employers and employees resolve trade disputes |
|Service) |and improve industrial relations. |
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|Accounting ratios|A way of analysing the performance of a company |
| |by comparing key items from its balance sheet |
| |and the profit and loss account. These are used|
| |to show performance in four areas: |
| |profitability, liquidity, productivity and |
| |investment. |
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|Advertising |Advertising is designed to create an awareness |
| |of a product. It is the process of informing a |
| |customer about a product or service (informative|
| |advertising) and persuading that customer to buy|
| |it (persuasive advertising). |
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|Advertising |A voluntary body set up by the UK advertising |
|Standards |industry to consider complaints made by |
|Authority (ASA) |customers about advertisements. It expects an |
| |advert to be legal, decent, honest and true. |
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|Annual bonus |A fixed amount in addition to a basic wage or |
| |salary, which employees receive once a year, |
| |often at Christmas. This bonus payment |
| |motivates employees and encourages loyalty to |
| |the business. |
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|Annual General |The statutory meeting of directors and |
|Meeting (AGM) |shareholders held once a year. The shareholders|
| |are asked to vote on various proposals that the |
| |board of directors is making about the company, |
| |but can also ask the directors questions about |
| |the business. Shareholders may also elect |
| |members of the board of directors. |
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|Annual report. |A report issued by a limited company, which |
| |contains written and financial statements about |
| |the progress of the company in the previous |
| |financial year. This is to ensure that the |
| |shareholders receive some information on an |
| |annual basis. |
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|Apprenticeship |A system of on the job training for craft skills|
| |or a profession where young people are given |
| |training by working alongside a skilled worker. |
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|Assets |What a company owns represented in the balance |
| |sheet. Fixed assets are long-term assets, which|
| |are for use in the business and not for resale. |
| |Current assets are used in the course of the |
| |business and will be converted into cash within |
| |the next twelve months. |
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|Assisted areas |Specific geographical areas of the UK, which are|
| |eligible to receive financial assistance. The |
| |government has identified these areas by above |
| |average unemployment rates caused by the decline|
| |in traditional industries such as ship building,|
| |coal mining and steel production. |
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|Authority |The capacity to give commands which others |
| |accept as legitimate in an organisation. |
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|Autocratic |A style of leadership where the power for making|
|leadership |decisions is in the hands of one person or a |
| |small group of people. This is the opposite of |
| |democratic leadership. |
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|Average cost |Also called unit cost. The total costs of |
| |producing a product divided by the number of |
| |units produced. Over a short period of time it |
| |is expected that as output increases, average |
| |costs will fall to start with and then rise |
| |again as the factory moves towards full |
| |capacity. See economies/diseconomies of scale |


























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|Balance of |A record of the overall results of a country's |
|payments |trading activity with the rest of the world. It|
| |includes imports and exports of goods and |
| |services and capital flows into and out of the |
| |country. |
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|Balance sheet |One of the final accounts. It shows the assets |
| |and liabilities of the business at a particular |
| |date. It is often called a 'snap shot' of the |
| |financial state of the business. |
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|Bank of England |The central bank of the UK. It controls the |
| |money supply, interest rates and inflation. |
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|Bankruptcy |The condition of being unable to meet the