BTEC BUSINESS

Culture - Answer The style and ways things are done within a company based on its values, beliefs and attitudes Vision, mission and values - Answer A business will have an ideal view of what it wants to achieve and how it wants to achieve it Management practices - Answer The business culture influences how the organisation is managed Policies and procedures - Answer The day-to--day decisions and actives of an organisation will reflect the business culture Management style...

price x amount sold - Answer revenue formula revenue - total costs - Answer profit formula variable costs + fixed costs - Answer total costs inflow - outflows - Answer net cash flow formula net cash flow + opening balance - Answer closing balance formula predicted output - break even point - Answer margin of safety formula gross profit - expenditure - Answer net profit formula revenue(sales) - cost of sales - Answer gross profit formula cost per unit x out...

Breakeven - Answer When revenue and expenditure are the same. there is no profit or loss variable costs - Answer raw materials, change as output increases margin of safety - Answer is the amount by which sales would have to fall before the break-even point is reached total costs - Answer fixed costs plus variable costs break-even point - Answer when a business has made enough money through product sales to cover the cost of making the product selling price - Answer ...

marketing campaign - Answer A specific, defined series of activities used to promote a new or changed product or service of a comapany marketing strategy - Answer a company's plan that identifies how it will use marketing to achieve its goals campaign rationale - Answer Reasoning behind the campaign. Using different marketing strategies to understand market needs and satisfy them demand - Answer The amount of service or product that the consumer is willing to buy Antic...

Main functions of money - Answer 1. unit of account- (you exchange money for an equivalent value of goods) 2. means of exchange- (buy, sell or trade) 3. store of value- (it can be stored e.g. banks) 4. legal tender- (national currency of a country an official method of payment) Factors influencing your view on money - Answer 1. personal attitudes- towards risk and reward 2. life stages- your financial priories and needs 3. culture- religious belief and ethical principles 4. life...

Functions and role of money - Answer Money flowing in and out- it comes in your account and money comes out your account store of value - Answer It allows us to use it in the future as it keeps its value Legal tender - Answer It is legally recognized form of payment- old £1 getting rid of Role of money - Answer is affected by a wide number of factors. individuals may change their attitude to money based on their situation they find themselves in Personal attitudes - Answ...

Internal sources of business finance - Answer 1. Retained profit 2. Net current assets 3. Sale of assets External sources of business finance - Answer 1. Owner's capital 2. Loans 3. Crowd funding 4. Mortgage 5. Venture capital 6. Debt factoring 7. Hire purchase 8. Leasing 9. Trade credit 10. Grants 11. Donations 12. Peer to peer lending 13. Invoice discounting What is retained profit? - Answer Profit that can be taken out of the business or reinvested in it, by the ow...

What is statement of comprehensive income?? - Answer It is a financial report which records sales revenue, expenses, how much profit and loss a business made Purpose and use of the statement of comprehensive income - Answer - accurate calculation of the profit and loss a business made - records sales, costs and profit over a period of time (usually a yr.) What are cost of sales? - Answer These are direct costs attributable to the production of the goods sold in a company Cost ...

What is the Bank of England? - Answer It's the UK's central bank. Advantages of the Bank of England - Answer - responsible for UK's financial stability - interest rate designed to achieve stable economy Disadvantages of the Bank of England - Answer - increase in interest leads to expensive borrowing - members of public cannot access it What is a bank? - Answer It is a financial institution licensed to receive deposits and make loans (owned by shareholders). Advantages of...

Unit of Account - Answer It allows us to place a monetary value on goods and services. Means of Exchange - Answer It allows us to trade. Store of Value - Answer It allows us to use it in the future as it retains its value. Legal Tender - Answer It is a legally recognized form of payment. Interest Rate - Answer The proportion of an amount that is charged as interest to the borrower. Debt - Answer Money owed. Credit Rating - Answer A score given to individual...