AQA Subject specific vocabulary

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Aim

Back

The intention to reach a goal.

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Asset

Back

Something the business owns; it has a value.

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Average rate of return

Back

The average profit for the year as a percentage of the original investment. Formula: Average rate of return = (average return per annum / initial investment) × 100

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Boston matrix

Back

A tool for analyzing the contribution made by each product in a business’ product portfolio. It plots each product’s position according to its market share and the rate of growth of the market.

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Brand image

Back

The consumers’ perception of the brand; its character, qualities, and shortcomings. It is developed over time and operates as a consistent theme through advertising campaigns.

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Break-even chart

Back

A diagrammatic representation of the costs and revenue for a product; it plots total costs against total sales revenue, showing the break-even point where they cross.

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Break-even output

Back

The point at which the business’ total sales equals the total costs. There is neither profit nor loss.

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Buffer stock

Back

A stock of raw materials held in reserve to protect the production process from unforeseen shortages.

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Business plan

Back

A detailed statement of how the business intends to operate, either at start-up or during a given period of time. Business plans are based on forecasts and so cover only a short time.

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Cash

Back

Money that the business has in cash or at the bank.