This condition exists when a firm’s sales revenues cover all of its production costs. (hint: Unit 5)

(a)  

An organization’s spending on the purchase or acquisition of non-current assets or capital equipment, e.g., spending on buildings (premises), machinery, equipment and tools. (hint: Unit 3)

(a)  

A type of current asset, referring to individual or business customers that owe money to the organization as they have bought goods or services on trade credit, i.e., they need to pay within 30 and 60 days. (hint: Unit 3)

(a)  

These are cost-saving benefits enjoyed by a business as it increases the size of its operations, i.e., lower average costs (the cost per unit).

(hint: unit 1)

(a)  

Type of Costs that do not change with the level of output, e.g., loan repayments and management salaries. (hint: unit 3)

(a)  

A profitability ratio that measures an organization’s gross profit expressed as a percentage of its sales revenue. It is also an indicator of how well a business can manage its direct costs of production. (hint: Unit 3)

(a)  

Also known as maintenance factors, these are the factors that F. Herzberg argued cause dissatisfaction in the workplace (rather than motivation), so must be addressed.

(hint: Unit 2)

(a)  

An external growth method that involves two or more organizations agreeing to create a new business entity, usually for a finite period of time.

(hint: unit 1)

(a)  

Refers to the ease with which a business can convert its assets into cash without affecting its market value, i.e., it measures a firm’s ability to repay short-term liabilities without having to use external sources of finance.

(hint: unit 3)

(a)  

Refers to the sales revenue that an organization accounts for within a given market or industry. It is measured by expressing the firm’s sales revenue as a percentage of the whole industry’s sales revenue.

(hint: unit 4)

(a)  

A statement that is succinct and motivating declaration of an organization’s purpose of existence, who they are, and what they do.

(hint: unit 1)

(a)  

This is the use of third-party subcontractors for carrying out non-core activities of an organization in order to improve operational efficiency and reduce production costs.

(hint: unit 5)

(a)  

The official intellectual property rights (IPR) given to a business to exploit an invention or process for commercial purposes. It is an intangible asset.

(hint: Unit 3)

(a)  

A form of sampling in which the researcher selects a certain number of people from each market segment and then grouped according to characteristics (such as age or gender).

(hint: unit 4)

(a)  

The money (income) received by a business from the sale of goods and/or services.

(hint: unit 3)

(a)  

(a)   are products in a firm's product portfolio or Boston Consulting Group (BCG) matrix that have high or rising market share in a growing market. They have the potential to become cash cows if appropriated funded and marketed.

(hint: Unit 4 and Business Tools)

The money available for the day-to-day running of a business. It is calculated by subtracting current liabilities from current assets.

(hint: unit 3)

(a)  

This legal status of a business enables its shareholders (business owners) not to be liable for more than the original amount of money invested in the business.

(hint: unit 1)

(a)  

Also known as the statement of financial position, this set of final accounts shows the value of a firm’s assets, liabilities, and the owners’ investment (or equity) in the business, at a particular point in time.

(hint: unit 3)

(a)