A LEVEL BUSINESS UNIT ONE CHAPTER ONE

Question	Answer
WHAT DOES THE TERM GROSS DOMESTIC PRODUCT(GDP) MEAN?	it measures the total value of the production of an economy (that is all a country's businesses) over a period of time, normally a year.
WHAT IS A MISSION STATEMENT?	it sets out a business's overall purpose to direct and stimulate the entire organisation.
WHAT ARE AIMS?	long-term plans of the business from which its corporate objectives are derived.
WHAT ARE OBJECTIVES?	medium-to-long-term goals established to coordinate the business.
WHAT DOES SMART STAND FOR?	Specific Measurable Agreed Realistic Time specific
WHAT DOES A PROFIT DO FOR A BUSINESS?	measures the extent to which revenues from selling a product exceed the costs incurred in producing it over a time period.
WHAT IS THE TERM CASH FLOW?	the amount of money moving in and out of a business over a time period.
WHAT ARE STAKEHOLDERS?	individuals or groups (such as employees, customers and local residents) who have an interest in a business.
WHAT ARE FIXED COSTS?	costs that do not alter when the business alters its level of output. e.g rent and rates
WHAT DO VARIABLE COSTS DO?	alter directly with the business's level of output, e.g fuel costs
WHAT ARE TOTAL COSTS?	fixed and variable costs added together.
WHAT ARE AVERAGE COSTS?	the total costs of production divided by the level of production or output to give the cost of producing a single unit of output.

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