Y11 Revision

2. A short-term liquidity ratio used to calculate the ability of an organization to meet its short-term debts (within the next twelve months of the balance sheet date).
6. This condition exists when a firm’s sales revenues cover all of its production costs.
9. Suppliers may give trade credit, which needs to be repaid at a future date (typically 30 to 60 days).
11. A business alliance consisting of between 2 and 20 individual owners who are jointly responsible for the business (although this number can vary between countries).
14. This form of external growth involves two or more companies agreeing to form a single, larger company thereby benefiting from operating on a larger scale.
15. Costs that change with the level of output - they rise when output or sales increase, e.g., raw materials and packaging costs.
16. 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.
17. 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.

1. The individuals, organizations, or groups with a vested interest in the actions and outcomes of a specific organization. They are directly affected by the performance of the business.
2. 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.
3. The money (income) received by a business from the sale of goods and/or services.
4. 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).
5. The movement of an organization’s cash inflows (cash received from the sale of goods and services) and cash outflows (used to pay for the costs of running the business).
7. Wealthy and successful private individuals who risk their own money in a business venture that has high growth potential.
8. A banking service that enables customers (personal and business customers) to withdraw more money from their account than exists in the account.
10. An external growth method that involves two or more organizations agreeing to create a new business entity, usually for a finite period of time.
12. This growth strategy involves the right to trade using another company’s products, brand name and corporate logo.
13. Costs that are clearly associated with the output or sale of a certain good, service or business operation, e.g., raw materials.