AQA A Level Business Studies -
BUSS2 Paper 2 May 2024
Exam Questions and Answers
Budget - Answer>> An agreed plan, establishing, in numerical
and financial terms, the policy to be pursued and the anticipated
outcomes of that policy
SMART - Answer>> How budgets must be:
Specific
Measurable
Agreed
Realistic
Timed
Variance Analysis - Answer>> The process by which the
outcomes of budgets are examined and then compared with the
budgeted figures
Favourable Variance - Answer>> When costs are less than
expected, or revenue is more than expected
Adverse Variance - Answer>> When costs are higher than
expected or revenue is lower than expected
Bank Overdraft - Answer>> When the holder of a current
account is allowed to withdraw more money than is in the
account. There is an agreed maximum
Short-term Loan - Answer>> Money leant from a bank to be
repayed subject to pre-agreed terms and interest payments
, Factoring - Answer>> When a factoring compqany buys the
right to collect money from credit sales of an organisation
Sale of Assets - Answer>> When a business transfers
ownership of an item that it owns to another business / individual,
usually in return for cash
Sale and Lease Back - Answer>> When an asset is sold to
provide immediate cash flow and then leased back over a fixed
period
Working Capital - Answer>> Day-to-day finance used in a
business, consisting of assets - liabilities
Profit - Answer>> The money retained by a business after all
costs have been deducted
Profitability - Answer>> The efficiency o a business in
generating profit
Net Profit Margin - Answer>> Measures net profit as a
percentage of sales. A high net profit margin is desired
Return on Capital - Answer>> Measures profit in relation to the
capital invested in a business
Capital Invested - Answer>> All of the money provided to the
business by its owners
Liquidity - Answer>> The ability to convert an asset into cash
without loss or delay
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