Bad Debt

A bill sent to a customer that has not been paid, and is now not expected to be paid.  This has to be written off as an expense.

Balance of Payments

The difference between the value of exports and imports into and out of a country.

Balance Sheet

A financial document that states the exact financial situation of a firm at a specified moment in time. It states where the money in a business has come from, and what it has been used for.

Bank of England

The UK's central bank, which is responsible for the issue of notes and coins, and setting the interest rate.

Bankruptcy

When an individual, or unincorporated business is unable to settle it's liabilities.

Bar Code

A series of vertical lines. The code identifies what a product is, and so can help to manage stock control when using EPOS.

Basic Pay

The usual wage paid for working an agreed number of hours.  It does not include overtime, or bonus payments.

Batch Production

A method of manufacturing identical products in small groups, allowing minor changes to be made

Below the Line Promotion

Promotional activity that does not include the use of media, for example point of sale displays in shops.

Benchmarking

Where a business compares it's standards and methods with those of the "best" in the industry.

Blacking

A form of industrial action which involves refusing to deal with certain materials.

Blue Collar Worker

A manual worker.

Boom

The stage of the business cycle when economic activity is high.

Book Value

The current value of an asset as shown on a balance sheet, e.g excluding deprectiation.

Boston Matrix

A method of examining the product portfolio of a business by looking at the market share and market growth of each product.

Branding

Establishing an identity that separates one product or group of products from other similar products.

Break Even Point

The point when a firm's total costs equals its sales revenue. It is measured by the volume of output or number of customers needed to break even.

Breaking Bulk

What a wholesaler does, by buying large quantities from a manufacturer and then selling in smaller quantities to retailers.

British Standards Institue (BSI)

Organisation responsible for the British Kitemark - the logo that represents quality.

Budget

A financial plan of how the money in a business will be used.  The Budget refers to the financial plans of the government.

Buffer Stock

The minimum amount of stock a firm wants to hold.  This should be sufficient to cover delivery problems.

Bulk Buying

Purchasing in large quanities.  This is one way of benefitting from economies of scale.

Business Cycle

The pattern that an economy goes through.  There are 4 main stages: Boom, Recession, Slump, Recovery.

Business Plan

A written statement clearly outlining the way the firm will attempt to achieve future growth. It is often presented to a bank to obtain a loan.