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 Name | The name which a business trades under |
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. |