NESA Key Terms
Recognise and name
Identify
This directive term is often in the first part of a more detailed question
Sketch in general terms; indicate the main features of
Outline
It is commonly used in the first stages of a multi-part question. In outlining the characteristics, students are expected to summarise the characteristics, omitting details and examples
What does market share refer to?
The percentage of the total market gained by one particular supplier.
What are the four key business functions?
Operations, Marketing, Finance and Human Resources
What is a stakeholder?
Anyone who has an interest in a business; stakeholders include shareholders, employees, suppliers, consumers, lenders, government and community.
Relate cause and effect; make the relationships between things evident; provide why and/or how
Explain
Explain’ is one of the most commonly used directive terms and is used at various levels in a question. By explaining, students have to show that they understand a concept or area of content.This usually requires a detailed explanation. Students may have to examine reasons and causes.
Provide characteristics and features
Describe
Students would be expected to give a general outline without a great deal of analysis.
What does 'cash flow' refer to?
The movement of cash into and out of a business.The forecasting of cash flow is an important part of business management
What is liquidation?
One of the ways of ceasing a business. In liquidation the business is wound up, stops trading and all of the assets of the business are sold to pay for the debt of the business. Often the asset sales do not cover the amount of debt and the creditors lose money.
What is a competitive advantage?
Gaining a price advantage over competitors because of a lower cost structure.
Identify issues and provide points for and/or against
Discuss
Discussion should include specific detail, often presenting both sides of an issue.
Show how things are similar or different
Compare
Students would be expected to show how the two types specifically differ and how they are similar
What are external factors?
Circumstances that are outside the business’s control (e.g. economic cycles or population changes) but still influence the business.
What are internal factors?
In a business the internal factors or the internal environment of the business refer to situations under the control of the business, such as its workforce, its plans and its production processes.
What are the four P's in marketing?
Price, promotion, place and product
Identify components and the relationship between them; draw out and relate implications
Analyse
Analyse’ is a high-order and more complex term and is usually incorporpated into the later part of the question
Inquire into
Examine
‘Examine’ is often used to allow students to discuss and analyse the factors involved in a particular situation. It is a higher-order directive term. Students would be expected to show what the relevant factors were and analyse their particular importance
What is a strategic plan?
Long-term plans (over long periods of time) that set out the objectives of the business and show how the business can achieve them.
What is working capital?
The capital required by a business to fund its operations and to enable it to expand.Also the difference between current liabilities and current assets
What are the three types of legal structures?
Sole traders, partnerships and companies
Make a judgement based on criteria; determine the value of
Evaluate
‘Evaluate’ gives the student an opportunity to make a judgment based on evidence.A student would be expected to carefully weigh the evidence and make a judgement on the overall success
Make a judgement of value, quality, outcomes, results or size
Assess
Commonly used high-order directive term. Students would be expected to make a judgment and provide extensive evidence for their judgment
What are current Liabilities and non current liabilities?
Current: Liabilities that must be paid within the normal trading period (usually one year) (e.g. creditors and bank overdrafts)
Non Current: Liabilities that are not due to be paid within the next 12 months.
What are current assets and non current assets?
Current: Those business assets that are likely to be used up or converted into cash during the normal operating cycle (usually a year)
Non Current: Those business assets that are not likely to be used up or converted to cash during the normal operating cycle; assets of more than 12 months duration.
What is the difference between debt and equity financing?
Equity: The money (finance) provided by the owners or shareholders of a business, to establish a business or to extend it. (owners equity or selling of shares)
Debt: In establishing a business or expanding an existing one, money borrowed from external sources such as banks and financial institutions is referred to as debt finance. (overdrafts, commercial bills, unsecured notes, mortgage, debentures, factoring)