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75 Cards in this Set
- Front
- Back
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Absenteeism |
Worker's non-attendance |
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Acid test ratio |
Ratio between liquid assets and current liabilities |
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Adding value |
Selling a product for more than it's cost to produce it |
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Advertising |
Paid-for communication with consumers which uses printer and visual media. The aim is to inform and persuade consumers to buy a product |
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Annual general meeting (AGM) |
A meeting for shareholders that limited companies might hold once every year |
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Appreciation |
A currency is said to appreciate it the value of the currency increases with respect to another currency |
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Appropriation account |
Recorded the distribution of profit after tax |
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Assets |
Resources that are owned by a business |
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Autocratic leadership |
A leadership style where the leader makes all the decisions |
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Average cost |
The cost of producing a single unit of output |
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Balance of payments |
The difference between the value of export and import of goods and services of a country over a year |
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Balance sheet |
An accounting statement that reports the assets, liabilities and owner's equity of a business at a particular date |
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Bank loan |
Provision of Finance by a bank which the business will repay with interest over an agreed period of time |
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Barriers to trade |
Usually taxes, quotas or bans that one country places on the goods of other countries to prevent or increase the cost of them entering the country |
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Batch production |
The production of goods in batches. Each batch passes through one stage of production before moving on to the next stage |
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Below the line promotion |
Promotion that is not paid for communication but uses incentives to encourage customers to buy |
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Bonus |
An additional reward paid to workers |
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Brand |
A name, image or symbol that distinguishes a product from competitors products |
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Break - even |
The level of output where Revenue equals total costs |
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Business activity |
The process of producing goods and services to satisfy customers demand |
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Business environment |
The combination of internal and external factors that influence the operations of a business |
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Business plan |
A detailed written document outlining the purpose and aims of a business which is often used to persuade lenders or investors to finance a business proposal |
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Business startup |
Annually from the business. They usually start small, but some might grow to become much bigger |
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Capital expenditure |
Spending by a business on non-current assets such as Machinery or buildings |
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Capital goods |
Physical Goods used by other businesses to help produce other goods and services such as machinery and delivery vehicles |
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Capital intensive |
Production process using a high-quality of Capital Equipment compared with labor input |
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Capital productivity |
A measure of the efficiency of capital by calculating the output per capital employed |
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Cash flow forecast |
An estimate of the future cash inflow and outflow of a business |
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Centralised organization |
One where all the important decisions making power is held at head office, or the center |
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Chain of command |
The route through which authority is passed down through an organisation |
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Chain of production |
The production and supply of goods to the final consumer involves activities from primary, secondary and tertiary sector businesses |
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Channel of distribution |
How a product gets from the producer to the final consumer |
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Chief executive officer (CEO) |
The most senior manager responsible for the overall performance and success of the company |
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Collateral |
Non-current assets offered as security against borrowing |
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Commission |
Payment to sales stuff based on the value of items they sell |
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Communication media |
The methods used to communicate a message |
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Competitive pricing |
Setting a price similar to the competitors products which are already established in the market |
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Consumer |
The final user of a product |
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Consumer goods |
Products which are sold to the final consumer. They can be seen and touched |
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Consumer markets |
Markets for goods and services but by final consumers |
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Consumer services |
Non tangible products such as insurance services , transport |
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Corporate social responsibility |
Businesses taking responsibility for the impact their activities might have on society and the environment |
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Cost benefit analysis |
Analysis of the costs and benefits of a project , the focus being on the social costs and benefits |
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Cost of sales |
The cost of purchasing goods used to make the products sold |
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Cost Plus pricing |
Setting price by adding a fixed amount to the cost of making or buying the product |
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Credit sales |
Goods sold to Consumers who will pay for these at an agreed date in the future |
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Current assets |
Resources that the business owns and expects to convert into cash before the date of the next balance sheet |
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Current liabilities |
Debts of the business which it expects to pay before the date of the next balance sheet |
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Current ratio |
Ratio between current assets and current liabilities |
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Customer |
An individual or business that buys goods and services from a business |
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Customer base |
The group of customers a business sells its production to |
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Customer relationship marketing |
Using marketing activities to establish, maintain and improve relationships with customers to build customer loyalty |
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Debenture |
Bonus issued by companies to raise long-term Finance usually a fixed rate of interest |
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Debt factoring |
Selling accounts receivables to improve business liquidity |
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Decentralised organization |
One where the decision-making Powers are past down the organization to lower levels |
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Delayering |
Reducing the size of the hierarchy by removing one or more levels |
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Delegation |
Passing responsibilities to perform tasks to workers lower down the organization |
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Demand |
The quality of goods and services customers are willing and able to buy |
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Democratic leadership |
A leadership style where workers take part in decision-making |
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Price |
The amount paid by the customer to the supplier when buying a good or service |
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Product quality |
The product meets the needs and expectations of customers |
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Pricing methods |
Market skimming, penetration pricing, cost-plus pricing, competitive pricing, promotional pricing |
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Market skimming |
Setting a high price for a new product that is unique or very different from any other product on the market |
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Penetration pricing |
Setting a low price to attract customers to buy a new product |
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Competitive pricing |
Setting a price similar to that of competitors products which are already established in the market |
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Cost-plus pricing |
Setting price by adding a fixed amount to the cost of marketing or buying the product |
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Loss-leader pricing |
Setting the price of a small number of products at a low cost to attract customers |
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Benefits and limitations of market skimming |
Read notes |
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Benefits and limitations of competitive pricing |
Read notes |
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Benefits and limitations of cost-plus pricing |
Read notes |
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Benefits and limitations of promotional pricing |
Read notes |
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Price elasticity of demand |
Measures by how much demand for a product changes when there is change in its price |
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Price inelasticity |
The percentage change in demand is less than the percentage change in price |
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Price elastic demand |
The percentage change demand is greater than the percentage change price |
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Revenue |
The amount earned by a business from the sale of its products |
