Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
154 Cards in this Set
- Front
- Back
Businesses?
|
are organization that are involved in the production of goods and/or the provision of services.
|
|
Division of labour?
|
refers to the specilization of workers in the provision of goods and/or services by breaking a job down into a particular role.
|
|
Entreprenuers?
|
Are the people who plan, manage and organize factors of production.
|
|
Factors of production?
|
Are the inputs necessarily for the production process: land, labour, capital and enterprise.
|
|
Industrialization?
|
is the process experienced by a country that moves away from primary production towards manufacturing as its principle sector.
|
|
Opportunity costs?
|
refers to cost measured in terms of the next best alternative that is forgone when a choice is being made.
|
|
Primary sector?
|
businesses involved in the cultivation or extraction of natural resources such as mining, farming, fishing etc.
|
|
Private Sector?
|
Business under the control of private individual rather than the government.
|
|
Public Sector?
|
part of the economy under the control of the government.
|
|
Secondary Sector?
|
where a business is active concerning construction and manufacturing of physical products.
|
|
Structural change?
|
a shift in the relative share of a nation output and employment that is attributed to each business sector, i.e. primary, secondary and tertiary sector.
|
|
Tertiary Sector?
|
section of the economy where business activity is concerned with the provision of services to customers.
|
|
Value added?
|
the difference between a product's price and the total costs of inputs that went into making it.
|
|
Articles of Association?
|
is the name given to a document that set out the internal organization and rules of a limited company.
|
|
Certification of Incorporations?
|
us the name of the document issued to a limited company to show that it has been legallt formed and is therefore a seperate legal entity from its owner.
|
|
Charities?
|
a non-profit organization that are established to support good causes form society's view piont.
|
|
Deed of Partnership?
|
Is the legal contract signed by owners of a partnership.
|
|
Incorporation?
|
means that there is a legal difference between the legal owner and the business itself.
|
|
Limited liability?
|
restriction on the amount of money that can be lost from the owners of a business if it goes into bankruptcy.
|
|
Memorandum of Association?
|
the name of one legal document required to create an incorporated company.
|
|
Non-governmental organizations?
|
refers to any private sector organization that does not aim to make a profit.
|
|
Partnership?
|
private sector business owner by 2-20 people. They share the responsibility and burden of the business.
|
|
Private Limited Company?
|
a business organization owner by shareholders with limited liability but whose shares cannot be bought by or sold to the general public.
|
|
Public Limited Company?
|
incorporate business organization that allows the general public to buy and sell shares in the company via stock exchange.
|
|
Stock exchange?
|
is the market place for trading stocks and shares of the public limited companies.
|
|
Silent partner?
|
an investor in a partnership that is not directly involved in the daily running of a business.
|
|
Sole trader?
|
a self-employed person. He/She runs their business on their own and has sole responsibility for its success (profit) or failure (unlimited liability).
|
|
Unlimited liability?
|
a feature of sole traders and ordinary partners who are legally liable for all monies owned to their creditors.
|
|
Aims?
|
Long-term goals of a business.
|
|
Corporate Social Responsibility?
|
the consideration of ethical and environmental issues relating to business activity.
|
|
Ethics?
|
more values determine and affected business behaviour.
|
|
Mission Statement?
|
the declaration of an organization's overall purpose.
|
|
Objectives?
|
relatively short term targets of an organization.
|
|
SMARTobjectives?
|
specific, measurable, agreed, realistic and timed.
|
|
Social audit?
|
independent assessment of how an organization's actions affect society.
|
|
Social Responsibility?
|
business being conscientiously concerned with the well being of the general public as a whole.
|
|
Strategy?
|
methods businesses can use to achieve in attempt to achieve their mission or vision. Long-term plans
|
|
Tactics?
|
short-term method that firms can use to achieve their objectives.
|
|
Vision statement?
|
an organization's long term aspirations, i.e. where it ultimately wants to be.
|
|
Appraisal?
|
the formal process of evaluating the contribution and performance of an employee.
|
|
Human resource management?
|
role of managers in developing the organizations people. This will include task such as the recruitment, selection, dismissal, and training and development of employees.
|
|
Job description?
|
The document that outlines the nature of job, i.e. the roles, tasks and responsibilities involved in a particular job.
|
|
Labour productivity?
|
measures the output per worker,.
|
|
Labour turnover?
|
the number of workfoce that leave a firm as a percentage of the workforce per year.
|
|
Person specification?
|
a business document that gives the profile of the ideal candidate for a job.
|
|
Portfolio working?
|
Means working means to carry out a number of different jobs.
|
|
Delayering?
|
A method of improving the communication by reducing the numbers of levels in an organizational hierarchy.
|
|
Autocratic?
|
managers and leaders that adopt an authoritarian style by making all the decisions rather than delegating any responsibilities.
|
|
Contingency theory?
|
is a leadership model based on the belief that the 'best' leadership style for a business depends on a range of interconnected factors, such as the size, skills and abilities of the workforce.
|
|
Leadership?
|
A skill of getting things done through other people by inspiring, influencing and motivating them.
|
|
Management?
|
practice of achieving an organization's objectives by using the available resources
|
|
Empowerment?
|
non-financial motivator which involves a line manager giving his or her subordinates some autonomy(independence) in their job.
|
|
Fringe benefits?
|
Are the benefits recieved in addition toa wokers wages or salaries.
|
|
Job enlargement?
|
increasing the number of tasks that an employee performs.
|
|
Job enrichment?
|
giving workers more challenging jobs with more responisbilities.
|
|
Job rotation?
|
a form a job enlargement giving workers a number of different tasks.
|
|
Motivation?
|
the inner desire and passion to do something.
|
|
Performance related pay?
|
a payment system that rewards people who meet set targets over a period of time.
|
|
Piece rate?
|
a payment system that rewards people on the amount of produces or sells.
|
|
Producitivity?
|
Meassures the level of output per worker.
|
|
Time rate?
|
a payment system that rewards people for the time that they put into their work.
|
|
Scientific management?
|
developed by F.W Taylor who believed that specialization and division of labour would generate greater levels of productivity.
|
|
Theory X?
|
McGregor's term for describing managers that percieve their employees in a pessimistic way,i.e. constant supervision, told what to do and do not seek any responsibility.
|
|
Theory Y?
|
believes that employees do have initiative, want praise and recognition for their achievement.
|
|
Market orientation?
|
an approach adopted by businesses that are outward looking. They focus on the products that can sell, rather than selling products that they can make.
|
|
Marketing?
|
is the management role of predicting, identifying and meeting the needs and wants of customers in a profitable manner.
|
|
Product orientation?
|
an approach adopted by businesses that are inward looking. They focus on selling products that they can make, rather than making products that they can sell.
|
|
Social marketing?
|
refers to any activity that seeks to influence social behaviour to benefit the target audience and society as a whole.
|
|
Marketing audit?
|
refers to the systematic examination and review of the current position of a firm in terms of its strengths and weaknesses.
|
|
Marketing mix?
|
refers to the four main elements of marketing strategies; price, product, place, promotion.
|
|
Sales forecasting?
|
a quantitative technique that attempts to estimate the level of sales a business excepts to achieve.
|
|
Unique selling piont?
|
any aspect of a product that makes it stand out from those offered by rival businesses.
|
|
Brand development?
|
The long term product strategy that involves strengthening the name and image of a brand in order to boost its sale.
|
|
Brand extension?
|
use of an existing brand name that is successful to launch a new modified product.
|
|
Differentiation?
|
any strategy used to make a product appear to be dissimilar from others.
|
|
Extension strategy?
|
an attempt by marketers to lengthen the product life cycle of a particular product.
|
|
Marketing myopia?
|
refers to the short-sightedness and complacency of marketers in adapting to changes in a market.
|
|
Product?
|
refers to any physcial or non-physical item that is purchased by either commercial or private customers.
|
|
Product life cycle?
|
a products life; Reasearch &development, launch, growth, maturity, saturation and decline.
|
|
above the line promotion?
|
any form of paid-for advertising through mass media.
|
|
below the line promotion?
|
promotional method that do not directly use the mass media a s a form of promotion.
|
|
Publicity?
|
promoting a business and its products by getting media coverage without directly paying for it.
|
|
Pull promotion?
|
lure the customers to buy product.
|
|
push promotion?
|
use real estate agents or such to help sell the product, i.e. push the product in customers face.
|
|
Sales promotion?
|
short term incentives, ex. free samples, discount coupons.
|
|
Word of mouth?
|
spread a good or bad message about a firm.
|
|
channels of distribution?
|
the way products gets from the manufacturer to the consumer.
|
|
supply chain management?
|
manageing and controlling the sequence of activities from the production of a good or service to it is delivered.
|
|
global marketing?
|
refers to the marketing of a product by using the same marketing strategy in various countries.
|
|
international marketing?
|
is the marketing of a firm's products in foreign countries.
|
|
B2B?
|
stands for business to business and refers to online trade conducted directley for the business customer. ex. amazon.com supplying books to other retailers!
|
|
B2C?
|
stands for business-to-consumer and refers to online business conducted directly for the end-user, such as Amazon selling books to individual.
|
|
E-commerce?
|
is the trading of goods and services via the internet.
|
|
E-tailers?
|
are businesses that operate predominatley online such as Amazon and Ebay.
|
|
Batch production?
|
producing a collection of identical products. Work on each batch is fully completed before production switches to another batch.
|
|
flow production?
|
a form of flow production whereby different operations are continuously and progressivley carried out.
|
|
line production?
|
is a form of flow production whereby a product is assembled in various stages along a conveyor belt until a finished product is made.
|
|
Mass production?
|
the manufacturing of large amounts of a standardized product.
|
|
Job production?
|
method of production that involves the production of unique or one-off job. ex. tailor made suit-
|
|
average cost?
|
refers to the amount a firm spends on producing one unit of output.
|
|
average revenue?
|
found by dividing a firm's total revenue by its level of output.
|
|
contribution?
|
the difference between sales revenue and total variable costs.
|
|
direct costs?
|
those that are directly linked to the production of a specific product.
|
|
fixed costs?
|
the costs that do not vary with the level of output.
|
|
indirect costs?
|
costs which do not directly link to the production or sale of a specific product.
|
|
variable costs?
|
those that change in proportion to the level of output, such as raw materials
|
|
break-even chart?
|
a graph that shows a firms costs, revenue and profits at various levels of output
|
|
break even quantity?
|
level of output the generates neither profit or loss
|
|
contribution per unit?
|
the differnece of selling the product and the price of production
|
|
margin of safety?
|
difference between a firms level of demand and break even quantity
|
|
benchmarking?
|
process of indentifying best practice in an industry in relation to products process and operations.
|
|
lean production?
|
the approach used to eliminate wast in an organization.
|
|
quality assurance?
|
refers to the method used by a business to reassure customers abotu the quality of their products.
|
|
total quality culture?
|
is a philosophy which occurs in organizations that embed quality in all aspects of business activity.
|
|
bulkincreasing businesses?
|
businesses that need to be located near their raw materials in order to minimise costs.
|
|
buld reducing businesses+
|
BUSINesses that locate near their raw materials because they are heavier to transport than final products.
|
|
Infrastructure?
|
used to describe the transportation, communication and support networks in certain areas.
|
|
buffer stock?
|
the minimum stock level held by a business in case there are any unexpected occurences.
|
|
just-in-case (JIC)?
|
a stock control management system that recongnizes the need to maintain large amounts of stock in case there any emergencies.
|
|
just-in-time=
|
a stock control system where materials and components are scheduled to arrive precisely when they are needed in the production process.
|
|
business angel?
|
a wealthy and entrepreneurial investor who risk their money in smalll to medium sized businesses that have high growing potential.
|
|
capital expendenture?
|
spending by business on fixed assets such as the purchase of land and buildings.
|
|
creditors?
|
individuals in an organization that the business owes money to that need to be settled within 12 months.
|
|
debentures?
|
long-term loans to a business with the promise of fixed assets intrest payments to the debentures holders.
|
|
factoring?
|
a financial service whereby a factor collects debts on behalf of other businesses.
|
|
leasing?
|
is suitable if firms needs to use expensive assests such as equiment or vehicles. the leasing company will hire them to the customeer (leseesö
|
|
non-resources debt factoring?
|
where debt factors are protected by their bank against bad debts that might incur.
|
|
overdrafts?
|
allow businesses to spend in excess of the amount in its accoutn, this is the cheapest and most flexible way of borrowing for a business.
|
|
revenue expenditure?
|
spending of day to day running of a business such as wages, rent utility bills
|
|
working capital?
|
the day to day money that is available to a business.
|
|
accounting rate of return?
|
calculates the average annual profit of an invsestment. (profit per / years) / (intial invetsment) = x 100
|
|
payback period?
|
estimates the length of time that ti will take to recoup the initial cash outflow of an investment project. intial investment/contribution per month
|
|
assets?
|
items owned by a business and have monetary value (fixed assets are not intented for resale within 12 months, currents assets are to be used up within 12 months)
|
|
cash flow?
|
the transfer or movement of money into and out of an organization.
|
|
cash flow statement?
|
finincial docuement that records the actual cash inflows and cash outflows for a business over a specific period.
|
|
liabilities?
|
debts owned by a buisness
|
|
liquidity?
|
ability to convert assets into cash quickly and easily without a fall in its value.
|
|
overheads?
|
such as light, rent, security, insurance.
|
|
balance sheet?
|
financial statement showing a firms assets and liabilities at a specific point in time.
|
|
capital employed?
|
all long-term sources of finance for a business, such as bank loans, share capital and any resources that hold the business.
|
|
cost of goods sold?
|
the direct costs of producing or purchasing a particular level of stock that has actually been sold to customers.
|
|
depreciation?
|
fall in value of fixed assets over time
|
|
fixed assets?
|
monetary value that are owned by a business that are not supposed to be sold within 12 months. ex, land, machinery
|
|
gross profit?
|
the difference between the sales revenue of a business and its direct costs incurred in manufactoirng
|
|
net assets?
|
all the assets minus the long term liabilities.
|
|
profit and loss acount?
|
financial statement of a firm's trading activity over a period of time (differece from balance sheet as that shows the financial position at a certain time)
|
|
window dressing?
|
manupulating ,legallly, financial information to make the results look more flattering.
|
|
current ratio?
|
short-term ratio that meassures the number of days it takes, on average, for a business to pay its creditors.
|
|
gearing?
|
long-term liquidity ratio that meassures percentage of a firm's capital employed that comes from long-term liabilities.
|
|
gross profit margin?
|
the percentage of sales revenue that turns into gross profit
|
|
net profit margin?
|
profitability ratio that shows the percentage of sales revenue that turns into net profit
|
|
ratio analysis?
|
is a managment tool that compares different financial figures. can be classicified in 5 different categories: profitability, efficiency, liquidity, gearing and shareholder ratio.
|
|
RETURN on capital employed`
|
meassures the profit of a business in relation to its size.
|
|
stock turnover=
|
number of times a firm sells its stocks within a year.
|