Introduction To Business As, Key Terms

Front 1

Stakeholders

Back 1

An individual or a group of individuals who take an interest in a business's activities.

Front 2

Cash Flow

Back 2

The money flowing into and out of a business on a daily basis.

Front 3

Shareholders

Back 3

A holder or owner of shares in a limited company.

Front 4

Opportunity Cost

Back 4

The loss of other alternatives when one alternative is chosen.

Front 5

Manager

Back 5

A person responsible for controlling an organisation or a group of staff.

Front 6

Market Research

Back 6

The gathering of information about consumers' needs and interests.

Front 7

Primary Data

Back 7

Data that have been collected by the researcher directly.

Front 8

Secondary Data

Back 8

Data collected by someone other than the user.

Front 9

Supplier

Back 9

The party in the supply chain that makes goods or services available to businesses.

Front 10

Sample

Back 10

A proportion drawn from a population, intending to lead to statistical estimates of the entire population.

Front 11

Induction Training

Back 11

The training an employee receives when he/she first joins an organisation.

Front 12

Turnover

Back 12

The amount of money taken by a business in a particular period.

Front 13

Profit

Back 13

A financial gain; the difference between total revenue and total costs.

Front 14

Public Ownership

Back 14

Property interests that are vested in the state, rather than a private entity.

Front 15

Private Ownership

Back 15

The ownership of property by non-governmental entities.

Front 16

Primary Sector

Back 16

Industry that's concerned with the gathering of raw materials.

Front 17

Secondary Sector

Back 17

Industry that converts raw materials into commodities and products for the consumer.

Front 18

Tertiary Sector

Back 18

The part of the country's economy concerned with the provision of services.

Front 19

Franchise

Back 19

An authorisation granted by a company to an individual group enabling them to carry out specified commercial activities.

Front 20

Sole Trader

Back 20

A person who's the exclusive owner of a business, entitled to keep all post-tax profits but liable for all losses.

Front 21

Economies of Scale

Back 21

A proportionate saving in costs gained by increased production.

Front 22

Diseconomies of Scale

Back 22

A situation in which the economies of scale no longer function for a firm, and instead there's an increase in marginal costs.

Front 23

Public Limited Company

Back 23

Has shareholders with limited liability and its shares can be sold to the general public.

Front 24

Private Limited Company

Back 24

A company with statutory minimum capital requirements and shares offered to the public under limited liability.

Front 25

Creditors

Back 25

A person or a firm to whom money is due.

Front 26

Goods

Back 26

Tangible products, e.g. a car.

Front 27

Services

Back 27

Non-physical items, e.g. hairdressing.

Front 28

Recruitment

Back 28

The process by which a business seeks to hire the right person for a vacancy.

Front 29

Training

Back 29

The action of teaching a person a particular skill or type of behaviour.

Front 30

Segments

Back 30

A marketing strategy that involves dividing a broad target market into a subset of customers who have common needs and priorities.

Front 31

Decision-making

Back 31

The thought process of selecting a logical choice from the available options.

Front 32

Human resource planning

Back 32

A process that identifies current and future HR needs based on objectives set by upper management.

Front 33

Workforce planning

Back 33

Analyses what a firm will need in terms of the size and quality of its workforce to achieve objectives.