Business and People - Key Words

Question 1

Profit

Answer 1

Money left over from sales after costs have been paid

Question 2

Revenue

Answer 2

The amount of money a business makes from selling its product/service

Question 3

Sole trader

Answer 3

A business that is owned and controlled by one person

Question 4

Partnership

Answer 4

A business that has 2-20 owners

Question 5

Limited liability

Answer 5

The owners are not personally responsible for any debts the business has, they can only.lose what the put it

Question 6

Multinational

Answer 6

A business that is based in one county, but operates in multiple others

Question 7

Economies of scale

Answer 7

They arise when costs fall and output rises. E.g. If you buy in bulk it will cost less

Question 8

Franchise

Answer 8

When an already established business sells the right to sell its product service and logo to an individual

Question 9

Royalty payment

Answer 9

A payment made to a franchisor on the revenue or profit of the franchise

Question 10

Stakeholder

Answer 10

An individual or group of people who have an interest in the business and its activities

Question 11

Private sector

Answer 11

All business that are owned by private individuals

Question 12

Public sector

Answer 12

All business owned by the government

Question 13

Insolvency

Answer 13

When a business cannot cover its costs with its revenue

Question 14

Merger

Answer 14

When two companies join together to from a new larger business

Question 15

Takeover/acquisition

Answer 15

When control of a business is achieved by buying the majority of its shares (51%)

Question 16

Primary sector

Answer 16

First stage of production, farming or mining

Question 17

Secondary sector

Answer 17

The secondary stage of production, factory’s making things

Question 18

Tertiary sector

Answer 18

Where products are sold and services provided

Question 19

Interdependence

Answer 19

The way in which a businesses in different sectors depend on each other

Question 20

Productivity

Answer 20

The measure of how well workers are working, measured by the amount the produce or the average cost of production

Question 21

Job description

Answer 21

A document that describes the duties of a worker

Question 22

Person specification

Answer 22

A profile of the type of person needed for a job

Question 23

Internal recruitment

Answer 23

When a vacancy in a business if filled by someone already in the business

Question 24

External recruitment

Answer 24

When a vacancy has in a business if filled by someone outside the business

Question 25

Psychometric test

Answer 25

Tests the help identify a candidates skills, knowledge and personality

Question 26

Presentations

Answer 26

When the applicant is asked to give a talk to the employer on a give subject

Question 27

Motivation

Answer 27

The will or desire to work and do a good job

Question 28

Autocratic

Answer 28

When an owner has full control of decision making

Question 29

Democratic

Answer 29

When an owner works with employees to make a decision

Question 30

Laissez-faire

Answer 30

When an owner gives full control of decision making to employees

Question 31

Induction training

Answer 31

Training aimed at introducing new employees to a business and its procedures

Question 32

On-the-job training

Answer 32

Employees receive training whilst remaining in the workplace

Question 33

Off-the-job training

Answer 33

When employees receive training away from the business

Question 34

Appraisal

Answer 34

A formal assessment on an employees performance

Question 35

IP - investors In people

Answer 35

A scene for business to provide opportunities for staff development

Question 36

Life long learning

Answer 36

The ideas the workers will need to keep.learning different skills during the working life

Question 37

Employment tribunal

Answer 37

A special court of law the deals with disputes between workers and employers

Question 38

Trade unions

Answer 38

An organisation the represents workers, and give individuals a way of communicating with their employees

Question 39

Industrial action

Answer 39

Strike Working to rule Overtime bans

Question 40

Redundancy

Answer 40

When employment is ended because RJ e business no longer need the work that was done by an employee

Question 41

Single union agreement

Answer 41

When workers and employees agree that workers will only be represented by one union

Question 42

ACAS

Answer 42

Advisory conciliation and arbitration service

Question 43

Organisational charts

Answer 43

Organisational charts are diagrams that show the internal structure of the business

Question 44

Levels/layers

Answer 44

The number of levels or layers a business has

Question 45

Authority

Answer 45

The power that one person has to make decisions and to control what other workers do

Question 46

Span of control

Answer 46

The number of employees for whom a manager is responsible

Question 47

Accountability

Answer 47

The responsibility that a person has for a job and anything that goes wrong or right

Question 48

Line manager

Answer 48

The person how is directly responsible for other workers

Question 49

Subordinates

Answer 49

The workers that a line manager is responsible for

Question 50

Delegated

Answer 50

The process of giving a manager authority to a subordinate

Question 51

Delegated

Answer 51

The process of giving a manager authority to a subordinate

Question 52

Chain of command

Answer 52

It is concerned with the way in which responsibility for employees if organised within the business

Question 53

Tall structures/flat structures

Answer 53

An organisational structure that has many/few layers of hierarchy

Question 54

Wide/narrow span of control

Answer 54

When some controls 5+/4- people

Question 55

Delayering

Answer 55

The process of removing layers from a hierarchy

Question 56

Market research

Answer 56

Gaining info about customers, competitors and market trends by collecting primary and secondary data

Question 57

Socio economic groups

Answer 57

A way of grouping consumers based on the job of he head of the household. Their occupation effects their income, and so how a business targets them

Question 58

Promotion

Answer 58

How a business informs customers about their products or services

Question 59

Promotion

Answer 59

How a business informs customers about their products or services

Question 60

E-commerce

Answer 60

Online shopping

Question 61

Product mix

Answer 61

The range of products a business offers for sale