Definitions

Question 1

Advertising

Answer 1

Any message that a firm pays for, which promotes the firm or its products

Question 2

Aim

Answer 2

An overall goal that a business is trying to achieve

Question 3

ARR

Answer 3

The average rate of return on an investment

Question 4

Asset

Answer 4

A valuable item owned by a business, or money owed to the business

Question 5

Autonomy

Answer 5

Where a worker is given the freedom to make their own decisions in their job

Question 6

Bar gate stock graph

Answer 6

A graph that is used to manage a business’s stock levels

Question 7

Batch production

Answer 7

A method of production in which a firm makes one batch of identical items at a time

Question 8

Bonus

Answer 8

A lump sun added to an employee’s pay, usually once a year

Question 9

Brand image

Answer 9

The impression that customers have of a company or the products it sells

Question 10

Break-even level of output

Answer 10

The level of output at which a company’s total revenue equal its total costs

Question 11

Business enterprise

Answer 11

The process of identifying new business opportunities and then taking advantage of them

Question 12

Business plan

Answer 12

An outline of what a business will do and how it aims to do it

Question 13

Cash

Answer 13

The money a business can spend immediately

Question 14

Cash flow

Answer 14

The flow of all money into and out of a business

Question 15

Cash inflow

Answer 15

Money that fllows into a business

Question 16

Cash outflow

Answer 16

Money that flows out of a business

Question 17

Centralised organisation

Answer 17

An organisation in which all major decisions are made by one person or a few senior managers at the top of the organisational structure

Question 18

Commission

Answer 18

Money paid to sales staff for every item they sell on top of their basic salary

Question 19

Competitor

Answer 19

A business which sells the same products in the same market a another business

Question 20

Consumer

Answer 20

The person who uses a good or service

Question 21

Cost

Answer 21

An expense paid out to run a business

Question 22

Crowd funding

Answer 22

When a large number of people each contribute money towards funding a new business or business idea

Question 23

Curriculum vitae

Answer 23

A summary of a person’s personal details, skills, qualifications and interests

Question 24

Decentralised organisation

Answer 24

An organisation in which the authority to make most decisions is shared between people at different layers of the organisational structure

Question 25

Demand

Answer 25

How much of a product or service people will be willing to buy at a given price

Question 26

Design mix

Answer 26

The different elements of design needed to make a product successful, including its function, cost and aesthetics

Question 27

Differentiation

Answer 27

Making products or services distinctive in the market

Question 28

Diseconomy of scale

Answer 28

Where growth can lead to an increase in average unit cost

Question 29

Dividend

Answer 29

A payment that a shareholder gets if the company makes a profit

Question 30

E-commerce

Answer 30

Buying and selling products on the internet

Question 31

E-tailer

Answer 31

A company that sells products online

Question 32

Economy of scale

Answer 32

A reduction in average unit cost that comes from producing on a large scale

Question 33

Entrepreneur

Answer 33

Someone who akes on the risks of entreprise activity

Question 34

Exchange rate

Answer 34

A value that tells you how much one unit of a currency costs in a different currency

Question 35

Extension strategy

Answer 35

An action intented to extend the life of a product

Question 36

External growth

Answer 36

When a company grows by merging with or taking over another firm

Question 37

External recruitment

Answer 37

Where a business recruits new people from outside the business

Question 38

Fixed cost

Answer 38

A cost that does not vary with output

Question 39

Flat structure

Answer 39

An organisational structure with very few layers

Question 40

Flexible working

Answer 40

When working hours and patterns are adapted to suit the employee

Question 41

Flow production

Answer 41

A method of production in which all products are identical and are made as quickly as possible

Question 42

Formal training

Answer 42

A method of training which has a set plan with learning objectives and a schedule

Question 43

Franchise

Answer 43

Where a company lets another firm sell its products or use its trademarks in return for a fee or a percentage of the profits

Question 44

Freelance contract

Answer 44

When a self-employed person is recruited by a company on a temporary basis, usually to work on a specific project

Question 45

Fringe benefit

Answer 45

Any reward for an employee that is not part of their regular income

Question 46

Full-time staff

Answer 46

Employees that generally work 35-40 hours a week