Flashcards in F291 Deck (78)
What are the four inputs into a business?
Capital, enterprise, land and labour
Someone who makes a business idea happen, either through their own effort, or by organising others to do the work
Define opportunity cost.
The cost of the next best alternative foregone
Any person or group of people who have a direct interest in the business
Define strategic decisions.
Decisions that concern the long-term objectives and overall plans of a business, and are taken by senior management and directors
Define tactical decisions.
Short- or medium-term decisions made on a day-to-day basis, such as ordering stock and planning production schedules
Define cash flow forecast.
Estimating future monthly cash inflows and outflows, to find out the net cash flow
An asset used as security for a loan. It can be sold by a lender if the borrower fails to pay back a loan
Define negative cash flow.
When cash outflows are greater than inflows
When a firm expands without adequate and appropriate funding
Define public limited company.
A company with limited liability, and shares that are available to the public. Its shares can be quoted on the stock market
Define share capital.
Business finance that has no guarantee of repayment or of annual income, but gains a share of the control of the business and its potential profit
Define stock market.
A market for buying and selling company shares. It supervises the issuing of shares by companies. It is also a secondhand market for stocks and shares
Define venture capital.
High-risk capital invested in a combination of loans and shares, usually in a small, dynamic business
Define employment tribunal.
An informal courtroom where legal disputes between employees and employers are settled
Define external recruitment.
Where a job vacancy is filled by appointing a candidate from outside the business
Define induction training.
Familiarises newly appointed workers with key aspects of their jobs and their employer, such as health and safety policies, holiday entitlement and payment arrangements. The aim is to make employees productive as soon as possible
Define internal recruitment.
Where a job vacancy is filled by appointing someone from the existing workforce
Define job description.
A document that outlines the duties and responsibilities associated with a particular job role
Define labour market failure.
The reluctance of employers to invest in training for fear that staff, once trained, will be poached by other firms attempting to avoid training costs. If sufficient firms are discouraged from training employees, overall skill levels within the workforce will fall, leading to a loss of competitiveness for the economy as a whole
Define National Minimum Wage.
The lowest hourly wage rate than an employer can legally pay to an employee
Define off-the-job training.
Where employees leave their normal place of work in order to receive instruction, either within the firm or by using an external organisation such as a college or university
Define on-the-job training.
Where employees acquire or develop skills without leaving their usual workplace, perhaps by being guided through an activity by a more experienced member of staff
Define person specification.
A document that outlines the qualifications, skills and other qualities needed to carry out a particular job successfully
Define selection techniques.
The processes used by an organisation to choose the most appropriate candidate for a job, such as interviewing or testing
Define zero training.
The opposite of customer service, in that it implies that staff need neither skills nor positive attitudes to work for the business
Keeping records of the results from past research to provide a comparison with the latest results
A factor that causes research findings to be unrepresentative of the whole population
Define primary research.
Finding out information first-hand