Glossary Flashcards
(141 cards)
1
Q
Describe advertising
A
A message that firm pays for, which promotes the firm or its products
2
Q
What is ARR
A
The average rate of return on an investment
3
Q
What is an asset?
A
A valuable item owned by the business, or owed to the business
4
Q
What is average unit cost?
A
How much each product costs to make (calculated by dividing total costs by output)
5
Q
What is Boston Mix
A
A method used to analyse a business’s product portfolio.
Products are plotted according to their market share and how fast the market they are in is growing and are called:
dogs (low share, low growth)
cash cows (high share, low growth)
stars (high share, high growth)
question marks ( low share, high growth)
6
Q
Break-even output
A
The level of output at which a company’s total revenue equals its total costs. (makes neither profit nor loss)
7
Q
What is a business plan
A
An outline what a business will do and how it aims to do it
8
Q
What is capital
A
A company’s wealth in the form of money or other assets
9
Q
What is capital employed
A
The total amount of money put into a business
10
Q
What is cash flow
A
The flow of all money into and out of the business
11
Q
What is cash inflow?
A
The flow of money into the business:
e.g., money earned from selling products and returns on any investments
12
Q
What is cash outflow
A
The flow money out of the business -
eg operating expenses, debts, and other liabilities
13
Q
What is a centralised organisation
A
An organisation with a structure in which all major decisions are made by one person or a few senior managers at the top of the hierachy
14
Q
What is chain of command
A
The chain connecting directors to operatives in an organisational hierachy
15
Q
What is channel of distribution
A
The way that products get from a manufacturer to a consumer
16
Q
What is commision
A
Extra money given on top of their basic salary to sales staff everytime they sell an item.
17
Q
What is competitive pricing
A
A price strategy in which a firm charges similar prices to other firms
18
Q
What is a competitor
A
A business that sell the same or similar products in the same market as another business
19
Q
What is a consumer
A
A person who uses a good or service
20
Q
What is conrtact of employment
A
A legal agreement between an employee and their employer about a job
21
Q
what is cost
A
an expense paid out to run a business
22
Q
what is cost-plus pricing
A
a pricing strategy in which the cost of making the product is increased by a certain percentage to work out the price the product will be sold for
23
Q
what is credit
A
an agreement that a customer will pay for something at a later date
24
Q
what are credit terms
A
the terms of a credit agreement that tell a customer how long they have to pay
25
what is current asset
an asset that doesn't last very long
26
what is current liability
a debt that a business has to pay off soon
27
what is a decentralised organisation
an organisation with a structure in which the authority to make most decisions is **shared** or spread out between people at different layers of the hierarchy
28
what is delayering
removing layers of managment from an organisation
29
what is delegalistion
passing tasks or responisbilities onto another person
30
what is demand
how much of a product people will be willing to buy at a given price
31
what is depreciation
the amount of value that assets have lost over time due to wear and tear
32
what is the design mix
the different elements of design needed to make a prdouct successful, including the function, cost, and appearance
33
what is diseconomy of scale
when growth leads to an increase in average unit cost
34
what is a dividened
a payment that a shareholder gets if the company makes a profit
35
what is e-commerce
buying and selling products on the internet
36
what are economies of scale?
a reduction in average unit cost that comes from producing on a large scale
37
what is enterprise
the process of identifying new business opportunities, and then taking advantage of them
38
what is an entrepreneur
someone who takes on the risk of enterprise activity
39
what is exchange rate
a value that tells you how much one unit of currency costs in a different country
40
what is extension stratergy
an action intended to extend the life of a product
41
what is external espansion
when a company grows by working with other businesses
42
what is external recruitment
where a bunsiness rectruits new people from outside the business
43
what is a factor of production?
a limited resource used to provide a good or service _ e.g. land, labour, capital, or enterpreneurs
44
what is fixed asset
an asset that a business keeps long-term or uses repeatedly _ e.g. property, equipment, land, computers
45
what is fixed cost
a cost that doesn't vary with output
46
waht is flat heirachy
an organisational hierachy with few layers
47
what is flow production
a method of production in whiach all products are identical and are made as quickly as possible
48
what is franchise
where a company lets another firm sell its products or use its tradmerks in return for a fee or a percentage of the profits
49
what is fringe benefit
any reward for an employee that is not part of their regular income
50
what is full-time staff
employees that generallywork 35-40 hours a week
51
what is globalisation
the process by which the world is becoming more interconnected
52
what is government grant
a sum of money which is given by the government and does not have to be repaid
53
what is gross profit
the profit left over once the cost of sales has been taken away from the total revenue
54
what is gross profit margin
the fraction of every pound spent by customers that doesn't go towards making the product
55
what is hire purchase
when a firm purchases something by first paying a deposit and then paying the rest in installments over a period time, while they have use of the product
56
what is income statment
a financial statment that shows how the income of a business has changed over a time period
57
what is incorporated
a business that has its own legal identity
58
what is induction training
a training program that introduces new emloyees to a workplace
59
what is interest rate
a value which shows the cost of borrowing money or the reward given for saving money
60
what is internal expansion
when a company grows by expanding its own activities (called orgainic growth
61
what is internal recruitment
where existing employees are recruiuted into new roles within a business
62
what is investment
money which is put into a business to make improvements in order to make the business more profitable
63
what is job analysis
a process in which every little detail of a job is thought about
64
what is job description
a written description of what a job involves
65
what is job production
a method of production in which each product has a unique design based on the customer's specification
66
what is job share
where the work and pay of one full-time job is shared between two people
67
what is just-in-case (jic)
a method used in stock management in which buffer stocks of items are kept at every stage of the production process
68
what is just-in-time (JIT)
a method used in production or stock management in which stock levels are kept at a bere minimium – products are made just in time for delivery to customers.
69
what is lead production
a production stratergy that aims to use as few resources as possible and to have as little waste as possible
70
what is limited liability
where the owners of a business are not legally responsible for all the debts a business has
71
what is liquidity
how easily an asset acan be converted into money
72
what is a loan
a long-term source of money that must be paid back to the lender
73
what are logistics
getting goods or services from one part of the suply chain to another
74
what is long-term liability
a debt that a business has to pay off over a long period of time
75
what is loss
where the total costs for a company over a period of time are greater than its revenue
76
what is loss leader pricing
a pricing stratergy in which the price of a product is set below cost
77
what is m-commerce
when goods and services are bought on the internet using a wireless mobile device, such as a smartphone or tablet
78
what is margin of safety
the gap between current level of output and the break-even output
79
what is market
a meeting place between customers and suppliers, trade in a particular type of product, or the potential customers for a product
80
what is market research
when a business investigates different aspects of a market, e.g. demand for a product, the competition, and the target market.
81
what is market share
the proportion of total sales within a market that is controlled by a business
82
what is the marketing mix
the number of individuals (including companies) within a market that are potential buyers and sellers of products, or the total value of products in the market
83
what is a merger
when two companies join together to form a new, larger firm
84
what is a mortgage
a loan used to finance buying property
85
what is net profit margin
the fraction of every pound spent by customers that the company gets to keeep
86
what is off-the-job training
a method of training in which an employee learns away from their workplace
87
what is on-the-job training
A method of training in which an employee is shown how to do their job by another employee and then fiven the opportunity to practice
88
what is operating profit
the money left over after paying all the costs of running the business
89
What is opportunity cost
the value of something that's given up in order to do something else
90
what is organic growth
when a company grows by expanding its own activities (also alled internal expansion)
91
what is outsourcing
when a business pays another firm to carry out tasks it could do itself
92
what is overdraft
when more money is taken out of a bank account than has been paid into it
93
what are part-time staff
Emplyees that generally work 10-30 hours a week
94
what is a partnership
a business ownership structure in which a small number of people (usually between 2 and 20) own an unicorporated company
95
what is person specification
a list of the qualifications, experiences, skills, and attitudes a person needs for a particular job
96
what is price penetration
a pricing stratergy in which a firm charges a very low price for a product when it is new
97
what is price skimming
a pricing strategy in which a firm charges a very high price for a product to begin with.
98
primary research
market research that involves getting information from customers or potential customers
99
what is a private limited company
a business ownership structure that is incorperated and has shares, but the shares can only be sold with the agreement of all the shareholders
100
what is procurement
the act of finding and buying things that a business needs from outside of the business
101
what is product life cycle
the different stages taht a product goes through over time
102
what is product portfolio
the range of different products that a business sells
103
what is profit
the different between revenue and costs over a period of time
104
what is promotional mix
the combination of different promotional methods a firm uses to promote a product
105
what is a public limited company
a business ownership structure that is incorporated and has shares that can be bought and sold by anyone
106
what is public relations (PR)
business activities which involve communicating with the media in an attempt to promote a firm or its products to the public
107
what is purchasing economy of scale
a reduction in average unit cost that comes from a firm being offered a lower unit cost from suppliers when it buys its supplies in bulk
108
what is qualitative information
information that involves people's feelings or opinions
109
what is quantitive information
information can be measured or reduced to a number
110
what is a retailer
a business that sells products to consumers
111
what is retained profit
profit that is put back into the business
112
what is revenue
the income earned by a business in a given time period
113
what is a salary
a fixed payment that is made to employees every month
114
what is sales process
a series of steps for finding and selling to customers, as well as providing customer service
115
what is sales promotion
a short-term method used to boost a firm's sales, e.g. 2 for 1 offers
116
what is secondary research
market research that involves looking at data from outside the business
117
what is segmentation
when people within a market are divided into different groups
118
what is a share
a unit of ownership in a company. Owners of shares can share in the profits of the company
119
what is share capital
the money put into a business when shares were originally issued
120
what is a sole trader
a business ownership structure where one person owns an unincorporated company
121
what is span of control
the number of workers who report to one manager in a hierachy
122
what is sponsorship
a method of promotion in which a business gives money to an organisation or event. In return the organisation or event displays the business's name
123
what is staff retention
when a business keeps its staff
124
what is a stakeholder
any individaul or group of people that is affected by a business
125
what is start up capital
the money or assets needed to set up a business
126
what is a statement of financial position
a financial statement that records a business's assets and liablilites at a particualr moment in time
127
what is supply chain
the group of firms that are involved in all the various processes required to make a finished product or service available to the customer
128
what is sustainablity
working in a way that doesn't damage the Earth for future generations
129
what is takeover
when an existing business expands by buying more than half the shares in another firm
130
what is tall hierachy
an organisational hierarchy with lots of layers
131
what is technical economy of scale
a reduction in average unit cost that comes from a firm being able to afford more advanced machinery or use larger premises than a smaller firm
132
what is telesales
selling products to customers via phone
133
what is total quality management (TQM)
a strategy that aims to make quality the responsibility of every employee in an organisation
134
what is trade credit
when businesses give firms time to pay for certain purchases
135
what does unincorporated mean
a business that doesn't have its own legal identity
136
what is variable cost
a cost that increases as a firm expands output
137
what is a wage
a payment that is usually made to employees weekly or monthly. It is calculated using a time rate or a piece rate
138
what is a wholesaler
a business that buys products in bulk and stores them in a warehouse
139
what is working capital
the money available for the day-to-day operating of the business
140
what is a zero hours contract
a contract of employment which means the employer doesn't have to offer the employee any waork at all and the employee doesn't have to accept any work that is offered to them
141
