Key Terms Flashcards
(30 cards)
Mass market
A large market with a wide appeal and high sales volume.
Niche market
A small, specialist segment of a larger market.
Market share
The proportion of total sales held by one business (%).
Primary research
First-hand data collected directly from customers.
Secondary research
Data previously collected for another purpose.
Price elasticity of demand (PED)
Measures responsiveness of demand to a change in price.
Income elasticity of demand (YED)
Measures responsiveness of demand to a change in income.
Break-even
Point where revenue equals total costs.
Margin of safety
Sales above the break-even point.
Liquidity
The ability of a business to meet short-term obligations.
Current ratio
Current assets divided by current liabilities.
Organic growth
Expansion from within the business.
External growth
Growth via mergers or takeovers.
Interest rate
The cost of borrowing or reward for saving.
Exchange rate
The value of one currency compared to another.
Autocratic leadership
Leader makes decisions alone.
Democratic leadership
Leader involves the team in decision-making.
Taylor’s Scientific Management
Motivation theory based on money and productivity (piece-rate pay).
Maslow’s Hierarchy of Needs
Motivation theory based on five human needs (from physical to self-actualisation).
Herzberg’s Two-Factor Theory
Motivation depends on hygiene factors and motivators.
Hackman and Oldham
Motivation comes from meaningful, autonomous jobs with feedback.
Cash flow forecast
A prediction of inflows and outflows over time.
Contribution per unit
Selling price - variable cost per unit.
Gross profit
Revenue – Cost of Sales.
