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Flashcards in Key Terms 3 Deck (43):
1

Fiscal policy

Change in taxation and government expenditure to manage economy

2

Social security payments

Money from the gov. from peoples wages to pay for the system of payments, to unemployed or ill

3

Anti competitive practices

Attempts by firms to prevent or restrict competition

4

Barriers to entry

Cost that must be payed by a new entrant into a market

5

Merger

Two or more business joining together to create a new firm

6

Protectionism

Use of trade barriers to protect domestic producers

7

Infant industries

New industries that have to be established

8

Dumping

export a product to another country at a price below the normal price

9

Trade barriers

Measures designed to restrict trade

10

Quota

Physical limit of the amount of “X” allowed into the country

11

Subsidy

Financial support given to a domestic producer for them to compete with overseas firms

12

Interest

Price of borrowed money and reward to savers

13

Monetary policy

Using changes in interest rates and money supply to manage the economy

14

Urbanization

Process of constructing more buildings in rural areas

15

Capital intensive

Using more machinery than labour in production

16

Sustainable development

Idea that people should enjoy improved quality of life without claiming the quality of life of futures generations

17

Capital employee

Amount of money invested into a business

18

Inventory

Stocks of goods

19

Fixed assets

Resources that are used repeatedly for a period of time by a business

20

Downturn

Period in which a business activity and conditions become worse

21

Under capitalized

Starting a business with unsufficient capital

22

Downward communication

Passing messages from top of the organization to those at the bottom

23

Upward communication

Passing messages from the bottom of the organization to those at the top

24

Horizontal communication

Exchange of info. Between persons on the same level on a business

25

Internal communication

Communication between people inside a business

26

External communication

Communication between the business and those outside

27

Formal communication

Use of approved channels when communicating

28

Informal communication

Use of non approval channels when communication

29

Redemployment

Moving someone or something to a different job or place

30

Internal recruitment

Appointing workers from inside business

31

External recruitment

Appointing workers from outside the business

32

Examples of competitive policies

Encourage growth of small firms

Lower the barriers for entry

33

What is competition policy

Policies that promote competition

34

Reasons for a business failure

Cash flow problems
Lack of finance
Not competitive
Failure to innovate

35

What happens when a interest rates are low

Savings decrease

36

Example of external factor of technology

Robots are cheaper than production

Robots can work 24/7

37

Example of envirmonetal external factor

Global warming
Habitat destruction

38

Example of political external factor

Political instability in a country

39

Reasons for a business to be unable to compete effectively

Ineffective marketing
New entrant

40

Reasons for business to cash flow

Poor financial management

Over borrowing

41

Reason for training

Increase knowledge and skills so productivity increases

42

Who receives induction training

New employees

43

Example of consumer protection

Competition policy