keywords Flashcards
(326 cards)
1
Q
above the line promotion
A
placing adverts using media - no control over who sees
2
Q
accounts clerk
A
someone who keeps records or accounts in an office
3
Q
acid test ratio
A
assesses the firms liquidity by doing current liabilities/(current assets - stocks) also called quick ratio
4
Q
advertising
A
communication between a business and its customers where messages are placed in the media to encourage the purchase of products
5
Q
agent / broker?
A
intermediary that brings together buyers and sellers
6
Q
anti competitive practices?
A
attempts by firms to prevent or restrict competition
7
Q
apprenticeship
A
system of training new entrants to a trade or profession
often young workers
mostly on the job training
8
Q
arrears?
A
money that you owe someone because you have not made regular payments at the correct intervals or amounts
OR
money that is owed to you because you have not received regular payments at the correct intervals or amounts
9
Q
assembly plant?
A
factory where parts are put together to make a finished product
10
Q
assets
A
resources used or owned by a business
11
Q
assisted areas?
A
areas that are designated by a government as having economic problems and are targeted to receive support in a variety of forms
12
Q
automation
A
use of computers and machines instead of people to do a job
13
Q
automotive
A
relating to cars
14
Q
bank overdraft
A
agreement wit bank where a business spends more money than it has in their account (up to an agreed limit)
15
Q
balance of trade? / visible balance
A
difference between visible exports and visible imports
16
Q
barriers to entry
A
restrictions that mean its difficult for new firms to enter a market
17
Q
batch production
A
method of completing one operation at a time on all units before performing next
18
Q
below the line promotion
A
any promotion that does not involve the media - control who sees
19
Q
bonus systems
A
payment in addition to the basic wage for reaching targets or in recognition for service
20
Q
bid
A
offer to pay a particular price for something
21
Q
boston matrix
A
2x2 matrix that describes products according to the market share they enjoy and whether the market has any potential for growth
22
Q
break even chart
A
graph that shows total cost and total revenue
break even point where total costs and total revenue intersect
23
Q
break even point
A
level of output when total costs and total revenue are exactly the same - no loss or profit made
24
Q
budget
A
an official statement that a government makes about how much it intends to spend and what the rate of taxes will be for the next year or 6 months
25
budgetary measures?
actions taken by the government to influence business and the economy
26
bulk breaking
dividing a large quantity of goods received from a supplier before selling them on in smaller quantities to customers
27
bulk buying
buying goods in large quantities
which is usually cheaper than buying in small quantities
28
business
organisation that produces goods and services
29
business to consumers
selling of goods by a business to consumers
30
capital employed
amount of money invested in a business
31
capital
finance provided by owners of a business
32
capital intensive production
production methods that make more use of machinery relative to labour
33
cash flow
flow of money into a business
34
cash flow forecast
prediction of all expected receipts and expenses of a business over a future time period
shows the expected cash balance at the end of each month
35
cash inflow
flow of money into a business
36
cash outflow
flow of money out of a business
37
centralised
type of organisation system where most decisions are made at the top of the organisation and then passed down the chain of command
38
certificate of incorporation
document needed before a new company can start doing business
39
chairperson
someone who is in charge of a meeting or directs the work of a committee or organisation
40
charities
organisations that give money, goods or help people who are poor, sick or in need
41
closing cash balance
amount of cash that the business expects to have at the end of each month
(takes into account the cash inflows and outflows)
42
commission
extra amount of money that is paid to a person or organisation according to the value of the goods they have sold or the services they have provided
43
commodities
products that are brought and sold
(in business often things like rice, oil meat etc)
44
communication channels
routes along which information might travel in a business
45
competition based pricing
pricing strategies based on prices charged by rivals
46
consumer cooperative
cooperative that is owned by its customers
47
consumer goods
goods and services sold to ordinary people (consumers) rather than businesses
48
consumer panels
groups of customers are asked for feedback about products over a set period
49
contracts of employment
written agreements between an employer and an employee in which each has certain obligations
50
cooperative
company, factory or organisation in which all the people working there own an equal share of it
51
cost plus / cost based pricing
adding a percentage (the mark up) to the costs of producing a product to get the price
52
costs
expenses that must be met when setting up and running a business
53
coupons
printed piece of paper given to customers by the seller of a product, allows customer to pay less than the usual price of product when they next buy it, or to get a free gift
54
crowd funding
where a large number of individuals invest in a business venture using an online platform and therefore avoids using a bank
55
currency reserves
money in foreign currency held by a country and used to support its own currency and to pay for imports and foreign debts
56
current assests
assets that can be changed to cash (liquified) within a year
57
current liabilities
debts that have to be repaid within a year
58
current ratio
assesses the firms liquidity by doing current liabilities/current assets
59
de-industrialisation
decline in manufacturing
60
debenture?
long-term loan certificates issued by limited companies to shareholders.
61
decentralised
type of organisation system where decision making is pushed down the chain of command and away from the top
62
deed of partnership
binding legal document that states the formal rights of partners
63
demographic segmentation
dividing a market according to the type of people that make up a particular group
in particular their age, sex, and income
64
design brief
set of instructions about what a new product should look like or what features it should have
65
destroyer/ predatory pricing
setting a low price until rivals have gone out of business
66
direct mail
advertisements sent to people in the post
often people who have been chosen because they might be interested in the product
67
direct selling
where businesses sell their products directly to consumers
68
diseconomies of scale
rising average costs when a firm becomes too big
69
distributed profit
profit that is returned to owners of a business
70
distribution channel
route taken by a product from the producer to the customer
71
diversify
if a business, company or country diversifies, it increases the range of goods or services it produces
72
dividends
share of profit paid to shareholders in a company
73
division of labour
specialisation in specific tasks or skills by an individual
74
downsizing
process of reducing capacity
usually by laying off staff
75
downturn
period or process in which business activity, production, etc is reduced and conditions become worse
76
downward communication
passing messages from the top of organisation to those at the bottom
77
drawings
money taken out of the business by the owner for personal use
78
dumping
where a business sells goods in another country, often below cost
79
e-commerce/e-tailing
use or electronic systems to sell goods and services
80
early adopters
consumers who are keen to buy new products as soon as they are launched
81
economies of scale
financial advantages (falling of average costs) of producing something in very large quantities
82
emerging economies
rapidly growing economies that have huge growth potential but also pose significant risks
83
enterprise
the activity of starting and running a business
84
entrepreneur
person who takes risks and sets up a business
individual who organises the other factors of production and risks their own money in a business venture
85
exchange rate
value of one currency in terms of another
86
excise duties?
taxes on selected goods
87
executives
managers in an organisation or company who help make important decisons
88
exports
goods and services sold overseas
89
exposure
advertising and publicity that is used to sell a product or service
90
extension strategies
methods used to lengthen the life of a product
91
external communication
communication between the business and those outside
such as customers, investors or authorities
92
external economies of scale?
cost benefits that all firms in the industry can enjoy when the industry expands
93
external finance
finance obtained from outside the business
94
external recruitment
appointing workers from outside the business
95
extraction industries
industry where materials (such as oil and coil) are obtained from under the ground in drilling, mining and quarrying
96
factors of production
resources used to produce goods and services
including land, labour, capital and enterprise
97
finance cost
interest paid on loans
98
finance income
interest received by the business on deposit accounts
99
financial return
monetary return
100
finite
having and end or limit
101
fixed assets
resources that are used repeatedly for a period of time by a business (such as property, tools, vehicles and machinery)
102
fixed capital
stock of human-made resources (such as machines and tools) used to help make goods and services
103
fixed costs
costs that do not vary with the level of output
104
flotation
process of a company 'going public'
105
flow production
large scale production of a standard product, where each operation on a unit is performed continuously one after the other, usually on a production line
106
formal communication?
use of recognised channels when communicating
107
formal organisation?
internal structure of a business as shown by an organisation chart
108
franchise
structure where a business (franchisor) allows another operator (franchisee) to trade under their name
109
free trade
trade between nations that is completely without government restrictions
110
fringe benefits
additional employment perks awarded to employees
111
globalisation
growing integration of the worlds economies
112
goods
physical products
113
goodwill
value that a company has because it has good relationship with its customers and suppliers
114
gross pay
pay before deductions (such as tax)
115
gross profit
revenue - cost of sales
116
gross profit margin
gross profit/revenue x 100
117
hire purchase
buying specific goods with a loan, often provided by a finance house
118
horizontal communication
exchange of information between parties on the same level of an organisation's hierarchy
119
human capital
people and their skills
120
human resources
the department that deals with employing, training and helping people
121
hygiene factors (Herzberg's)
things at work that results in dissatisfaction
122
imports
goods and services brought from overseas
123
incorporated
business that has a separate legal identity from that of its owners
124
induction training
training given to new employees when they first start a job
125
infant industries
new industries that are yet to be established
126
infinite
without limits in space or time
127
informal communication
use of non-approved channels when communicating
128
infrastructure
basic systems and structures that a country or organisation needs in order to work properly
129
innovator
someone who introduces changes and new ideas
130
insolvent
inability to meet debts
131
instalment
one of a series of regular payments made until all money owed has been paid
132
intellectual property?
people's knowledge or creative ideas that have commercial value and are protectable under different forms of copyright
133
interest
price of borrowed money (and reward to savers)
134
intermediary
person or organisation that helps to arrange agreements of business deals between other people or organisations
135
internal communication
communication between people inside the business
136
internal economies of scale?
cost benefits that an individual firm can enjoy when it expands
137
internal finance
finance generated by the business from its own means
138
internal recruitment
appointing workers from inside the business
139
inventory
stocks of goods
140
invisible trade
trade in services
141
issue (shares)
sale of shares
142
just in time
production technique that is highly responsive to custom orders and uses very little stock holding
143
job enrichment
making a job more challenging and interesting
144
job production
method of production that involves completing one unit of output at a time
145
job satisfaction
pleasure, enjoyment or sense of achievement that employees get from their work
146
kaizen
Japanese term that means continuous improvement
147
labour
people employed in a business/used in production
148
labour productivity
output per worker in a given time period
149
labour intensive production
production methods that make more use of labour than machinery
150
large business
a business that employs more than 250 people
151
lay off (staff)
make employees redundant
152
lean production
approach to production aimed at reducing the quantity of resources used
153
liabilities
debts of the business
154
limited companies
business organisations that have a separate legal identity from that of their owners
155
limited liability
business owner is only responsible for the original amount of money invested into the business
156
limited partnership
partnership where some partners contribute capital and enjoy a share of profit but do not take part in the running of the business
157
liquid
asset that is easily changed into cash
158
liquidity
ease or speed with which assets can be sold for cash
159
livelihood
way you earn money in order to live
160
long term finance
money borrowed for more than 1 year
161
loss leader?
product sold below cost to draw in customers
162
margin of safety
amount of output available to be sold above the break even point where the business makes a profit
163
market analysis
quantitative and qualitative assessment of a market
164
market orientation
where a business focuses on the needs of consumers when developing products
165
mark-up
percentage added to costs that makes a profit for a business when setting a price
166
market research
collection, presentation and analysis of information relating to the marketing and consumption of goods and services
167
market segments
part of a whole market where a particular customer group has similar characteristics
168
market
set of arrangements that allows buyers and sellers to communicate and trade in goods and services
169
market share
proportion of sales in a total market that a business or product enjoys
170
marketing
identifying a customers needs and satisfying them profitably
171
marketing mix
elements of a firm's marketing that are designed to meet the needs of customers
(the 4 P's - product, price, promotion, place)
172
Maslow's hierarchy of needs
order of people's needs starting with basic human needs
173
mass markets
very large markets in which products with mass appeal are marketed
174
merchandise
goods that are being sold
175
merchandising
way in which goods are arranged and placed in a store
176
merger?
two or more businesses joining together to form one new firm
177
mortgage
long term loan secured with property
178
motivators (Herzberg's)
things at work that result in satisfaction
179
multinational company
large business with significant production or service operations in at least two different countries
180
minimum wage
minimum amount per hour which most workers are entitled to be paid
181
net assets
value of all assets - value of all liabilities
(total at the bottom of the balance sheet)
182
needs
basic requirements for human survival
183
net cash flow
difference between cash flowing in and out of a business in a given time period
184
net current assets
current assets - current liabilities
(aka working capital)
185
net pay
take home pay, that is, pay after deductions, (such as income tax pension contributions or student loan repayments)
186
niche market
smaller market, usually within a large market or industry
187
non-current assets
assets that last for more than 1 year
188
non-current liabilities
debts that are payable after 12 months
189
normal profit
minimum profit a business needs to make to retain the interest of owner(s)
190
objectives
goals or targets set by a business
191
off the job training
training that takes place away from the work area
192
on the job training
training that takes place while doing the job
193
operating profit
gross profit - expenses
194
operating profit margin
operating profit/ revenue x 100
195
organisation
group that has formed for a particular purpose
196
organisational chart
diagram that shows the different job roles in a business and how they relate to each other
197
outcompeted
perform more effectively in a particular field
198
output
amounts of goods or work produced by a person, machine or factory
199
overdue
money that has not been paid by the time expected
200
overheads
money spent regularly on rent, insurance, electricity and other things that are needed to keep a business operating
201
overtime
rate of pay above the normal rate to compensate employees for working extra hours
202
overtrading
taking on more work than a business can afford to fund effectively
203
partnership
business owned by between 2 and 20 people
204
patents
legal documents giving a person or company the right to make or sell a new invention, product, or method of doing something and stating that no other person or company is allowed to do this
205
payroll officer
someone who is responsible for the administration of workers pay in an organisation
206
penetration pricing
setting a low price to start with in order to get established in the market
price may be raised once established
207
performance-related pay
payment system designed for non-manual workers where pay increases are given if performance targets are met
208
pharmaceutical
relating to the production of drugs and medicines
209
piece rate
payment system where workers receive an amount of money for each unit produced
210
portfolio
collection of business interests or products
211
predator
business that tries to use another's weakness to get advantages
212
premises
buildings and land used by a shop or business
213
primary research
gathering of 'new' information that does not already exist
214
primary sector
production involving the extraction of raw materials from the earth
215
private limited company (Ltd)
A company with limited liability
216
private sector
business organisations owned by individuals or group of individuals
217
privatisation
transfer of public sector resources to the private sector
218
process production
form of flow production where materials pass through a plant where a series of processes are carried out in order to change the product
219
producer goods
goods and services produced by one business for another
220
product development
identifying opportunities and ideas for new products and converting those ideas into marketable goods or services
221
product life cycle
level of sales at the different stages through which a product passes over time
222
product orientation
where a business focuses on the design and manufacture of the product itself rather than the need of customers
223
product portfolio (product mix)
range of products a business is currently marketing
224
product positioning
way that people think about a product in relation to the company's other products and to competing products, or the way that the company would like them to think about it
225
production
transformation of resources into a final product
226
productivity
rate at which goods are produced, and the amount produced
especially in relation to the work, time and money needed to produce them
227
profit maximisation
making as much profit as possible in a given time period
228
profit
revenue - costs
229
profit satisficing
making enough profit to satisfy the needs of the business owner(s)
230
prospectus
document produced by a company that wants the public to buy its shares
231
protectionism
use of trade barriers to protect domestic producers
232
public cooperations
business organisations owned and controlled by the state/government
233
public limited company (Plc)
large businesses that sell shares publicly on the stock exchange
234
public relations
attempt by a business to communicate with interested parties
235
public sector
business organisations owned by central or local government
236
qualitative data
information about opinions, behaviour, beliefs usually written in words
237
quality circles
small group of factory workers who meet regularly to discuss ways to improve working methods and to solve problems
238
quality
features of a product that allow it to satisfy customers needs
239
quality assurance
working methods that take into account customers wants when standardising quality - it often involves guaranteeing that quality standards are met
240
quantitative data
information that is expressed in numbers
241
quality control
making sure that the quality of a product meets specified quality standards
242
quota
physical limit on the quantity of imports allowed into a country
243
ratio analysis
mathematical approach to investigating accounts by comparing 2 related figures
244
redeployment
moving someone or something to a different place or job
245
regulatory control
official power to control an activity and to make sure that it is done is a satisfactory way
246
remuneration
money paid to employees for their work or services
247
repatriation (of profit)
where a multinational returns the profits from an overseas venture to the country where it is based, typically from a developing country to a developed country
248
repossess
to take back cars, furniture or property from people who had arranged to pay for them over a long time, but cannot now continue to pay for them
249
retail cooperative
cooperative of retail members, who often work together to assert their purchasing power
250
retailers
businesses that buy goods from manufacturers and wholesalers and sell them in smaller quantities to consumers
251
retained profit
profit held by a business rather than returning it to the owners, and which may be used in the future
252
return on capital employed (ROCE)
profit of a business as a percentage of the total amount of money used to generate it
253
revenue
money from sales of goods and services
254
rights issue
sale of new shares to existing shareholders at a discount
255
salary
pay (usually to non-manual workers) expressed as a yearly figure but paid monthly
256
sample
small group of people which must represent a proportion of a total market when carrying out market research
257
saturate (market)
to offer so much of a product for sale that there is more than people want to buy
258
scale
size of a business
259
scarce
resources with limited availability
260
secondary research
collection of data that already exists
261
secondary sector
production involving the conversion of raw materials into finished and semi-finished goods
262
services
non-physical products
263
shareholders
a person or institution that has invested money in a corporation in exchange for a “share” of the ownership
owners on limited companies
264
short-term finance
money borrowed for one or less year
265
skimming
setting a high price initially and then lowering it later
266
small business
a business that employees fewer than 50 people
267
social enterprise
business that aims to improve human or environmental wellbeing
non profit aims
268
social security payments
money taken by the government (british) from peoples wages to pay for the system of payments to people who are unemployed or ill
269
socio-economic groups
division of people according to social class based on employment status
270
sole trader
business owned by a single person
271
span of control
number of people a person is directly responsible for in a business
272
stakeholder
individual or group with an interest in the operation of a business
273
statement of comprehensive income
financial document showing a firm's income and expenditure in a particular time period
274
statement of financial position
summary of a business's assets, liabilities and capital at a point in time
aka balance sheet
275
stock market
market for shares in PLC's (public limited companies)
276
stockpile
large supply of goods and so forth that are being kept for use or possible use in the future
277
subscription pricing
amount of money regularly paid to receive a newspaper, magazine or broadcasting/telephone service
278
surplus
amount of something that is more than what is needed or used
279
sustainable development
idea that people should satisfy their basic needs and enjoy improved living standards without compromising the quality of life of future generations
280
tailor-made
where a product has been designed so that it is exactly right for someone's needs
281
tariff
tax on imports to make them more expensive
282
tax allowances
part of income that is not taxed
283
tertiary sector
production of services in the economy
284
time rate
payment system based on the amount of time employees spend at work
285
total costs
fixed costs + variable costs
286
total quality management (TQM)
managerial approach that focuses on quality and aims to improve effectiveness, flexibility and competitiveness of the business
287
total revenue
money generated from sales of output
price * quantity
288
trade barriers
measures designed to restrict trade
289
trade bloc
group of countries situated in same region that join together and enjoy trade free barriers
290
trade payables
buying resources from suppliers and paying for them at a later date
(sometimes called trade credit)
291
trade receivables
amounts of money that are owed to a company by its customers
292
trade unions
organisations (usually in particular trade or profession) that represent workers, especially in meetings with employers
293
training
process that involves increasing the knowledge and skills of a worker to enable them to do their job more effectively
294
transactions
business deals or action (eg buying or selling something)
295
undercapitalised
starting a business with insufficient capital
296
unfair dismissal
when the worker is dismissed illegally by a business
297
unincorporated
businesses where there is no legal difference between the owner and business
298
unique selling point (USP)
feature of a product that no other similar products have, used in advertising to try to persuade people to buy it
299
untapped
supply, market or talent that is available but has not yet been exploited
300
unlimited liability
owner of a business is personally responsible for all business debts
301
upward communication
passing messages from the bottom of an organisation to those at the top
302
urbanisation
process of constructing more and more buildings on rural land
303
variable costs
costs that change when output level changes
304
venture capitalists
specialist investors who provide money for business purposes, often to new businesses
305
ventures
new business activity that involves taking risks
306
viability studies
careful study of how a planned activity will work, how much it will cost, and what income it is likely to produce
307
viral advertising
direct marketing technique in which a company persuades internet users to forward its publicity material in emails or via social media
308
visible trade
trade in physical goods
309
wants
people's desires for goods and services, not needed for survival
310
wholesalers
people or businesses that buy goods from manufacturers and sell them in smaller quantities to retailers
311
worker cooperative
cooperative owned by its employees
312
Fixed Costs formula
Total Costs - Variable Costs
313
Revenue formula
Revenue = Quantity Sold × Price
314
Total Costs formula
Fixed Costs + Variable Costs
315
Productivity formula
Productivity = Total Output ÷ Quantity of Input
316
Variable Costs formula
Variable Costs = Variable Cost per Unit × Quantity Produced
317
Net Profit formula
Net Profit = Gross Profit - Operating Expenses (Overheads)
318
Labour Productivity formula
Labour Productivity = Total Output ÷ Number of Employee
319
Efficiency formula
Efficiency = Total Output / (Total Workers + Capital)
320
Capital Employed formula
Capital Employed = Total Assets - Current Liabilities
321
Break-Even Point (in Units) formula
Break-Even Point (in Units) = Fixed Costs ÷ (Selling Price per Unit - Variable Cost per Unit
322
Margin of Safety formula
Margin of Safety = Actual Output - Break-Even Output
323
Contribution per Unit formula
Contribution per Unit = Selling Price per Unit - Variable Cost per Unit
324
Closing Balance formula
Closing Balance = Opening Balance + Net Cash Flow
325
Working Capital (Net Current Assets) formula
Working Capital (Net Current Assets) = Current Assets - Current Liabilities
326
Net Cash Flow formula
Net Cash Flow = Cash Inflows - Cash Outflows
