Business Management Revision

Assets

items of monetary value owned by the business

Australian Competition and Consumer Commission (ACCC)

government authority responsible for administering the Competition and Consumer Act 2010 and for promoting and educating in the provision of good business practices for a fair and efficient marketplace

Business or economic cycle

regular swings in economic activity; from boom conditions to recession, and the reverse

Capital

funds invested in a business, which form one of the main inputs for the production process

Charity

the voluntary giving of help, typically in the form of money, to those in need

Collective bargaining agreement

an agreement where collectively the employees have negotiated with an employer the conditions of employment relating to their pay and working conditions

Common law

law that has been made by courts

Competitor

a business rival in the same market for products of services offered by an organisation

Conflict of interest

a set of circumstances that creates a risk that professional judgment or actions regarding a primary interest will be unduly influenced by a secondary interest

Consumer

a person or group who purchases or uses a product

Corporate culture

the shared values and beliefs of an organisation, which can influence the actions and decision-making style of managers and employees

Corruption

dishonest or fraudulent conduct by those in power, typically involving bribery

Creditor

an individual or organisation that has extended credit to an organisation

Debt

a sum of money owed by one person (debtor) to another person (creditor)

Deregulation

involves removing government regulation from an industry in pursuit of greater efficiency and creating an improved competitive environment

Downsizing

occurs when an organisation reduces its operations; may result in office or plant closure, and reduction in functional positions (jobs)

Employer

a person who hires another to work under their authority and control, in return for payment of a regular wage or salary

Entrepreneur

a person who is willing to combine an element of risk taking with their own knowledge and skills to make a profit

Ethics

a set of moral principles that an organisation needs to establish and follow

External environment

the factors outside a business that influence its decisions

Foundation

an organisation established from donated funds, for the purpose of donating funds to others

Global economy

the economy of the world; it has no domestic economic boundaries

Globalisation

removal of economic boundaries, which creates free international trade and movement of capital between nations

Gross domestic product (GDP)

Total value of output produced in a country in one year

Industry sector

Different types of organisations and enterprises producing goods and services in the same industry or business area

Infrastructure

Physical resources of an area that benefit the entire community

Interest groups

Non-profit and usually voluntary organisation whose members have a common cause for which they seek to influence public policy, without seeking political control

Internal environment

Activities, functions and pressures that occur within an organisation over which it has control

Job

A group of tasks performed by an employee

Large business

More than 200 employees

Legislation

Act of parliament (statute)

Lobby group

A group that aims to influence organisations or governments in their decision-making process

Macro environment

Broad operating conditions in which an organisation operates and over which it has no control

Management

The process of planning, organising, leading and controlling the work of subordinates to achieve organisational goals; getting work done through other people

Market share

The percentage of total sales in a market held by one brand or business

Merge

Two or more businesses join together to form one united business

Microbusiness

Small business that has fewer than five employees

Mission statement

A global statement that reflects an organisation's reason for being or purpose and the way it will be managed

Multinational corporation (or transitional corporation)

A multinational corporation is a corporation that is registered in more than one country or that has operations in more than one country

Not-for-profit organisation

An incorporated organisation which exists for educational or charitable reasons, and from which its shareholders or trustees do not benefit financially

Objective

A specific result that a person or system aims to achieve within a timeframe

Operating environment

The environment immediately external to an organisation with which it has close interaction when conducting its business activities

Organisation

Two or more people who work together in a structured way to achieve a specific objective or set of objectives

Organisational stakeholder

Use of systems to share information and understanding with large groups of people

Outsourcing

Process of using another business to undertake some task or work process

Packaging

Physical protection given to a product that can also form an important part of its image and appeal to the consumer

Policy

A course or principle of action opted or proposed by an organisation or individual

Primary sector

Businesses that operate in industries that are concerned with agriculture, fishing and extraction of raw materials

Privatisation

The process of selling government-owned businesses to the private sector

Proprietor

Owner of a registered business name

Public sector organisation

An organisation that is part of the state and deals with delivery, production or allocation of goods and services by and for the state

Quality

The degree of excellence in a good or service and its ability to satisfy the customer

Quaternary sector

Industry sector that represents communications, finance, insurance, property, business services and education

Quinary sector

Industry sector that represents accommodation, restaurants and cafes, health and community services, cultural and recreational services, personal and household services

Remuneration

The amount a person is compensated (paid) for performing work tasks (job); it can take the form of cash and/or fringe benefits; it can be referred to as salary of wages

Retailer

Business that sells products, usually in small quantities, to households or individual consumers

Revenue

What a business earns in the way of sales or fees

Salary

An agreed amount of money paid to employees for their labour during a year; expressed as an amount per annum

Secondary sector

Business activity that relates to manufacture and construction of goods

Service-oriented industry

Those businesses that provide a service to a client

Services

Non-material objects produced by people for the benefit of others

Small business

An independently owned and operated business, under close control of its owner who has contributed the majority of the operating capital and is the main decision maker; the business may employ up to 20 people (non-manufacturing) and 100 people (manufacturing)

Social responsibility

Ethical or social responsibility where a government, organisation or individual has a duty to society at large; is about improving the quality of relations with key stakeholders

Stakeholder

Individual or group that has a direct or vested interest in the activities of an organisation

Supplier

Supplies the inputs (resources) required for the production process

Sustainable competitive advantage

A long term competitive advantage that is not easily duplicable or surpassable by the competitors

Technology

Practical application of science to achieve a commercial or industrial objective; it often involves the use of computers and can relate to information, communication, design and manufacturing

Tertiary sector

Business activity that provides services for consumers and other businesses

Unfair dismissal

Dismissal of staff that does not follow agreed legal procedures; employees may seek to be compensated or reinstated

Vision statement

A statement that outlines the aspirations of the organisation

Wage

The monetary reward for labour, paid on a weekly basis calculated by multiplying the hourly rate by the number of hours worked for the period