Business Vocabulary: Starting a Business, Work Organisation, and Advertising

Comprehensive vocabulary flashcards covering terms, definitions, and concepts related to starting a business, legal forms, work organisation, job descriptions, advertising, and branding based on the lecture notes.

Accomplish (v.)

To achieve or complete something successfully.

Allocate (v.)

To assign a certain amount to something for a specific purpose.

Break-even point

The point where total costs equal total income from sales and the company makes neither a profit nor a loss.

Companies House

An executive agency of the UK Government which holds a register of all private and public companies in Great Britain.

Company secretary

A senior officer in a private company or public organisation who is the named representative on legal documents and who is responsible for ensuring that the company and its directors operate within the law.

Competitive advantage

A condition or circumstance that puts a company in a favourable or superior business position; also the title of a business plan section outlining sustainable advantages and strategies to maintain them.

Corporation tax

Tax charged on a company’s taxable income or profits.

Cost management

The planning and control of costs.

Dividend

A part of a company’s profit that is paid out to shareholders.

Executive Summary

A one-page summary at the beginning of a business plan which provides an overview about what the plan is about and what it will contain.

Exit strategy

An investor’s plan for getting their investment back and potentially realising a profit.

HM Revenue & Customs

A department of the British Government primarily responsible for the collection of taxes and the payment of some forms of state support.

Implementation plan

A business plan section which describes sales, marketing, and operational strategies, including chosen strategies, sales and distribution strategy, and promotional strategy.

Mission statement

A short official written announcement that an organisation makes about the work that it does and why it does it.

Overheads

Ongoing business expenses, such as rent or wages paid to employees.

Privately held corporation

A company owned by founders, management, or private investors that is generally not required to publicise financial information because its shares are not traded on the open market.

Prototype

A first or preliminary version of a device or vehicle from which other forms are developed.

Return on investment (ROI)

A performance ratio used to measure the efficiency of an investment or to compare the efficiency of a number of different investments.

Revenue (or Turnover)

The total income received by a business before any expenses are paid.

Sales forecast

A company’s estimation of future product sales, based on factors such as historical sales data, economic trends, and other brands’ performance.

Appraisal

A formal assessment, typically in an interview, of the performance of an employee over a particular period (synonym: performance review).

Board of directors

The people elected by a corporation's shareholders to oversee the management of the corporation.

Boardroom row

A term used by newspapers to describe an internal dispute amongst a company’s managers or executives.

CEO (or Managing Director)

Abbreviation for 'Chief Executive Officer'; the person with the most authority in a large company, responsible for operations and usually serving as President and Chairman of the Board.

CFO

Abbreviation for 'Chief Financial Officer'; the person heading the finance department, responsible for financial planning and record-keeping.

COO

Abbreviation for 'Chief Operating Officer'; the person in charge of business operations on a day-to-day basis (synonym: general manager).

Delayering

The action or process of reducing the number of levels in the hierarchy of employees in an organization.

Downsizing

Making a company or organization smaller by eliminating staff positions.

Employee benefits

Various forms of non-wage compensation given to employees in addition to normal wages or salaries, including training programmes, health insurance, and pension contributions.

Fat cat

A derogatory term for a wealthy and powerful person, especially a business person or politician.

Go-slow

A form of industrial action in which work or progress is deliberately delayed or slowed down.

Line manager

A manager who heads revenue-generating departments (e.g. production, sales) and is responsible for achieving the firm's main objectives by executing functions such as policymaking.

Non-executive directors (or External directors)

Directors appointed to act as impartial, independent advisors who typically do not engage in day-to-day management but are involved in policymaking and planning processes.

Organigram

An organizational chart that illustrates the structure of an organization and the relationships among its members.

Outsourcing

Obtaining goods or a service by contract from an outside supplier, instead of producing them in-house with your own employees.

Perks

Discretionary non-wage compensation offered to certain employees in addition to normal salary, often provided to senior or specialised staff (e.g. company cars, free meals).

Probationary period

A period of time at the beginning of an employment relationship during which the employer assesses whether the employee is suitable for permanent employment.

Redundancy

The state of being no longer in employment because there is no more work available.

Severance payment

A sum of money paid to an employee on the early termination of their contract.

Stock (or Share) options

A benefit giving an employee the right to purchase shares in their company at a discounted or fixed price.

Work to rule

A form of industrial action where workers follow official working rules and hours exactly, in order to reduce output and efficiency.

Brand identity

The outward expression of a brand, including its name and visual appearance, serving as its fundamental means of consumer recognition and differentiation.

Brand extension

A marketing strategy in which a company uses a well-established brand name to market a product belonging to a different product category.

Brief

The statement of objectives that a client works out with an advertising agency.

Comparative-parity method

Choosing to spend the same amount on advertising as one’s competitors.

Exclusivity

The fact that a product is so expensive that not many people can afford to buy it.

Market penetration

A pricing strategy whereby a low price is set in order to sell a large volume and increase market share.

Market segmentation

Dividing a market into distinct groups of buyers who have different requirements or buying habits.

Market skimming

A pricing strategy whereby a high price is set for a new product in order to make maximum revenue before competing products appear on the market.

Positioning

The way people think about a product in relation to the company's other products and competing products, or the way the company intends for them to think about it.

Price elasticity

The extent to which supply or demand (the quantity produced or bought) of a product responds to changes of price.

Product placement

When the maker of a product arranges for it to appear or be used in a film or television programme as a form of advertising.

Unique Selling Proposition (USP)

The one feature or perceived benefit of a product or service which differentiates it from its competitors.

Viral marketing

Trying to get consumers to forward an online marketing message to other people.

Wholesaler

An intermediary that stocks manufacturers’ goods or merchandise and sells it to retailers and professional buyers.