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What is business ethics
Business ethics refers to whether a business decision is thought to be morally right or wrong
What is an ethical decision
An ethical decision is made on the basis of what is judged to be morally right
What is a supplier
A supplier is a business that sells goods or services to other organisations
What are animal rights
Animal rights refers to the idea that animals should be treated humanely and protected from exploitation and abuse
What is social responsibility
Social responsibility is an approach to managing businesses in which the interests of all groups in society are taken into account when making decisions
What are fair trade products
Fair trade products are those for which customers pay higher prices with the aim of improving the living standards of people in poorer countries
What is an ethical policy
An ethical policy sets out the actions that a business will take to ensure that its decisions and actions are ethical
What is motivation
Motivation is the range of factors that influence people to behave in certain ways
What is the environment
The environment is the natural world in which we live. It is the landscape and its natural features such as the seas, rivers, forests and mountains
What are external costs
External costs of production arise when a business's activities result in harmful effects on other people not directly involved in production
What are finite resources
Finite resources are those of which only a limited amount exists.
Examples include coal and oil
What is climate change
Climate change is a large-scale, long-term shift in the planet's weather patterns or average temperatures
What is sustainability
Sustainability refers to methods of production which can be continued in the long term without damage to the environment
What is sustainable production
Sustainable production takes place when producing goods and services does not result in future generations being
affected by, for example, using up non-renewable resources such as oil
What is renewable energy
Renewable energy is produced using resources which are not finite, such as wind turbines or wave power
What is environmental responsibility
Environmental
responsibility refers to the taking of decisions by businesses, consumers, governments and other groups with the intention of protecting the environment
What is recycling
Recycling is the reuse of raw materials used in making products, often for many times. Examples include the reuse of glass, paper and metals
What are environmental reports
Environmental reports are publications describing a business's environmental performance for the business's stakeholders
What is the economic climate
The economic climate describes the state of key factors within a country such as the level of goods and services produced and the number of jobs available
What is the economy made up of
The economy is made up of millions of individual consumers, many thousands of businesses and governments. All take decisions on what to buy and produce
What are consumers
Consumers are individuals who buy goods and services from businesses
What is unemployment
Unemployment exists when someone is looking for a job, but is unable to find one
What is consumer spending
Consumer spending refers to the value of goods and services bought by consumers over a time period,
usually a month or a year
What are income elastic products
Income elastic products are those whose sales are sensitive to changes in consumers incomes
What are interest rates
Interest rates are the price of borrowed money, expressed as a percentage rate
What is saving
Saving is income received by consumers or businesses which is not spent
What is inflation
Inflation measures the rate of change of prices over a period of time, often one year
What is taxation
Taxation exists when governments require payments from individuals and businesses based on factors such as their incomes or spending.
Direct taxes are those paid on income or profit - for example, income tax
What are indirect taxes
Indirect taxes are paid on spending by individuals and businesses - for example, value added tax
What is the unemployment rate
The unemployment rate is the number of people who are unemployed as a percentage of those working or looking for work
What is the employment rate
The employment rate is the percentage of people of working age who are in employment
What is international trade
International trade is the selling of goods and services across the world
What are exports
Exports are goods and services which are produced in one country and sold in another one
What are imports
Imports are goods and services that are bought from producers overseas
What is a supply chain
A supply chain is the various processes involved in producing a product and distributing it to buyers
What is the exchange rate
An exchange rate is the price of one currency expressed in terms of another
What is tariff
A tariff is a tax on an import. It is usually expressed as a percentage of the import's price
What is globalisation
Globalisation is the trend for markets to become worldwide in scope
What is multinational company
A multinational company produces goods and services in more than one country. They are also called transnational corporations
What are global markets made up of
Global markets are made up of customers from across the world
What is an inward investment
Inward investment occurs when governments, businesses and individuals invest capital into another country - for example, building new factories or buying companies
What is a brand name
A brand is a name, design, logo or symbol that makes a product different from those produced by rivals
What is government grant
A government grant is a sum of money given to businesses by a government for a specific purpose. These grants are not normally repaid
What is research & development
Research and development is scientific investigation needed to develop new products and production processes
WEhat is the gig economy
The gig economy refers to businesses that use mainly temporary workers who do not receive benefits such as guaranteed hours of work or holiday and sick pay
What does de-skilling mean
De-skilling means that employees carry out tasks that are less complex and less numerous
What is european single market
The European Single Market made the EU one territory without any internal borders or regulations that could prevent the free movement of goods and services
What is legislation
Legislation is a set of rules that governs the way society operates. It is another term for 'laws'
What is the national living wage
The National Living Wage is an hourly rate of pay which is set by the government. All employees above a certain age must receive at least this rate of pay
What is discrimination
Discrimination is treating one person differently from another without having good reasons to do so
What is a contract of employment
A contract of employment is a legal document stating the hours, rates of pay, duties and other conditions under which a person is employed
What is dismissal
Dismissal takes place when an employer ends an employee's contract of employment with the business
What is redundancy
Redundancy occurs when an employee is dismissed because a job no longer exists
What are consumer laws
Consumer laws are laws that have been introduced to prevent businesses from treating their customers unfairly
What is intellectual property
Intellectual property is inventions, works of art, books, as well as names, symbols and images used by businesses
What is a patent
A patent gives its holder the right to be the only user or producer of a new invention for a stated period of time
What is copyright
Copyright describes the rights that writers and artists have over their works
Whaty is atrademark logo
A trademark is a logo or symbol that distinguishes the products or brands of one business from those of others
What are operations
Operations (or production)
management refers to all the activities in managing the
transformation process
What is production
Production is the process of changing inputs such as labour services into goods and services that can be sold
What is job production
Job production is a method of production in which a product is supplied to meet the exact requirements of a customer
What is batch production
Batch production occurs when groups of items move together through different stages of the production process
What is mass flow production
Mass ('flow')
production techniques occur when an item moves continuously from one stage of the process to another. It involves the large scale production of identical items
What is specialisation
Specialisation occurs when individuals focus on a limited number of tasks
What is procurement
Procurement will involve selecting suppliers, establishing the terms of payment and negotiating the contract
What are logistics
Logistics refers to the movement of goods, services, information and money throughout the production process
What is just-in-time
Just-in-time
production holds as little stock as possible, Items are ordered just in time to be used
What is just-in-case
Just-in-case
production holds stocks just in case there is a delay from suppliers or a sudden unexpected increase in demand
What is customer service
Customer service is the part of a business's activities that is concerned with meeting customers' needs as fully as possible
What is after-sales-service
After-sales service is the meeting of
customers needs after they have purchased a product - for example, by repairing or servicing the product
What are premises
Premises are the buildings used by businesses - these may include offices, shops and factories
What is customer loyalty
Customer loyalty means that a business's customers make repeat purchases because they prefer the business's products to those of its rivals
What is an internal source of finance
An internal source of finance is money that is available from within the business, for example, last year's profits
What is interest
Interest is a payment made in order to borrow money. It means a business pays back more than it borrows
What is owners capital
Owners' capital (also called owners' funds) is money put into a business by its owner or owners
What is an asset
An asset is something that is owned by a business. Examples include land, buildings, vehicles and machinery
What is external source of finance
An external source of finance refers to money that comes from outside the business, for example, a loan from a bank
What is collateral
Collateral is an asset that a bank holds as security for the repayment of a loan
What is an overdraft
Overdrafts give entrepreneurs and businesses the right to borrow variable amounts of money up to an agreed limit
What is a venture capital
Venture capitalists are wealthy people or organisations that provide finance to businesses that are thought to be risky
What is trade credit
Trade credit is a period of time which suppliers allow customers before payment for supplies must be made
What is astart up business
A start-up business is one that has been recently established
What is cash flow
Cash flow is the money that flows into and out of a business on a day-to-day basis
What is price
Price is the amount a business asks a customer to pay for a single product
What is a cost
Costs are the spending that is necessary to set up and run a business
What are sales
Sales refers to the number of products sold by a business
What are the two main types of costs
Fixed costs & variable costs
What is a fixed cost
Fixed costs are those costs that do not alter when a business changes its output
What is a variable cost
Variable costs are the costs that vary directly with the business's level of output
What is loss
Loss is the amount by which a business's costs are larger than its revenue from all sales
What is break-even
Break-even is the level of production at which a business's total costs and total revenue from sales are equal
What is abreak-even chart
A break-even chart shows a business's costs and revenues and the level of production needed to break even
What is contribution
Contribution is sales revenue minus variable costs of production
What is contribution per unit
Contribution per unit is sales revenue minus variable costs of production divided by the number of units of output
Where does an investment happen
Investment takes place when a business buys an asset such as a factory in the hope of making a profit from its use
What is the average rate of return
The average rate of return (ARR) compares the average yearly profit from an investment with the cost of the investment and is stated as a percentage
What is a profit & loss account
A profit and loss account is a financial statement showing a business's sales revenue and costs and thus its profit or loss over a period of time. Profit and loss accounts are also called income statements
What doe sa financial ratio do
A financial ratio compares two figures from a business's financial statements
What is gross profit
Gross profit is a
business's sales revenue minus its cost of sales over a period of time, normally a year
What is net profit
Net profit is a business's sales revenue minus its cost of sales, its overheads and other costs over a period of time, normally a year
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