Studied by 5 people
18.35 - 18.51 16min 18.51-19.14 23min 19.14-19.36 22min 19.36-19.51 15min 8.13
absenteeism
employee’s non-attendance at work without good reason
acid test ratio
ratio between liquid assets and current liabilities
adding value
selling a product for more than it cost to produce it
advertising
paid-for communication with consulers which uses printed and visual media. the aim is to infor, and persuade consumers to buy a product
annual general meeting
a meeting for shareholders that limited companies must hold once every year
appreciation
a currency is said to appreciate if the value of the currency increases with respect to another currency
appropriation account
records the distribution of profit after tax; usually dividends and retained profit
asssets
resources that are owned by a business
autocratic leadership
a nleadership style in which the leader makes all the decisions
average costs
the cost of producing a single unit of output
balance of payments
the difference between the value of export and import of goods and services of a country over a year
bank loan
provision of finance by bank which the business will repay with interest over an agreed period of time
barriers of trade
usually taxes, quotas or bans that one country places on the goods of other countries to prevent or increase the cost of them entering that country
batch production
the production of goods in batches. each batch passes through one stage of production before moving on to the next stage
below the line production
promotion that is not paid for communication but usees incentives to encourage consumers to buy
bonus
an additional reward paid to employees for achieving goals set by managers
brand
a name, image or symbol that distinguishes a product from competitors’ products
brand image
the genral impression of a product held by consumers
breask-even
the level of output where revenue equals total costs; the business is making neither profit nor loss
business activity
the process of producing goods and services to satisfy consumer demand
business environment
the combination of internal and external factors that influence the operations of a business
business plan
a detailed written document outlining the purpose and aims of a business which is often used to persuade lenders or investors to finance a business proposal
business start up
a newly formed business. they usually start small, but some might grow to become much bigger
capital expenditure
spending by a business non-current assests such as machnery or buildings
capital goods
physical goods used by other businesses to help produce other goods and services such as machinery and delivery vehicles
capital intensive
a production using a hjigh quantity of capital equipment compared with labour input
capital productivity
a measure of the efficiency of the captial by calculating the output per capital employed
cash-flow forecast
an estimate of the future cash inflows and outflows of a business
centralised organisation
one where all the important decision making is held at head office or the center
chain of command
the route through which authority ois passed down through an organisation
chain of production
the production and supply of goods to the final consumer involving activities from primary, secondary, and tertiary sector businesses
channels of distributions
how a product gets from the producer to the final consumer
Chef executive officer CEO
the most senior manager responsible for the overall performance and success of a company
collateral
non current assets offered as security against borrowing
commision
payment to the sales staff based on the value of the items they sell
communication media
the mehtods used to communicate a message
competitive pricing
setting a price similar to that of competitors’ products which are already established in the market
consumer
the final user of a product
consumer goods
products which are sold to the final consumer. they can be seen and touched
consumer markets
markets for goods and services bought by the final consumer
consumer services
non-tangible products such as insurance, sevices, transport
corporate social responsability CSR
business taking responsability for the impact their acitivties might have on society and the environment
cost-benefit analysis
analysis of the costs and benefits of a project, the focus being on the social costs and benefits
costs of sale
the costs of producing the goods used to make the products sold
cost-plus pricing
setting price by adding a fixed amount to the cost making or buying the product
credits sales
goods sold to customers who will pay for thos at an agreed date in the future
crowd-funding
financing a business idea by obtaining small amounts of capital from a large number of people, most often using the internet and social media networks
current assets
resources that the business owns and expects to convert into cash before the date of the next statemnt of financial position
current liabilities
debts of the business which it expects to pay before the date of the next statement of financial position
current ratio
the ration between current assets and current liabilities
customer
an individual or business that buys goods & services from a business
customer base
the group of custormers a business sells its products to
customer relationship marketing
using marketing activites to establish, maintain and improve relationships with customers to build customer loyalty
debenture
a bond issued by a company to raise long-term financeusually at a fixed rate of interest
debt factoring
selling trade recievables to improve business liquidity
decentralised organisation
one where the decision making powers are passed down the organisation to lower levels
delayering
reducing the size of the hierarchy of a business by removing one or more levels - most often middle management
delegation
passing responsability to perform taks to employees lower down in the organisation
demand
the quantity of goods and sercixes consumers are willing and able to buy
democratic leadership
a leadership style where employees take part in decision making
demographic segmentation
dividing consumers in the marker by factors such as age, gender, income, etchnic background and social class
depreciation
a cuurency is said to depreciate if the value of the currency goes down with respect to another
direct mail
also known as '“mailshots”; printed materials which are sent driectly to the addresses of customers
direct selling
the product is sold by the producer directly to the final consumer without the need for any middlemen
direct tax
the tax charged on personal income or tax on the profit made by a business
directors
appointed or elected members of the BOard of directors of a company who have the repsonsability for determinging and implementing the company’s policy. some directors might also have a management role, for example a marketing director
diseconomies of scale
factors that cause average coqts to rise aas the scale of operations increases
dismissal
termination of employment by the employer because employee has broken company rules or is not performing work to the required standards
disposable income
the amount of income left for indviduals after atxes have been paid
divident
a payment, out of profits, to shareholders as reward for their investment
division of labour
producttion is divided into seperate tasks and each employee does just one of those tasks
domestic market
the market for goods and services in the business’s own country
E-commerce
the use of the internet and other technologies sued by businesses to market and sell goods and services to customers
Economic problem
unlimited wants cannot be met because thre are limited factors of production. this creates scarcity
economies of scale
the reduction in average coests as a result of increasing the scale of operations
effectivve communication
information passed between two or more people or groups, with feedback to confirm that the message has been recieved and understood
entrpreneur
an individual who takes the financial risk of starting and managing a new business
equity finance
permanent finance provided by the owners of a limited compnay
exchange rate
the rate at which one country’s currency can be exchanged for that of another
expenses
day to day operating expanses of a business
extension strategies
marketing acitivties to extend the maturity stage of a product
external recruitment
filling a vacant post with somebody not already employed in the business
externality
the effect of business activites on unrelated parties
factors of production
the resources needed to produce goods and services - land, labour, capital and enterprise
feedback
the receiver’s response to a message
financial rewards
cash and non-cash rewardsd paid to employeed which are often used to motivate employeed to increase their efforts
fixed costs
costs that do not cnage with output
need
a good or service essential for living
want
a good or service that pepople would like to have but is not necessary for living. People have unlimited wants
economic problem
there are unlimited wants but limited resources to produce the goods and servides to satisfy wants. this creates scarcity
factors of production
resources needed to produce goods and services. they are limited in supply
1) Land
2) Labour
3) Capital
4) Enterprise
scarcity
the lack of sufficient products to fulfill the total wants of th epopulaiton
Opportunity cost
the next best alternative given up by choosing another item
Specialization
when people and businesses concentrate on what they’re best at
division of labour
when the production process is split up into different tasks and each worker performs one of these tasks. It is a form of specialization
added value
the difference between the selling price of a product and th ecost of bought in materials and components
primary sector
extracts and uses natural resources to produce raw materials used by other businesses.
secondary sector
manufactures goods using raw materials provided by primary sector
tertiary sector
provides services to costumers and other sectors of industry
de-industrilization
there is a decline in the importance of the secondary sector of industry in a country
Note 
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