CAIE AS Level Business (9609) Practice Flashcards

This set of 30 vocabulary flashcards covers key concepts from the CAIE AS Level Business 9609 syllabus, including Enterprise, HRM, Marketing, and Operations.

Land

All natural resources such as minerals used in production, for which the return is rent.

Added Value

The difference between the selling price of a product and the cost of the raw materials used to produce it.

Opportunity Cost

The benefit of the next most desired option that is given up when choosing one option over another.

Intrapreneur

A person within an existing business who takes responsibility for turning an idea into a profitable finished product through innovation and risk-taking.

Quaternary Sector

The portion of the economy focused on knowledge-based services such as computing, ICT, consultancy, and research and development.

Industrialisation

The process in a developing economy where the importance of the secondary sector rises relative to other sectors.

Command Economy

An economic system where only the public sector exists and all resources are planned and controlled by the government.

Limited Liability

A legal protection where shareholders only lose the amount of money they invested in the business if it fails, protecting their personal assets.

Social Enterprise

A business that produces goods and services to achieve social, economic, and environmental objectives, often referred to as the triple bottom line.

Market Capitalisation

A measure of business size for public limited companies calculated as: $\text{current share price} \times \text{total number of shares issued}$.

Horizontal Integration

The merging of two firms in the same industry and at the same stage of production.

Mission Statement

A statement of a business's core aims, phrased to motivate employees and stimulate interest from outside groups.

Stakeholder Concept

The view that businesses and their managers have responsibilities to a wide range of groups, such as customers and employees, rather than just shareholders.

Job Description

A document providing a complete picture of the job roles, rights, and responsibilities associated with a specific vacant position.

Labour Turnover Rate

A measure of the rate at which employees leave an organization, calculated as: $(\text{Number of Employees Leaving in 1 Year} \div \text{Average Number of Employees}) \times 100$.

Induction Training

Introductory training given to new employees to help them understand the procedures, customs, and layout of the organization.

Redundancy

When a worker loses their job because the specific role is no longer necessary for the business, through no fault of the employee.

Scientific Management

F.W. Taylor's theory that reduces inefficiencies by observing tasks, identifying the quickest methods, and paying workers based on output.

Hygiene Factors

Herzberg's term for things like salary and working conditions that do not motivate on their own but cause demotivation if they are absent.

Expectancy Theory

Vroom’s theory that individuals are motivated by the belief that effort leads to performance, which leads to a valued reward.

Mintzberg's Interpersonal Roles

Management roles that involve dealing with people, specifically figurehead, leader, and liaison.

Theory X

A management style identified by Douglas McGregor that assumes workers dislike work, avoid responsibility, and need constant direction.

Market Orientation

An outward-looking approach that makes product decisions based on consumer demand as identified through market research.

Unique Selling Point (USP)

A feature that differentiates a product from its competitors, providing a reason for consumers to choose it over others.

Boston Matrix

A method of analyzing a product portfolio based on market share and market growth, categorizing products as Stars, Cash Cows, Question Marks, or Dogs.

Price Skimming

A strategy of setting a high initial price for a new product with an inelastic demand to differentiate it and recover development costs.

Digital Distribution

The delivery of media content such as audio, video, or software via streaming or downloading rather than physical media.

Productivity

The measure of how inputs are converted into outputs per time period, calculated as: $\frac{\text{Total Output in a given time}}{\text{Total Workers Employed}}$ for labor productivity.

Buffer Inventory

The minimum level of inventory held by a business to deal with delivery delays or unforeseen changes in demand.

Break-even Level of Output

The point where total costs and total revenue are equal, calculated as: $\frac{\text{fixed cost}}{\text{contribution per unit}}$.