Leaving Certificate Business - Management and Unit 4

Flashcards covering key vocabulary terms related to Business Management Skills, Human Resources, Finance, Insurance, and Taxation based on the Sixth Year Business notes.

Communication

The process of transferring information from a sender to a receiver through a specific medium, where the receiver interprets and acts upon the message.

Upward Communication

Internal communication where messages flow from lower-level employees to higher-level management, often involving suggestions or questions.

Internal Communications

The exchange of information between people who are all within the same business organisation.

Memorandum (Memo)

A brief, formal written internal document used to communicate from one person to another within a business.

Business Report

A written document setting out findings of an investigation into a specific issue, often including recommendations for future action.

Annual General Meeting (AGM)

A mandatory yearly meeting where directors brief shareholders on business performance and elect the board for the following year.

Quorum

The minimum number of members or shareholders required to be present for a meeting to officially proceed and make valid decisions.

Agenda

A written list of all the topics to be discussed at a meeting, arranged in order of importance.

Minutes of the Meeting

The summarised historical record of what occurred during a meeting, including decisions made and who was in attendance.

Information and Communications Technology (ICT)

The modern electronic methods of communication used by businesses, including EDI, email, and video conferencing.

Electronic Data Interchange (EDI)

A system that electronically links computer systems of different companies to automatically exchange standard documents like orders and invoices.

General Data Protection Regulation (GDPR)

A legal framework that safeguards the privacy rights of individuals regarding the processing of their personal data.

SWOT Analysis

A planning tool used to identify a business's internal Strengths and Weaknesses, as well as external Opportunities and Threats.

Mission Statement

A written document outlining a business's overall purpose, values, and what it hopes to achieve over its lifetime.

Contingency Plan

A backup plan (Plan B) designed to help a business handle emergency situations or unforeseen events effectively.

Chain of Command

The official internal reporting structure from the top of the business hierarchy down to the bottom, showing who reports to whom.

Span of Control

The specific number of subordinates that a manager can effectively and directly supervise.

Matrix Organisation Structure

A structure that combines functional departments with temporary project teams, often resulting in employees having two bosses.

Stock Control

Managing stock levels to ensure there is enough to meet customer demand without carrying excessive, costly surplus.

Just-In-Time (JIT)

A production strategy where goods are manufactured or received only when they are needed for sale or processing, reducing storage costs.

Quality Circle

A small group of employees who volunteer to meet regularly to discuss and solve quality-related issues in the workplace.

Manpower Planning

The HR function of ensuring a business has the correct number of employees with the right skills to meet future objectives.

Job Description

A document highlighting the specific duties, responsibilities, and reporting relationships involved in a particular job vacancy.

Person Specification

A profile of the ideal candidate for a job, outlining required qualifications, skills, experience, and personal characteristics.

Induction Training

The initial training given to new employees to help them settle into the company and understand its culture and procedures.

Performance Appraisal

The systematic process of evaluating an employee's work progress, contribution, and effectiveness over a specific period.

Total Quality Management (TQM)

A business strategy focused on continuous improvement and customer satisfaction, making quality the responsibility of every employee.

Profit and Loss Account

A financial statement showing a business's sales revenue, cost of sales, and expenses to determine the net profit or loss for a year.

Balance Sheet

A financial statement showing the wealth of a business on a specific date, including Assets, Liabilities, and Capital Employed.

Working Capital

The difference between Current Assets and Current Liabilities, representing the cash available for day-to-day operations.

Return on Investment (ROI)

A profitability ratio that measures how effectively a business uses its capital to generate profits.

Debt Equity Ratio

A ratio comparing the amount of long-term borrowed money to the amount invested by the owners (gearing).

Utmost Good Faith

An insurance principle requiring the absolute disclosure of all material facts when applying for cover.

Indemnity

The insurance principle stating that a claimant should be put back in the same financial position they were in before the loss, with no profit made.

Average Clause

A rule used in cases of under-insurance where only a fraction of the claim is paid based on the ratio of cover to the asset's true value.

Subrogation

The principle where, after paying a claim in full, the insurer takes over the claimant's legal rights to any recovered items or legal actions.

PAYE (Pay As You Earn)

A system where income tax is deducted directly from an employee's gross wages by their employer.

Cash Flow Forecast

A financial plan setting out expected cash receipts and payments over a future period to identify potential surpluses or deficits.

Hire Purchase

A medium-term source of finance where an asset is used immediately but paid for in instalments, with ownership passing only after the final payment.

Leasing

A source of finance where a business pays to rent an asset for a fixed period; the business uses but never owns the asset.