Business Vocabulary Practice

A complete set of vocabulary flashcards covering the entire lecture notes transcript across business ownership, operations, finance, human resources, and marketing.

Human resources

the department of a business responsible for managing employees, including recruitment, training and employee welfare

Consumer good

Products intended for direct consumption or use by individuals to satisfy their needs and wants.

Producer good

Goods used by businesses to produce other goods or services.

Private sector

The part of the economy owned and operated by private individuals or companies

Public sector

The part of the economy controlled and operated by the government, providing goods and services for the public good.

Stakeholder

Individuals or groups who have an interest or concern in the activities and outcomes of a business.

Entrepreneur

An individual who starts, operates, and assumes the risks of a business venture in pursuit of profit.

Financial return

The monetary gains or profits realized from an investment or business activity, often expressed as a percentage of the initial investment.

Profit maximisation

The goal of maximizing the financial gains or profits of a business by increasing revenue or reducing costs to the greatest extent possible.

Shareholder

An individual or entity that owns shares or equity in a company and thus has ownership rights and interests in its assets and profits.

Dividends

Payments made by a company to its shareholders as a distribution of profits, usually on a regular basis and in proportion to the number of shares owned.

Profit satisficing

A managerial approach that seeks to achieve a satisfactory level of profit rather than maximizing profits, balancing financial goals with other objectives such as social responsibility or long-term sustainability.

Legislation

Laws and regulations made by the government that businesses and individuals must follow.

Economies of Scale

When average cost per unit decreases because output increases

Large business

A company with a significant scale of operations, typically characterized by a large workforce, extensive resources, and a wide market presence.

Small business

A business with relatively limited scale of operations, often independently owned and operated, with fewer employees and resources compared to larger corporations.

Revenue

The total income or sales generated by a business from its primary activities, typically calculated before deducting expenses and taxes.

Unincorporated

A business and the business owner that dont separate legal identity

Incorporated

A business or organization that has been formally registered and recognized as a separate legal entity with rights and liabilities distinct from its owners or members.

Sole trader

A business owned and operated by a single individual who retains all profits and is personally liable for all debts and obligations.

Unlimited Liability

The legal obligation of a business owner to personally assume all debts and liabilities of the business without limit, risking personal assets.

Partnership

A business owned by 2 to 20 people

Deed of partnership

A legal document that outlines the terms, rights, and responsibilities of partners in a partnership agreement.

Limited partnership

A partnership in which some partners have limited liability and others have unlimited liability, typically with at least one general partner and one or more limited partners.

Limited liability

when the business and the business owner have seperate legal identity and the owner is only repsponsible for the money invested into the business.

Social Enterprise

A business or organization that operates with the primary objective of achieving social or environmental goals while also generating revenue.

Venture Capitalists

Investors or firms that provide funding to startup or early-stage companies in exchange for equity ownership, with the expectation of high returns on investment.

Limited Companies

A business that has a separate legal identity from its owners and where the liability of shareholders is limited to the amount they invested.

Private Limited Company (LTD)

a business who is unable to sell shares and has limited liability

Public Limited Company (PLC)

a business who is able to sell shares to the public but has limited liability

Multinational Company

A corporation that operates in multiple countries, with production facilities, sales operations, and subsidiaries in different parts of the world.

Natural Monopoly

A market situation in which a single firm can efficiently serve the entire market demand due to high barriers to entry or economies of scale.

Privatisation

The process of transferring ownership or control of government-owned or public-sector enterprises to private individuals or companies.

Primary Sector

The sector of the economy focused on the extraction and production of raw materials and natural resources, such as agriculture, forestry, fishing, mining, and quarrying.

Secondary Sector

The sector of the economy involved in manufacturing and processing activities, transforming raw materials into finished goods, and adding value to products.

Tertiary Sector

The sector of the economy that encompasses services and activities that do not directly produce physical goods but instead provide support, distribution, and facilitation of goods and services, such as retail, transportation, banking, education, and healthcare.

Brownfield sites

Previously developed land or urban areas that are abandoned, derelict, or underutilized, often contaminated from past industrial or commercial activities, but potentially suitable for redevelopment or regeneration.

Greenfield sites

Untouched or undeveloped land, typically located outside urban areas, that has not been previously built upon or used for industrial or commercial purposes, offering opportunities for new development projects.

Trade Bloc

A group of countries that form a cooperative agreement to promote trade and economic integration by reducing barriers such as tariffs, quotas, and regulations within the bloc, often aiming to enhance competitiveness and regional cooperation.

Globalisation

Globalisation is the increasing connection and trade between countries, allowing businesses to operate and sell in international markets.

Emerging economies

Developing countries experiencing rapid industrialization, economic growth

Enterprise

A business venture or organization engaged in commercial or entrepreneurial activities, typically involving risk-taking and innovation.

Exports

Goods, products, or services produced domestically and sold or traded to foreign countries or markets.

Imports

Goods, products, or services purchased or acquired from foreign countries or markets and brought into the domestic market for consumption or use.

Visible trade

The exchange of tangible goods between countries, typically recorded in official trade statistics and visible through physical shipments or transportation.

Invisible trade

The exchange of intangible services, such as tourism, financial services, insurance, and intellectual property, between countries, often not physically observed in trade transactions.

Balance of trade

The difference between the value of a country's exports and imports over a specific period, often used as a measure of the trade balance and economic health.

Exchange rate

The value of one currency in terms of another, representing the rate at which currencies can be exchanged or converted.

Trade barriers

Government-imposed restrictions, tariffs, quotas, or regulations that limit or control the flow of goods, services, or investments across national borders.

Capital intensive

A production process or industry that requires a significant amount of capital investment in machinery, equipment, technology, and infrastructure relative to labor costs.

Profit

The financial gain or positive difference between total revenue and total expenses for a business or individual over a specific period.

Communication channels

The pathways or mediums through which communication flows within an organization or between individuals, including face-to-face, email, phone, and memos.

Downwards communication

Communication that flows from higher levels of management or authority to lower levels, providing instructions, feedback, or information.

Upwards communication

Communication that flows from lower levels of an organization to higher levels, conveying feedback, concerns, or information from subordinates to managers or leaders.

Horizontal communication

Communication that occurs between individuals or departments at the same hierarchical level within an organization, facilitating coordination, collaboration, or problem-solving.

Vertical communication

Communication that occurs between individuals or departments at different hierarchical levels within an organization, such as between managers and subordinates.

Internal communication

Communication that occurs within an organization among its members, employees, or departments, facilitating coordination, collaboration, and information sharing.

External communication

Communication that occurs with people outside of the business

Formal communication

Official or structured communication that follows established channels, protocols, or procedures within an organization, often documented or recorded.

Informal communication

Unofficial or casual communication that occurs spontaneously or outside formal channels, such as conversations, rumors, or grapevine communication.

Communication barriers

Factors or obstacles that hinder effective communication, such as language differences, cultural barriers, noise, distractions, or misunderstandings.

Jargon

Specialized or technical language, terminology, or vocabulary used within specific professions, industries, or groups, often difficult for outsiders to understand.

Redeployment

The transfer or relocation of employees within an organization to different roles, departments, or locations, often to meet changing business needs or optimize resources.

Full time

Employment status in which an individual works a standard or regular number of hours per week, typically considered to be $35-40$ hours, often with benefits such as healthcare and retirement plans.

Part time

Employment status in which an individual works fewer hours than a full-time employee, often with a pro-rata salary and limited benefits.

Job share

A work arrangement in which two or more employees share the responsibilities and hours of a single full-time position, dividing the workload and scheduling among themselves.

Casual employment

Employment characterized by irregular hours, temporary contracts, and no long-term commitment between the employer and employee, often used for seasonal or short-term work.

Seasonal employment

Employment that occurs during specific times of the year when demand for goods or services is higher, often associated with industries such as tourism, agriculture, and retail.

Temporary employment

Employment with a fixed duration or specified end date, often used to fill short-term staffing needs, complete projects, or cover for absent employees.

Internal recruitment

The process of filling job vacancies with existing employees from within the organization rather than hiring from outside. This can involve promotions, transfers, or reassignments.

External recruitment

The process of filling job vacancies by seeking candidates from outside the organization. This may involve advertising job openings, conducting interviews, and hiring new employees.

Job advertisement

A public announcement or notice, often in print or online, that describes a job opening and invites qualified individuals to apply for the position.

Minimum wage

The lowest hourly, daily, or monthly wage that employers are legally required to pay to employees, as mandated by government regulations to ensure a basic standard of living.

Training

The process of teaching employees new skills, knowledge, or competencies required to perform their job effectively. Training can take various forms, including classroom instruction, on-the-job training, workshops, and seminars.

Induction training

Also known as orientation training, it is the initial training provided to new employees to familiarize them with the organization, its policies, procedures, culture, and work environment.

On-the-job training

Training that takes place in the actual work setting, where employees learn by performing tasks, receiving guidance from experienced colleagues or supervisors, and gaining hands-on experience.

Off-the-job training

Training that occurs away from the workplace, such as in a classroom, workshop, or training center. It typically involves formal instruction, lectures, exercises, and simulations designed to develop specific skills or knowledge.

Job rotation

A practice where employees are periodically moved or rotated through different roles or positions within an organization. This helps employees gain exposure to different aspects of the business, develop new skills, and broaden their understanding of various functions.

Job satisfaction

The extent to which employees feel content, fulfilled, and happy with their work and work environment. Job satisfaction is influenced by various factors such as job design, work-life balance, recognition, and opportunities for advancement.

Job enrichment

The process of redesigning jobs to increase the intrinsic motivation and satisfaction of employees by adding more meaningful tasks, autonomy, responsibility, and opportunities for skill development and growth.

Gross pay

The total amount of money earned by an employee before deductions such as taxes, insurance, and retirement contributions are subtracted.

Net pay

The amount of money an employee receives after deductions such as taxes, insurance, and retirement contributions are subtracted from their gross pay.

Overtime

Additional hours worked by an employee beyond their regular working hours, often compensated at a higher rate than regular hours.

Salary

A fixed amount of compensation paid to employees on a regular basis, usually on a monthly or annual basis, regardless of the number of hours worked.

Piece rate

A method of payment where employees are compensated based on the number of units or pieces they produce or complete, incentivizing productivity and output.

Performance-related pay

A payment system where an employee’s wages or bonuses are linked directly to the quality or amount of work they produce or the targets they achieve.

Fringe benefits

Non-monetary benefits or perks provided to employees in addition to their regular salary or wages, such as health insurance, retirement plans, vacation days, and employee discounts.

Centralized

A management structure in which decision-making authority is concentrated at the top levels of the organization.

Decentralized

A management structure in which decision-making authority is distributed among lower-level employees or departments.

Flat hierarchy

An organizational structure with few levels of management between the top executives and the employees, promoting a more collaborative and flexible work environment.

Tall hierarchy

An organizational structure with multiple levels of management between the top executives and the employees, resulting in a more rigid and bureaucratic work environment.

Trade unions

Organizations formed by workers to protect their rights and interests, including negotiating with employers on issues such as wages, working conditions, and benefits.

Short term finance

Funding or capital borrowed or acquired for a period of usually less than $1$ year to meet immediate financial needs or to manage cash flow.

Long term finance

Funding or capital borrowed or acquired for a period usually longer than $1$ year, often used for major investments or capital expenditures.

Capital

Money or assets owned by a business or individual that can be used for investment, production, or other purposes to generate income or wealth.

Internal finance

Funds or capital generated within a business through its own operations, such as retained profits or depreciation funds.

Retained profit

The portion of a company's net income or profit that is reinvested back into the business rather than distributed to shareholders as dividends.

Assets

Resources owned by a business or individual that have economic value and can be used to generate future benefits, such as cash, property, equipment, inventory, etc.

External finance

Funds or capital obtained from sources outside of the business, such as loans, investments, or issuing securities.

Bank overdraft

A form of short-term borrowing where a bank allows the account holder to withdraw more money than they currently have in their account, up to a specified limit.