Business Terminology Flashcards

Vocabulary flashcards encompassing key business terms and their definitions.

Academic journals

Publish research-based articles written by experts.

Acid Test Ratio

Measures a company's ability to meet short-term liabilities using its most liquid assets (excluding inventory).

Agents

Intermediaries between producers and buyers who do not take ownership of the goods.

Amortization

The process of writing off the cost of an intangible asset over its useful life.

Ansoff Matrix

A strategic tool used to analyze and plan business growth strategies based on market and product development.

Appraisals

Formal evaluations of an employee's performance over a specific period.

Arbitration

A process where a neutral third party makes a binding decision to resolve a dispute.

Artificial Intelligence (AI)

Computer systems that analyze data, predict outcomes, and perform tasks traditionally requiring human intelligence.

Autocratic leadership

A leadership style where the leader makes all decisions with little or no input from employees.

Average Rate of Return

Measures the profitability of an investment as a percentage of the initial or average investment cost.

Bank loan

A sum of money provided by a bank to a business, which is repaid with interest over an agreed period.

Bankruptcy

A legal process where an individual or business declares they are unable to repay outstanding debts.

Barriers to communication

Obstacles that prevent the effective exchange of information.

Batch Production

A manufacturing method where a group of identical products is produced together in stages.

Big data

Large and complex datasets that traditional methods cannot process effectively.

Biodegradable Materials

Substances that naturally decompose over time without harming the environment.

Book Value

The value of an asset as recorded in financial statements, usually the original cost minus depreciation.

Boston Consulting Group Matrix (BCG Matrix)

A strategic tool used to analyze a company’s product portfolio based on market growth rate and relative market share.

Brand

A name, term, sign, symbol, or design that identifies the goods or services of a seller.

Brand loyalty

Measures the extent to which customers repeatedly choose a brand over competitors.

Budget

A financial plan that estimates income and expenses over a specific period.

Crisis management

Involves an immediate response to unforeseen, high-impact events.

Customer centric approach

A business strategy that prioritizes the needs, preferences, and experiences of customers.

Decentralization

Distributes decision-making authority to lower levels of the organization.

Digital Taylorism

The use of technology to track employee performance and optimize workflows.

Economies of scale

Occur when a business's average cost per unit decreases as its production scale increases.

Entrepreneurship

The process of starting and operating a new business venture.

Financial rewards

Monetary incentives provided to employees in exchange for their work.

Intangible Assets

Non-physical assets with value, such as patents, trademarks, copyrights.

Market research

The process of gathering, analysing, and interpreting information about a market.

Outsourcing

Hiring external firms to handle specific tasks or processes.

Profit Margin

Measures the percentage of net profit relative to net sales.

Return on Capital Employed (ROCE)

A profitability ratio that measures how efficiently a company generates profit from its capital.

Sustainability

The practice of producing goods and services in a way that minimizes environmental impact.

SWOT analysis

A strategic planning tool used to identify internal strengths and weaknesses and external opportunities and threats.

Working capital

The difference between a business’s current assets and current liabilities.