Business
Terms
undefined, object
copy deck
- laissez-faire leadership
- Employees are left to make many of the decisions rather than receiving clear
- contribution
- The sales revenue of an item (its price) minus the variable cost of making and
- fixed costs
- Costs which do not change as output changes.
- fixed assets
- Assets which are used to help production take place.
- globalisation
- The increase in worldwide competition between businesses
- lean production
- A method of being efficient and cutting out waste in a production system.
- balance sheet
- An account that gives a statement of a firms wealth on a particular date and
- field research
- Data collected for a specific purpose at the time it is required and usually
- appropriation account
- The section of the profit and loss account showing what happens to any net
- franchisor
- The person or organisation selling the right to operate a franchise.
- acid test ratio
- This measures the liquidity of a business and is calculated by the ratio of current
- branding
- Identifying a product by giving it a unique brand name and making it special in
- kaizen
- A method of continuous improvement within a workplace
- franchisee
- The person or organisation buying the right to operate a franchise outlet.
- division of labour
- When the production process is split up into different tasks and each worker
- current liabilities
- These are debts which the firm has to repay within one year.
- market research
- The data collected about existing and potential markets.
- franchise
- The right to trade under an established name.
- labour turnover
- The number of employees leaving a firm over a period of time.
- finance - short term
- Money borrowed for between one day and three years. It is mainly needed to
- batch production
- The production of a similar or identical good in batches with production stopped
- debtors
- These are people or organisations who have bought goods or services from a
- cost of sales
- The cost of goods made or bought by a business. It is calculated by taking
- cooperative
- An enterprise where a group of people either work together or buy or sell
- delegation
- Giving others the authority to undertake a task.
- entrepreneur
- A person who is willing to take a risk by investing money into a business,
- diversification
- This is when a business expands by moving into new markets. This might be
- go slow
- A form of industrial action when the employees do their normal tasks more
- market leader
- The number one firm in the market for a particular product measured by its
- chain of distribution
- The way in which goods get from the manufacturer to the producer
- collective bargaining
- Negotiations on industrial relations matters with all sides represented.
- fringe benefits
- Non monetary rewards given as incentives to employees.
- contract of employment
- A written document detailing an employees terms and conditions of
- job enrichment
- Adding tasks which require more skill and/or responsibility
- chain of command
- A structure within a firm allowing instructions to be passed downwards through
- liabilities
- The debts of a business both long and short term.
- grants
- Money given to a firm to help it to operate and expand. This does not have to be
- person specification
- Document which outlines the requirements, qualifications and expertise required
- hierarchy
- An organisation in which power and responsibility are built up in layers with the
- cash flow forecast
- A prediction of future flows of cash into and out of a business set out in a chart
- job rotation
- Changing the work of employees on a regular basis to give them more
- job enlargement
- Similar extra tasks are added to a workers job description.
- gross profit margin
- A comparison of the Gross Profit of a firm with its sales revenue calculated as a
- depreciation
- The method of lowering the value of fixed assets for wear and tear.
- board of directors
- Appointed by shareholders to decide policy and run the company.
- exports
- Goods and services sold to other countries.
- enterprise zone
- A small area usually with high unemployment given special help by the
- inflation
- A rise in average price levels of goods and services measured by the retail price
- conglomerate
- A business that operates in many different markets.
- assets
- Everything that a company owns and has a money value.
- current ratio
- This measures a firms ability to pay short term debts by comparing its current
- job descrition
- A document which outlines the responsibilities and duties expected of an
- current assets
- These are assets which can be easily turned into cash such as stock and debtors.
- authoritarian
- This style of management means that one person makes the decisions.
- job production
- Producing a single one-off product or service to meet the individual
- vertical integration
- A firm expands by moving into a smaller, but different, area of production eg
- hire purchase
- The buying of equipment by paying in instalments, usually including interest.
- herzberg theory
- Motivation of employees through pay and hygiene factors
- expenses
- All the operating costs of a firm, sometimes called overheads.
- creditors
- These are people or organisations who have supplied goods or services to a firm
- horizontal integration
- One firm merging with another in the same industry at the same stage of
- annual general meeting
- A legal requirement to hold a meeting once a year for all shareholders to vote in
- just in time (JIT)
- A strategy involving the supply of stocks to the producer just in time for their
- costs of production
- Payments for buying or hiring the resources needed to make a product, sell
- bonus
- Additional amounts of money above normal pay as a reward for good work.
- democratic leadership
- This style of management allows employees to take part in decision making.
- commission
- Payment relating to the number of sales made, often calculated as a percentage
- loans
- A specific sum of money borrowed for a fixed period of time with interest
- long term liabilities
- Capital borrowed for use in a business to be repaid in a time period of longer
- accounts
- The financial records of a firms transactions.
- loss leader
- A product that is deliberately sold for less than its cost price to attract customers.
- factors of produuction
- These are the resources needed to produce goods or services
- cost plus pricing
- The cost of making the product plus a percentage for profit mark up.
- induction training
- For new staff, an introduction to the company, its organisation, its rules and
- flow production
- The manufacturing of identical goods in large numbers on a continuous
- business plan
- A detailed outline of a businesss intention over a period of time.
- competitive pricing
- Companies base their prices according to competitors prices
- limited liability
- Responsibility for debt is limited to the amount of money put into a business
- gross profit
- The difference between sales revenue and cost of sales.
- consumer
- A person who uses goods and services.
- diseconomies of scale
- These disadvantages arise when a firm becomes too large to manage effectively
- breakeven point
- The level of sales at which total costs equal total revenue
- direct costs
- Costs which are directly related to a production process.
- finance - long term
- Money borrowed for at least ten years which will be used to start up larger
- industrial action
- The action taken by employees to slow down or halt the production of goods or
- imports
- The purchase of goods or services from overseas.
- economies of scale
- These are the advantages of producing large quantities of output. These should
- capital employed
- This is the total amount of capital or money put into the business.
- fiscal policy
- The use of government spending and taxation to control the state of the
- limited company
- A business structure which has a separate legal identity to its owners known as
- chain of production
- The stages through which a product will pass during production.
- exchange rate
- The price or value of one currency compared to another.
- desk research
- This is data which has been previously gathered for another purpose. It can also
- indirect costs
- Costs which cannot be related to a particular product, often called overheads.
- delayering
- The removal of a layer of management in an organisation.
- assisted areas
- Large areas or parts of a region that are identified for assistance by the
- disposable income
- The money available for use by a consumer after taxes, national insurance and
- dividend
- Payments made to shareholders from the profits of a company.