1 Flashcards
Above-the-line promotions
marketing communications
using mass advertising media.
Accountant
a person who specializes in keeping and
inspecting financial records and preparing financial
statements.
Accounting year
the 12-month period for which a
business prepares its income statement.
Accounts receivable
a balance sheet term for debtors. It is the total amount of money owed to the business by customers who have purchased items on credit terms payable within the next 12 months.
Accounts payable
a balance sheet term for creditors. It is the total amount of money owed by the business to suppliers who have sold items on credit terms that it must repay within the next 12 months.
Acid test ratio
current assets less inventories expressed as a ratio of current liabilities.
Ancillary firms
firms that supply business support services to other organizations, such as transportation, marketing and equipment maintenance services.
Appreciation
a rise in the value or market price of a national currency against another currency or currencies.
Arbitration
a process involving the judgement of an independent person or body to help resolve industrial disputes between workers and employers.
Autocratic leadership
telling employees what to do without consultation.
Average cost
the cost of producing each unit of output.
Balance of payments
a record of all the financial transactions between a country and all the other countries with which it trades.
Balance sheet
a statement recording the value of assets, liabilities and capital of a business on a given date.
Bankruptcy
a term used for a business that is declared
in law as unable to pay its debt.
Batch production
production of a limited number of identical products to meet a specific requirement or customer order. Each new batch may be slightly different from the last one produced.
Below-the-line promotions
marketing promotions that do not use mass media.
Brand name
a name used to identify and distinguish specific goods, services or businesses from others.
Centralized organization
an organization in which authority, responsibility and decision-making is concentrated at the top of the chain of command.
Chain of command
the line of management authority in a hierarchical organization.
Collateral
assets of value that a customer can offer as
security against a loan.
Competition
rivalry between businesses trying to win consumers’ acceptance, sales and loyalty.
Computer-aided design (CAD)
the use of computer
systems to create, modify and optimize the design of
a product.
Computer-aided manufacturing (CAM)
the use of computers to control and monitor the use of machinery and equipment in a manufacturing process.
Cost of sales
the cost of the items sold,
