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T-Level Finance > 1.1 Fundamentals and Principles of Buisness > Flashcards

1.1 Fundamentals and Principles of Buisness Flashcards

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1
Q

Auditing

A

Independent examination of financial information to verify accuracy, compliance, and reliability.

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2
Q

Banking Services

A

Financial services provided by banks, including deposit accounts, loans, and transactions.

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3
Q

Borrowing

A

Obtaining funds from external sources with the agreement to repay, allowing companies and governments access to financial resources.

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4
Q

Break-Even

A

The point at which a business’s revenue equals its expenses, covering costs and achieving a balanced financial state.

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5
Q

Budgeting

A

The process of creating a detailed plan for the use of financial resources, setting targets and controlling expenses.

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6
Q

Capital Depreciation

A

The reduction in the value of assets over time, impacting the company’s financial statements and profitability.

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7
Q

Capital Market

A

Consists of primary and secondary markets for trading equity securities (stocks) and long-term debt securities (bonds) on a global scale.

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8
Q

Cash Flow

A

The movement of money in and out of a business, indicating its ability to meet short-term financial obligations.

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9
Q

Cash Flow Management

A

The monitoring and control of cash inflows and outflows to ensure a business has sufficient liquidity for its operations.

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10
Q

Challenges

A

Difficulties or obstacles faced as a result of globalisation, including disruptions, risks, and the need for consistent reporting standards.

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11
Q

Civic Duty

A

The responsibility of businesses to contribute to the economic and social well-being of society, including paying taxes and supporting government priorities.

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12
Q

Commodities

A

Goods or raw materials bought and sold internationally, playing a significant role in global trading activities.

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13
Q

Communication

A

The exchange of information and ideas between individuals or groups, a crucial factor driving globalisation.

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14
Q

Competing Needs

A

Conflicting interests or demands of stakeholders that may require businesses to make trade-offs to satisfy different groups.

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15
Q

Competitive Advantage

A

The unique qualities or strategies that allow a business to outperform its rivals and gain a stronger market position.

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16
Q

Competitiveness

A

The ability of a business to outperform rivals and gain an edge in the market, often achieved through strategic positioning.

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17
Q

Competitors

A

Other businesses operating in the same market or industry, influencing market trends, pricing, and product quality.

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18
Q

Confidentiality

A

The protection of sensitive information from unauthorized disclosure, crucial in specific contexts such as contract negotiations and mergers.

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19
Q

Conflicts

A

Disagreements or tensions arising from differing interests among stakeholders, requiring management intervention.

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20
Q

Consumers

A

Individuals or entities that use goods and services to satisfy their needs and wants.

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21
Q

Contract Negotiations

A

Discussions between parties to reach agreements on terms, conditions, and obligations, requiring confidentiality to protect business-related details.

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22
Q

Cost Control

A

Managing expenses and resource utilization responsibly to ensure the sustainable use of public resources.

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23
Q

Cost of Borrowing

A

The expense incurred by a company when borrowing funds, including interest and fees.

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24
Q

Credit Cards

A

Payment cards that allow users to make purchases on credit, with the obligation to repay the borrowed amount.

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25
Q

Customer-Focused Approach

A

Business strategy prioritizing customer needs and satisfaction, considering factors like price, quality, and service.

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26
Q

Deposit Holders

A

Individuals or entities that deposit money in banks or financial institutions, entrusting them to safeguard funds.

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27
Q

Development

A

The ongoing effort to enhance the capabilities and career progression of employees within the organization.

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28
Q

Differentiation

A

The process of making a business or its products distinct from competitors to gain a competitive advantage.

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29
Q

Differing Needs

A

Varied requirements and expectations of stakeholders based on their relationship with the business, leading to potential conflicts.

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30
Q

Distribution Channels

A

The pathways through which products or services are made available to customers, involving intermediaries like wholesalers and retailers.

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31
Q

Diversification

A

Broadening the range of products or services offered by a business to mitigate risks and explore new opportunities.

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32
Q

Diversify

A

Spreading investments across different assets or markets to reduce risk and enhance the potential for returns.

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33
Q

Dividends

A

Payments to shareholders from company profits, often in the form of cash or additional shares.

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34
Q

Economic Development

A

The process of improving the economic well-being and quality of life for a community, region, or country.

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35
Q

Economic Security

A

The state of stability and resilience in a country’s economy, achieved by addressing overseas competition and reducing dependence on imported goods.

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36
Q

Efficiency

A

Maximizing productivity, minimizing waste, and optimizing resource allocation to achieve operational effectiveness.

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37
Q

Employment Opportunities

A

Job positions created by businesses, enabling individuals to earn a living and support personal and family needs.

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38
Q

Entrepreneurship

A

The activity of identifying opportunities, innovating, and taking risks to create and manage a business venture.

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39
Q

External Stakeholders

A

Entities outside the business but with a significant influence on its success, including customers, suppliers, government, and the local community.

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40
Q

Factors of Production

A

Resources required for business operations, including labor, capital, raw materials, and entrepreneurship.

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41
Q

Finance

A

The management of money and other financial resources, involving activities such as lending, investing, and providing financial services.

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42
Q

Financial Advisers

A

Professionals who provide advice and guidance on financial matters, such as investments, retirement planning, and risk management.

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43
Q

Financial Context

A

The perspective that focuses on the financial aspects of business operations, including revenue, profit, and shareholder value.

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44
Q

Financial Health

A

The overall well-being and stability of a business or organization, assessed through financial indicators and reports.

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45
Q

Financial Performance

A

The evaluation of a business’s profitability, liquidity, solvency, and overall financial health.

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46
Q

Financial Prudence

A

Sound financial management practices, including budgeting, monitoring, and control, to achieve business objectives.

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47
Q

Financial Records

A

Systematic documentation of financial transactions and activities, ensuring accurate and transparent financial reporting.

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48
Q

Financial Resources

A

Monetary assets, including funds available for investment, spending, or other financial activities.

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49
Q

Financial Stability

A

The condition in which an individual, business, or economy has a stable financial situation without excessive debt or financial risk.

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50
Q

Financial Statements

A

Documents that present the financial performance and position of a business, including the balance sheet and income statement.

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51
Q

Fintech Disruption

A

The impact of financial technology innovations on traditional banking and financial services, leading to changes in the industry landscape.

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52
Q

Global Economy Markets

A

Various markets, including consumer, business (B2B), and government (B2G) markets, operating at both local and international levels.

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53
Q

Global Market Fluctuations

A

Changes in the international market that can impact the stability of a country’s economy, emphasizing the need for businesses to be resilient and self-sufficient.

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54
Q

Global Scale

A

The ability of businesses to operate and reach consumers and partners on an international level, beyond national boundaries.

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55
Q

Global Trading

A

Involves financial markets such as the global money market and the global capital market, facilitating currency exchange, short-term financing, and the trading of securities.

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56
Q

Globalisation

A

The process of businesses expanding their operations and influence on a global scale, involving international markets and operations.

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57
Q

Goods and Services

A

Products and offerings provided by businesses to fulfill the needs and wants of consumers.

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58
Q

Government

A

The governing body of a country, involved in international trade and financial transactions to meet economic and strategic goals.

59
Q

Growth

A

The expansion of a business’s operations, market share, or customer base, aiming for increased profitability.

60
Q

Human Resources

A

The management of the workforce in a business, involving various aspects such as recruitment, remuneration, training, and labor relations.

61
Q

Incentives

A

Rewards or motivators offered to employees to encourage specific behaviors or achievements in the workplace.

62
Q

Inconsistencies

A

Lack of uniformity or discrepancies in financial reporting, highlighting the need for standardized reporting practices in a globalised context.

63
Q

Industrial Action

A

Collective activities taken by workers, such as strikes or protests, to influence workplace conditions and negotiations.

64
Q

Interests

A

Varied goals and expectations that stakeholders have, which may include financial gains, job security, or product/service quality.

65
Q

Internal Stakeholders

A

Individuals or groups within a business with a direct interest in its operations and outcomes, such as employees, managers, and shareholders.

66
Q

Investing

A

Allocating capital to gain returns or profits, a key aspect of global financial markets for both businesses and individual investors.

67
Q

Investments

A

Allocation of money to assets, such as stocks or bonds, with the expectation of generating income or profit.

68
Q

Lending

A

Providing funds to external entities with the expectation of repayment, a common activity in global financial markets.

69
Q

Loans

A

Sum of money borrowed from a lender that must be repaid, typically with interest, over an agreed-upon period.

70
Q

Long-Term Strategic Plans

A

Fundamental blueprints guiding a business over an extended period, outlining overarching goals, mission, vision, and strategies for sustainable growth.

71
Q

Management

A

The process of planning, organizing, coordinating, and controlling resources to achieve the goals of an organization.

72
Q

Managing Stakeholder Needs

A

The process of addressing and satisfying the needs of both internal and external stakeholders to ensure overall business success.

73
Q

Market Conduct

A

Business behavior within the market, encompassing pricing, marketing strategies, and responses to competitors.

74
Q

Market Context

A

The perspective that focuses on the dynamics of meeting consumer needs, competitive pressures, and differentiation in the market.

75
Q

Market Economy

A

An economic system where prices and production are determined by competition and consumer demand.

76
Q

Market Leadership

A

Establishing a dominant position in the industry to shape market trends and influence competitors.

77
Q

Market Positioning

A

Determining the image and identity of a brand or product in the market, influencing consumer perception and choices.

78
Q

Market Trends

A

Patterns and shifts in consumer behavior and preferences, crucial for businesses to analyze and adapt to.

79
Q

Marketing Strategies

A

Plans and tactics used by businesses to promote their products or services, attract customers, and gain a competitive advantage.

80
Q

Maximizing Shareholder Value

A

Making decisions that enhance the financial interests and returns of shareholders while considering other stakeholders.

81
Q

Merger Negotiations

A

Talks between companies to combine their operations, necessitating confidentiality to prevent premature disclosure of sensitive information.

82
Q

Mergers and Acquisitions

A

Strategies involving the combination of companies through mergers or the acquisition of one company by another.

83
Q

Money Market

A

Deals with foreign exchange and short-term loans, providing liquidity and financing for businesses and governments globally.

84
Q

Mortgages

A

Loans secured by real estate, typically used to finance the purchase of a home.

85
Q

Needs and Wants

A

Distinctive elements that drive consumer demand. Needs are essential for survival, while wants enhance quality of life.

86
Q

Not-for-Profit

A

An organization, such as a charity or social enterprise, that operates with a mission to create positive social or environmental impact.

87
Q

Operational Plans

A

Plans covering a timeframe of one to three years, translating high-level strategic goals into actionable steps and milestones for resource allocation and coordination.

88
Q

Opportunities

A

Favorable circumstances or situations arising from globalisation, such as expanded markets and increased business prospects.

89
Q

Opportunity Cost

A

The value of the next best alternative foregone when a decision is made, reflecting trade-offs in decision-making due to limited resources.

90
Q

Personal Loans

A

Loans provided to individuals for personal use, often unsecured and based on the borrower’s creditworthiness.

91
Q

Premature Disclosure

A

Unauthorized release of sensitive information before an appropriate time, which can negatively impact business negotiations or market perception.

92
Q

Pricing

A

The strategy of determining the cost of products or services based on market factors, competition, and business objectives.

93
Q

Private Business

A

A business owned and operated by private individuals or companies for profit, not publicly traded.

94
Q

Private Sector

A

Businesses and industries owned and operated by private individuals, companies, or shareholders for profit.

95
Q

Procurement

A

The process of obtaining goods and services, including negotiations, purchasing, and supplier relationship management.

96
Q

Product Development

A

The process of creating and improving products to meet consumer needs and respond to market demands.

97
Q

Profit

A

The financial gain obtained when revenue exceeds expenses, a key objective for private businesses.

98
Q

Profitability

A

The ability of a business to generate profit, typically measured by the ratio of earnings to expenses.

99
Q

Promotion

A

The advancement of employees to higher roles or positions within the organization based on performance and skills.

100
Q

Public Business

A

An organization, often government-related, providing services for the public good and not driven by profit motives.

101
Q

Public Sector

A

Organizations and services owned or funded by the government, providing essential services for the public good.

102
Q

Quality

A

The standard or level of excellence of products or services offered by a business, influencing customer satisfaction.

103
Q

Recruitment

A

The process of attracting, assessing, and hiring qualified individuals to fill positions within the organization.

104
Q

Regulatory Compliance

A

Adherence to laws and regulations governing business operations, including data protection, health and safety, and financial reporting.

105
Q

Regulatory Oversight

A

The supervision and monitoring by regulatory authorities to ensure compliance with laws and regulations in the financial industry.

106
Q

Remuneration

A

The compensation or payment provided to employees for their work, including wages, salaries, and benefits.

107
Q

Reporting Standards

A

Consistent guidelines and frameworks for reporting financial information, essential for transparency in global financial transactions.

108
Q

Research and Development

A

The process of innovating and improving products or processes through systematic investigation and experimentation.

109
Q

Resource Allocation

A

The distribution of resources such as capital, labor, or assets to specific projects or investments within a business.

110
Q

Retained Earnings

A

Profits that a company keeps for reinvestment in its operations, rather than distributing them to shareholders.

111
Q

Returns

A

The gains or profits obtained from an investment or business activity, a crucial factor in evaluating opportunity costs.

112
Q

Returns on Investment

A

The financial gains or losses generated from investments made by a company.

113
Q

Revenue

A

The total income generated by a company from its operations, including sales of goods or services.

114
Q

Risk

A

The likelihood of an adverse event occurring, especially in the context of business ventures and investment decisions.

115
Q

Risk Management

A

The identification, assessment, and mitigation of potential risks to minimize their impact on business operations.

116
Q

Risk-reward Trade-offs

A

Balancing the potential for profits with the level of risk involved, a crucial aspect of decision-making in business.

117
Q

Service Provision

A

Delivering essential services efficiently and effectively to meet the needs of the public, a primary objective for public sector organizations.

118
Q

Service Quality

A

Emphasizing the delivery of reliable, accessible, and satisfactory services to the public, a key objective for public sector organizations.

119
Q

Shareholders

A

Owners of a company, each with their own expectations and goals, primarily seeking profits from their investments.

120
Q

Short-Term Business Tactics

A

Day-to-day actions and decisions undertaken to achieve immediate or near-term objectives, closely aligned with operational plans and strategic goals.

121
Q

Skill, Care, and Diligence

A

Attributes expected from a competent workforce, involving proficiency, attentiveness, and careful execution of duties.

122
Q

Skills Shortages

A

Gaps in the workforce where specific skills or qualifications are lacking, posing challenges for the business.

123
Q

Social Responsibility

A

Operating with a focus on making a positive impact beyond financial gains, addressing societal needs and supporting communities.

124
Q

Social Welfare Initiatives

A

Programs and services supported by businesses’ tax contributions, such as education and healthcare, benefiting the broader society.

125
Q

Stakeholders

A

Individuals or groups with a vested interest in the success and operations of an organization.

126
Q

Strategic Decisions

A

Choices made by businesses to achieve long-term objectives, often involving the consideration of opportunity costs.

127
Q

Surplus Generation

A

Raising funds and accepting donations to generate surpluses reinvested in social, environmental, or cultural initiatives.

128
Q

Survival

A

A fundamental objective for new or struggling businesses, focusing on maintaining operations and overcoming challenges.

129
Q

Sustainable Growth

A

Achieving growth in a way that balances economic, social, and environmental considerations for long-term viability.

130
Q

Tax Obligations

A

The responsibility of businesses to pay taxes, providing revenue for the government to fund public goods and services.

131
Q

Technology

A

The application of scientific knowledge and advancements to create tools, systems, and processes that improve business operations.

132
Q

Trade

A

The exchange of goods and services between countries or regions, a significant driver of global economic interdependence.

133
Q

Trade-offs

A

The sacrifices or compromises made when choosing one option over another, considering opportunity costs.

134
Q

Traditional Banks

A

Conventional banking institutions that provide financial services such as loans, deposits, and investments.

135
Q

Training

A

The process of developing employee skills and knowledge through learning programs and educational opportunities.

136
Q

Transparency

A

Openness and clarity in financial reporting, making information easily accessible and understandable for investors and stakeholders.

137
Q

Transportation

A

The movement of goods, people, or information from one place to another, facilitating global trade and connectivity.

138
Q

Trust

A

The confidence and reliance on the integrity and reliability of parties involved in business negotiations, strengthened through confidentiality.

139
Q

Unions

A

Organizations formed by workers to collectively address and negotiate workplace issues, representing employee interests.

140
Q

Value for Money

A

Providing quality services while optimizing the use of public funds, emphasizing efficiency and cost-effectiveness.

141
Q

Willingness to Pay

A

The amount of money consumers are willing to spend on goods and services, influencing pricing strategies.

142
Q

Workforce Motivation

A

Strategies and practices aimed at inspiring and energizing employees to perform their best and achieve organizational goals.

143
Q

Working Practices

A

The methods and procedures followed by employees in carrying out their tasks and responsibilities within the organization.

T-Level Finance (1 decks)

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