a level Flashcards
Stakeholders
Those with an interest in the way that a business operates.
Statement of financial position
Reports the assets, liability and equity of a business on a specific date; formerly known as the balance sheet.
Styles of management
The methods used by those in leadership roles to achieve the most effective outcomes from the employees for whom they are responsible.
Supply chain
The network of organisations, people, activities, information and resources that take the product/service from supplier to customer.
Survival
The capacity of a business to stay in business. It is dependent on the business selling sufficient amounts of its goods/services to cover all its costs.
Sustainability
The process of operating without damaging the environment or depleting natural resources.
Tall organisational structure
An organisational structure with a narrow span of control and many levels of hierarchy (a long chain of command).
Target market
The particular group of customers to which a business aims to sell its product; a particular market segment.
Technical economies of scale
The benefits that large businesses gain from having the funds to invest in expensive machinery that brings cost savings.
Telesales
Attempting to sell a good/service by making the initial contact by telephone
Tertiary industry
A business that provides services to consumers or other businesses
Total costs
All the costs involved in producing goods/services. Total costs = fixed costs + variable costs
Total quality management (TQM)
A philosophy that involves everyone in the business in the quest for continual improvement in the attitudes, practices, structures and systems that combine to create a top-quality product.
Trade credit
The process of buying items from a supplier and paying for them later; for example, 30 days after invoice date.
Trade descriptions
Protecting customers from false or misleading descriptions about products or their prices.
Traffic congestion
The effects of overuse of transport networks, for example slower speeds, traffic queues and longer journey times
Training
Employees learn the skills and techniques needed to do the job or to prepare for a new role.
Unique selling point (USP)
The key benefit of a good/service; it differentiates the product from others and will be the focus of advertising and promotion.
Unit cost
The average cost of each unit. Unit cost = total cost ÷ quantity
Unlimited liability
When the owner(s) are responsible for all the debts of the business. Their personal funds would be used to settle the business’ debts if the business’ funds were insufficient.
Variable costs
The costs that change as the business’ output changes.
Wage
A method of paying employees for their work based on an hourly, weekly or piece of work basis, usually paid weekly or monthly.
Wants
Things that people would like to have; not limited to the things they need to survive.
Waste
The unwanted material left over from the production process; it may have little or no value and the business may have to pay for its disposal.
Wholesaler
A business or person that buys goods in large quantities from producers, stores them in warehouses and sells them on to retailers.
Word of mouth
Personal recommendations from satisfied customers to prospective customers.
Zero-hour contract
A contract of employment where the employer is not obliged to provide any minimum hours of work; the employee is not obliged to accept any work that is offered.
