All key terms Flashcards
a plan that outlines the actions required to
achieve particular aims and objectives and provides a
way of monitoring progress
Action plan
a list of items that will be discussed at a
forthcoming meeting
Agenda
a yearly meeting of
shareholders that a limited company is usually legally
required to hold
Annual General Meeting (AGM)
the process of communicating in a
non-verbal way through conscious or unconscious
gestures, movements and mannerisms
Body language
a name, symbol, logo and/or image in
customers’ minds that clearly distinguish one
product from another
Brand
the degree to which consumers buy a particular brand of a product in preference to another
brand
Brand loyalty
the strategy of differentiating the products
of one enterprise from those of another through
emphasising an identifiable image
Branding
the break-even point is when the total
revenue of an enterprise exactly matches the total
costs and the enterprise is not making either a profit
or a loss
Break-even
a financial statement of income and expenditure
prior to a particular period of time
Budget
the difference between a budgeted or
anticipated figure and the actual figure
Budget variance
a financial institution that receives
deposits and provides loans and other forms of
financial support; it is usually owned by its members,
and so is a mutual organisation
Building society
a type of enterprise that usually has
profit as its main objective
Business enterprise
a means of bringing
together people to share, and learn from, their
experiences in business and enterprise
Business and enterprise network
an organisation that has been
established with the purpose of producing and selling
particular goods and services
Business organisation
human-made aids to production
Capital
the flow of money into (inflow) and the flow
of money out of (outflow) an enterprise
Cash flow
a forecast of expected income and
expenditure over a particular period of time
Cash flow forecast
a commercial institution, usually
owned by its shareholders, that receives deposits and
provides loans and other forms of financial support
Commercial bank
a person who provides expert advice in a particular area of enterprise activity
Consultant
the importance of changes in
consumer preferences in determining the allocation
of scarce resources in an economy
Consumer sovereignty
an amount of money held by an
enterprise in reserve in case it is faced by financial
difficulties brought about by unexpected and
unplanned circumstances beyond its control
Contingency fund
the difference between sales revenue and
variable costs
Contribution
a type of business organisation owned by
its customers or its employees
Co-operative
the legal ownership by a person or an
enterprise of certain kinds of material, e.g. musical or
artistic work
Copyright
the willingness of an
enterprise to accept responsibility for its actions
and how they may have an impact on a variety of
stakeholders
Corporate social responsibility
the introduction of something original and
imaginative rather than imitated
Creative
a sum of money that an enterprise allows
customers before requiring payment and/or a sum of
money that an enterprise allows a customer before
requiring payment
Credit
a financial institution that receives
deposits and provides loans and other forms of
financial support; it is usually owned by its members,
and so is a mutual organisation, but it tends to
be limited to particular areas of a country or to
particular groups of workers
Credit union
a person or organisation that is owed money
Creditor
the practice of funding an enterprise
project or venture by raising small amounts of money
from a large number of people, typically via the
internet
Crowdfunding
a person or organisation that buys goods and/
or services from an enterprise
Customer
a sum of money that is owed by a person or
organisation
Debt
a person or organisation that owes money
Debtor
the amount by which an enterprise’s or an
individual’s expenditure or spending exceeds the
income over a particular period of time
Deficit
where responsibility is passed down to
others in an enterprise
Delegation
the ways of gaining second-hand
information through such methods as analysing sales
figures from inside an enterprise or using government
research reports from outside the enterprise
Desk research
the costs of an enterprise that vary directly
with changes in the level of output
Direct costs
an investment strategy that aims to
reduce risk by combining a variety of different
investments that are unlikely all to suffer losses at
the same time
Diversification
a business organised and run by an
entrepreneur who makes decisions and takes risks
Enterprise
the showing of initiative, imagination,
energy and resourcefulness
Enterprising
a contribution to the finance needed by an
enterprise organised as a limited company. A share
certificate is issued to the shareholder
Equity
a way of doing something according to
a set of moral principles, values and beliefs
Ethical principle
a customer who has bought a
product from an enterprise at some point
Existing customer
all outgoings over a specific
period of time
Expenditure
the ways of gaining first-hand
information through such methods as a questionnaire
or an interview
Field research
the official channels of
communication used in an enterprise
Formal communication
a document that is written to
provide information, analyse an issue and make
recommendations
Formal report
an arrangement whereby one company gives
the right to another company to supply its products
Franchise
the company allowed by another company
to conduct business using the other company’s name
and brand
Franchisee
the company that allows another company
to conduct business using its name and brand
Franchisor
a financial institution that receives
deposits and provides loans and other forms of
financial support, often specialising in providing
savings accounts and life insurance plans; it is similar
to a building society, but usually on a smaller scale,
and is usually owned by its members, so it is a mutual
organisation
Friendly society
the trend towards worldwide markets in
goods and services
Globalisation
a bond is issued based on a promise
to repay a certain sum of money at a date sometime
in the future; a government bond is usually issued
by the central bank of a country on behalf of the
government – the government guarantees to repay
the money on the maturity of the bond, plus interest
Government bond
a payment that is usually given to support a
particular project or service
Grant
the sales revenue of an enterprise less the
cost of sales
Gross profit
the increase in size of an enterprise through
internal and/or external expansion
Growth
messages between people
on the same organisational level of the organisation
Horizontal communication
the knowledge, skills, qualifications,
training and experience of a workforce
Human capital
all incomings received from different sources
over a specific period of time
Income
a
statement which shows the net profit of an enterprise
after all of the expenses have been deducted
Income statement, or profit and loss account
a place where resources, space
and an appropriate environment are provided for
entrepreneurs to start up an enterprise
Incubation Centre
the costs of an enterprise that do not
vary directly with changes in level of output
Indirect costs
the unofficial channels of
communication used in an enterprise
Informal communication
the process of putting a new idea into
practice
Innovation
the return on money that has been lent
Interest
a global system of interconnected computer
networks that provides an extensive range of
information resources and services
Internet
a computer network that shares information
resources and services within a particular enterprise
Intranet
the process of purchasing capital assets
Investment
skilled, semi-skilled and unskilled workers who
can work for an enterprise
Labour
natural resources that can be used by an enterprise
Land
the distinctive way in which decisions
are taken in an enterprise
Leadership style
a contractual arrangement whereby an asset is
used for a specified period of time on payment of rent
Lease
the process or procedure to ensure
that an enterprise follows relevant laws, rules and
regulations
Legal compliance
the person or organisation that rents an asset
from a lessor
Lessee
the person or organisation that rents out an asset
to a lessee
Lessor
a company that is legally independent
from its shareholders, who as a result have limited
liability
Limited company
