AS Lvls Flashcards
Opportunity cost
Benefits lost when making a choice between options because the option chosen is better/ more suitable
Product life cycle
Stages a product goes through from initial design to removal from the market.
Induction training
Training given to new employees – business systems and business layout.
Productivity levels
Ratio of outputs to inputs during production
Cash flow forecasting
Estimation of future cash inflows and outflows
Shareholder
People or institutions that own shares in a limited company.
Supply Chain Management
Management of the flow of goods and services – includes all processes that
transform raw materials into final products.
Time-Based Payment
Payment to a worker made for each period of time worked example per hour.
Cost Based Pricing
Pricing method that is based on the cost of production, manufacturing, and distribution of a product.
Fixed Cost
Fixed costs do not change when a business alters its level of output of goods or services
Inventory
Materials & goods held by a business which are required to allow production of their products and supply to consumers.
Social Enterprise
A business with mainly social objectives that reinvests most of its profits into benefitting society rather than maximising
returns to owners.
Commission
A payment to an employee according to the amount/value of sales achieved
Human Needs
Basic requirement that an individual wishes to satisfy at work
Dismissal
When a worker is dismissed/fired from their job due to lack of discipline and breach of incompetence.
Mass Marketing
Targeting the majority of the market
Labour Productivity
Output per labour hour
Bank Overdraft
Credit that a bank agrees can be borrowed by a business up to an agreed limit as and when required.
Job production
A production method that businesses use that produces goods that are specific to customer requirements.
Marginal Cost
The extra cost of producing one more unit of output
Empowerment
The giving of skills, resources, authority and opportunity to employees so that they can take decisions and be accountable for their work.
Customer (market) orientation
Producing what the customer / market wants & putting the customer first.
Market Segmentation
Subgroup of a whole market in which consumers have similar characteristics.
Partnership
When two people own and manage the business together and have to share their profits with each other.
Performance-related pay
When businesses pay their workers or employees based on their performance, it is usually a bonus or addition to basic salary.
Capital intensive production
High quantity of capital equipment in the production process rather than labour.
(outputs to inputs using automated machinery).
Sources of finance
Various means by which businesses can obtain the necessary funds to finance their operations, investments, and growth
Price elasticity of demand
the percentage change in the quantity demanded of a good or service divided by the percentage change in the price.