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.
Internal sources of finance
Raising finance from the business’s own assets or from profits left in the business(retained earnings)
Published accounts
The accounts of a company are published to give greater publicity to the company and to enable the members, investors and public to understand the profitability and financial positions of the concern.
Flexibility of operations
When businesses are flexible and can adapt to changing conditions of the market well.
Marketing objectives
Sets out what a business seeks to achieve through its marketing activities.
Corporate objectives
Specific business wide objectives that can
be broken down into departmental targets/objectives.
Retained earnings
Profit after tax retained in a company rather than paid out to shareholders as dividends.
Short term finance
Money needed for short term until 1 year.
Example of short term finance:
- Bank overdraft
- Debt factoring
Long term finance:
- Long term loans
- Debentures
Scale of operations
Maximum of output businesses can produce given its current amount of input available.
Laissez faire
Means ‘let them do it’. A management style that leaves much of the business decision-making to the workforce.
Demand
Amount of a product that consumers are willing to buy.
Market research
Process of collecting, recording and analysing data about customers, competitors and the market
Employee morale
the attitude, satisfaction, and overall outlook of employees at the workplace.
Autocratic leadership
Leadership style when one manager takes all decisions with very little, if any inputs from others
Piece rate
Payments made to employees based off how many units produced by each individual.
Time based payment
Payments made to employees based on the number of hours worked
Stakeholders
People or group of people that are interested/affected by the activities of the business.
Example: Shareholders, managers, employees, customers, suppliers.
Sustainability
Public sector
Organisations owned & managed by the government
Mission statement
Visionary aim for a business of the direction. It helps set objectives
Business objectives
Specific targets that should have a time period to achieve it.
Labour turnover
The measure of rate at which employees leave the company
Economy of scale
Cost advantages a business gains from increasing output.
Motivation
The internal and external factors that keep businesses continually interested and wanting to do well in their jobs.
HRM
The strategic approach to effective management of employees so they help the business gain competitive advantage.
Bonus payment
Extra payment made in addition to contracted wage or salary if workers increase output, productivity or sales.
Job rotation
A scheme that allows workers to switch from one job to another.
Market share
Percent of total sales in an industry generated by a company.
Job description
A detailed list of key points about the job to be filled, stating all its key tasks and responsibilities.
Internal growth
Internal growth comes from an increase in sales from re-investment in the
business and not mergers & takeovers.
Capital intensive
When businesses use more capital such as machinery that operates 24 hours a day in the production process rather than labor.
Promotion methods
Various strategies and tactics that businesses use to raise awareness of their products/service to persuade customers to buy them.
Internal g
Democratic leadership
A leadership style that encourages the active participation of workers in decision making process.
Liquidity
The ability for businesses to pay their short term liabiliites.
Efficiency
The least amount of inputs to make the maximum output to reduce waste
Annual cost formula
Variable cost + output per year
Batch production
Production of a limited number of identical products - each item in the batch passes through 1 stage of production before passing to the next stage.
Brand
A brand is the name or logo that
differentiates a product or service
from the competitors, like McDonalds and KFC.
Joint venture
Two or more businesses agree to work closely together on a particular project and create seperate business division to do so.
Cost-based pricing
