Business definition

Question 1

Market research

Answer 1

the process of gathering and analyzing information from customers and competitors using secondary and primary data

Question 2

business activity

Answer 2

the process of producing goods and services to satisfy consumer’d demand

Question 3

Economic problem

Answer 3

unlimited wants cannot be met as there are limited numbers of factors of production

Question 4

Pest analysis

Answer 4

business must be proactive and try to anticipate changes in the business
( political, economic, social, technology )

Question 5

Triple bottom line

Answer 5

A business concept that assumes the business cares about social and environmental impact and not just about generating profit, broken down into 3 Ps (Profit, Planet, People)

Question 6

Liquidation

Answer 6

When a firm ceases trading and its assets are sold for cash to pay suppliers and other trade payables

Question 7

Unique selling point

Answer 7

special features of a product that differentiates it from a competitors product

Question 8

Income statement

Answer 8

an income statement records the revenue, cost and profit or loss of a business over a given period of time

Question 9

JIT just in time

Answer 9

inventory control method, aims to avoid holding inventories by requiring supply to arrive just as they are needed in production and completed products are produced to order

Question 10

buffer inventory

Answer 10

minimum amount of inventory that should be held to ensure that production could still take place should a delay in delivery occur or if there’s a rise is production rate

Question 11

Efficiency

Answer 11

producing product at minimal cost (number of output / number of worker)

Question 12

Effectiveness

Answer 12

the capability of management meeting the target / objective of a business in a specified time at a specified cost

Question 13

Human Resource Management

Answer 13

Strategic approach to effective management of the organizations worker so that the business objectives are achieved

Question 14

Contracts of employment

Answer 14

A legal documents that sets out the terms and conditions governing a worker’s job

Question 15

Strategy

Answer 15

Plan of action designed to achieve long term objectives

Question 16

Operations planning

Answer 16

preparing input resources to supply products to meet demands

Question 17

Operational flexibility

Answer 17

the ability for a business to vary both the level of production and the range of products following changes in customer demands

Question 18

Operations management

Answer 18

Concerned with the use of resources (FOPs) to provide output in the form of goods and services

Question 19

Vroom’s Expectancy theory

Answer 19

beliefs that employees are prepared to work hard if they feel like they will be rewarded
(Instrumentality, Expectancy, Valance)

Question 20

CSR corporate social responsibility

Answer 20

applies to those businesses that consider the interest of society by taking responsibility for the impact of their decision and activities on customer, employee and the environment.

Question 21

Mission statement

Answer 21

a statement of the business core aims phrased in a way to motivate employees and to stimulate interest by outside groups

Question 22

Mayo’s theory

Answer 22

the view that employees aren’t motivated by financial rewards but rather relational factors are more important

Question 23

Fringe benefit

Answer 23

Non-cash form of benefits

Question 24

Co-operatives

Answer 24

A business jointly owned and run by its member, could be its employees, customers or a group (ex local farmer, producer)

Question 25

Equality policy

Answer 25

Aimed at achieving a fair organizations where everyone is treated the same way and has the opportunity to fulfill their potential

Question 26

Diversity policy

Answer 26

Aimed at creating a mixed workforce and placing positive value on diversity in the workplace. (ex gender, religions, age, ethnicity)

Question 27

Joint Ventures

Answer 27

occurs when 2 or more business joins together to pursue a common goal, usually a separate division is created to do this

Question 28

Intellectual capital

Answer 28

Intangible capital such as human capital, structural capital and relational capital (well trained employees, advance data system and information systems, brands networks suppliers connections)

Question 29

productivity

Answer 29

Ratio of output to inputs during production

Question 30

Commission

Answer 30

payment made to salesperson for each sales made

Question 31

Statement of Financial Position

Answer 31

An accounting statement that records the business's assets, liabilities and owner's equity at one point in time

Question 32

Liquidity ratio

Answer 32

The ability for a firm to pay its short time debt

Question 33

Window dressing

Answer 33

Making a business appear better than it is using financial accounts

Question 34

Cashflow forecast

Answer 34

Cash flow forecast is an estimate / prediction of a firm’s future cash inflow and outflows

Question 35

Internal growth

Answer 35

Expansion of a business by means of opening new branches, shops or franchise using the business’s own capital

Question 36

McClelland's human motivation thory

Answer 36

Achievement - the need to meet given goals Authority - The need the have power or influence over actions of others Affiliation - The need to be liked by and to work in a supportive environment

Question 37

Process theorists

Answer 37

Describe and analyse how an employee's behavior affects motivation based on expectations, goals and perception of equity

Question 38

Content Theorist

Answer 38

Identify the specific needs that motivate employees and why these changes over time

Question 39

Price elasticity of demand

Answer 39

measures the responsiveness of demand following a change in price

Question 40

startup capital

Answer 40

Initial investment required to fund a new business and used to purchase machinery or premises

Question 41

Capital Expenditure

Answer 41

purchase of assets that are expected to last for more than one year such as a building and machinery

Question 42

Revenue Expenditure

Answer 42

spending on all costs and asset, other non-current assets

Question 43

Break even

Answer 43

The level of output at which total costs equal total revenue - neither making a profit nor a loss

Question 44

Workforce planning

Answer 44

Analysing and forecasting the numbers of worker and the skills of those workers that will be required by the organization to achieve its objectives

Question 45

overdraft

Answer 45

an agreement with the bank which allow the business to spend more money in its account up to an agreed limit

Question 46

Leasing

Answer 46

obtaining the use of equipment or vehicles and paying rental or leasing charge over a fixed period of time

Question 47

Hire Purchasing

Answer 47

An asset is sold to a company that agrees to pay fixed repayments over an agreed time period

Question 48

Bank loan

Answer 48

Provision of finance by a bank which the business will repay with interest over an agreed period of time

Question 49

Debentures

Answer 49

bonds issued by companies to raise debt finance, often with a fixed rate of interest

Question 50

Taylor economics man

Answer 50

the view that employees are motivated by money

Question 51

mcgregor

Answer 51

Theory X and theory Y Theory X - Negatives view of employees, dont want to work, leadership style should be autocratic Theory Y - Positive view of employees, democratic leadership

Question 52

Mass Marketing

Answer 52

Selling the same products to the whole market with no attempt to target groups within it

Question 53

Niche Marketing

Answer 53

Identifying and exploiting a small segment of a larger market by developing products to suit it

Question 54

Market segmentation

Answer 54

Identifying different segments within a market and targeting different products or services to them

Question 55

Venture capital

Answer 55

an external sources of finance that risks investing capital into startups or expanding small business that have a good profitable potential but do not find it easy to gain finance from other sources (sharktank)

Question 56

Equity finance

Answer 56

permanent finance provided by the owner of a limited company

Question 57

Grant

Answer 57

the government of many countries support businesses, in their country, by providing grants and other financial assistance to encourage new business start-ups, or to assist business growth and development

Question 58

Contribution

Answer 58

selling price per unit - variable price per unit = C

Question 59

Contribution

Answer 59

selling price per unit - variable price per unit = C

Question 60

Break even point

Answer 60

Fixed cost / contribution

Question 61

Gross profit

Answer 61

Revenue - costs of sales