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Business studies GCSE > Business definitions > Flashcards

Business definitions Flashcards

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1
Q

Advertising

A

any message that a firm pays for, which promotes the firm or its products

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2
Q

Aim

A

an overall goal that a business is trying to achieve

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3
Q

Apprenticeship

A

a method of training where someone works and learns about their trade at the same time, and is awarded a qualification once they have gained a certain level of skill

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4
Q

ARR

A

the average rate of return on an investment

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5
Q

Asset

A

a valuable item owned by a business, or money owed to the business

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6
Q

Authority

A

power that people in an organisational structure have over the people in the layers below

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7
Q

Automation

A

when a machine works by itself, with little or no human involvement

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8
Q

Autonomy

A

where a worker is given the freedom to make their own decisions in a job

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9
Q

Average unit cost

A

how much each product costs to make (calculated by dividing total costs by output)

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10
Q

Award scheme

A

a method of motivation where employees are given recognition for hard work

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11
Q

Bar gate stock graph

A

a graph that is used to manage a business’s stock levels

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12
Q

Batch production

A

a method of production in which a firm makes one batch of identical items at one time

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13
Q

Bonus

A

a lump sum added to an employee’s pay, usually once a year

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14
Q

Boston Matrix

A

a method used to analyse a business’s product portfolio. Products are plotted according to their market share and how fast the market they are in is growing

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15
Q

Brand image

A

the impression that customers have of a company or the products it sells

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16
Q

Break-even level of output

A

the level of output at which a company’s total revenue equals its total costs

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17
Q

Business plan

A

an outline of what a business will don and how it aims to do it

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18
Q

Capital

A

a company’s wealth in the form of money or other assets

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19
Q

Capital employed

A

the total amount of money into and out of the business

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20
Q

Cash

A

the money a business can spend immediately

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21
Q

Cash flow

A

the flow of money into and out of a business

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22
Q

Cash inflow

A

money that flows into a business

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23
Q

Cash outflow

A

money that flows out of a business

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24
Q

Census

A

an official survey of a country’s population

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25
Q

Centralised organisation

A

an organisation with a structure in which all major decisions are made by one person or a few senior managers at the top of the organisational structure

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26
Q

Chain of command

A

the chain connecting directors to operatives in an organisational structure

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27
Q

Channel of distribution

A

the way that products get from manufacturer to a consumer

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28
Q

Commission

A

money paid to sales staff for every item they sell on top of their basic salary

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29
Q

Competitive pricing

A

a pricing strategy in which a firm charges similar prices to other firms

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30
Q

Competitor

A

a business which sells the same products in the same market as another business

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31
Q

Consumer

A

the person who uses a good or service

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32
Q

Contract of employment

A

a legal agreement between an employee and their employer about a job

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33
Q

Cost

A

an expense paid out to run a business

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34
Q

Cost-plus pricing

A

a pricing strategy in which the cost of making the product is increased by a certain percentage to work out the price the product will be sold for

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35
Q

Credit

A

an agreement that a customer will pay for something at a later date

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36
Q

Credit terms

A

the terms of a credit agreement that tell a customer how long they have to pay

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37
Q

Crowd funding

A

when a large number of people each contribute money towards funding a new business or a business idea

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38
Q

current asset

A

an asset that doesn’t last very long

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39
Q

current liability

A

a debt that a business has to pay off soon

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40
Q

customer service

A

any interaction a business has with its customers

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41
Q

CV

A

a summary of a person’s personal details, skills, qualifications and interests

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42
Q

decentralised organisation

A

an organisation with a structure in which the authority to make decisions is shared between people at different layers of the organisational structure

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43
Q

delayering

A

removing layers of management from an organisation

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44
Q

delegation

A

passing tasks or responsibilities onto another person

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45
Q

demand

A

how much of a product or service people will be willing to buy at a given price

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46
Q

depreciation

A

the amount of value that assets have lost over time due to wear and tear

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47
Q

design mix

A

the different elements of design needed to make a product successful including its function, cost and appearance

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48
Q

differentiation

A

making products or services distinctive in the market

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49
Q

dis-economy of sales

A

when growth leads to an increase in average unit cost

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50
Q

diversification

A

when two unrelated firms join together allowing them to move into new markets

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51
Q

dividend

A

a payment that a shareholders get if the company makes a profit

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52
Q

e-commerce

A

buying and selling products on the internet

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53
Q

e-tailor

A

a company that sells products online

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54
Q

economy of scales

A

a reduction in average unit cost that comes from producing on a large scale

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55
Q

enterprise

A

the process of identifying new business opportunities and then taking advantage of them

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56
Q

entreprenur

A

someone who takes on the risks of enterprise activity

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57
Q

exchange rate

A

a value that tells you how much one unit of a currency costs in a different country

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58
Q

extension strategy

A

an action intended to extend the life of a product

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59
Q

external expansion

A

when a company grows by merging with or taking over another firm (inorganic growth)

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60
Q

external recrutment

A

where a business recruits new people from outside the company

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61
Q

factor of prodution

A

a limited resource used to provide a good or service

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62
Q

fixed asset

A

an asset that a business keeps long-term or uses repeatably

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63
Q

fixed cost

A

a cost that doesn’t vary with output

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64
Q

flat organisation structure

A

an organisational structure with very few layers

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65
Q

flexible working

A

when working hours and patterns are adapted to suit the employee

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66
Q

flow producion

A

a method of production in which all products are identical and are made as quickly as possible

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67
Q

formal training

A

a method of training which has a set plan with learning objectives and a schedule

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68
Q

franchise

A

where a company lets another firm sell its products or use its trademarks in return for a free or a percentage of the products

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69
Q

freelance contract

A

when a self-employed person is recruited by a company on a temporary basis usually to work on a specific project

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70
Q

fringe benefit

A

any reward for an employee that is not part of their regular income

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71
Q

full-time staff

A

employees that generally work 35-40 hours a week

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72
Q

gap in the market

A

a customer need that isn’t being met

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73
Q

globalisation

A

the process by which businesses and countries around the world become more interconnected

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74
Q

government grant

A

a sum of money which is given by the government and does not have to be repaid

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75
Q

gross profit

A

the profit left over once the cost of sales has been taken away from the total revenue

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76
Q

gross profit margin

A

the fraction of every pound spent by customers that doesn’t go towards making the product

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77
Q

hierarchical structure

A

an organisational structure with lots of layers

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78
Q

hire purchase

A

when a firm purchases something by first paying a deposit and then paying the rest in instalments over a period of time while they have use of the product

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79
Q

human resources

A

the people needed to run a business or the department that organise people in a firm

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80
Q

income statement

A

a financial statement that shows how the income of a business has changed over a period of time

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81
Q

incoporated

A

a business that has its own legal identity

82
Q

induction training

A

a training program that introduces new employees to a workplace

83
Q

inflation

A

an increase in the price of goods and services

84
Q

informal training

A

a method of training which has no strict plan and is usually given by other workers

85
Q

insolvency

A

when a firm is unable to pay its debts

86
Q

interest rate

A

a value which shows the cost of borrowing money or the reward given for saving money

87
Q

internal expansion

A

when a company grows by expanding its own activities

88
Q

internal recruitment

A

where existing employees are recruited into new roles within a business

89
Q

investment

A

money which is put into a business to make improvements in order to make the business more profitable

90
Q

job analysis

A

a process in which every little detail of a job is thought thought about

91
Q

job description

A

a written description of what a job involves

92
Q

job enrichment

A

where a worker is given greater responsibility in their job

93
Q

job production

A

a method of production in which each product has a unique design based on the customer specification

94
Q

job rotation

A

where a worker is occasionally moved from one job to another

95
Q

job share

A

where the work and pay of one full-time job is shared between two people

96
Q

just-in-case

A

a method used in stock management in which buffer stock of items are kept at every stage of the production process

97
Q

just-in-time

A

a method used in production or stock management in which stock levels are kept at a bare minimum - products are made just in time for delivery

98
Q

lean production

A

a production strategy that aims to use as few resources as possible and to have as little waste as possible

99
Q

limited liability

A

where the owners of a business are not legally responsible for all the debts a business has

100
Q

liquidity

A

how easily an asset can be converted into money

101
Q

loan

A

a long term source of money that must be paid back to the lender

102
Q

logistics

A

getting goods or services from one part of the supply chain to another

103
Q

long-term liability

A

a debt that a business has to pay off over a long period of time

104
Q

loss

A

where the total costs for a company over a period of time are greater than its revenue

105
Q

loss leader pricing

A

a pricing strategy in which the price of a product is set below cost

106
Q

m-commerce

A

when goods and services are bought on the internet using a wireless mobile device such as a smartphone or tablet

107
Q

margin of safety

A

the gap between current level of output and the break even level of output

108
Q

market

A

a place where goods are traded between customers and suppliers, trade in a particular type of product or the potential customers of the product

109
Q

market map

A

a diagram showing some of the features of the market

110
Q

market research

A

when a business investigates different aspects of a market e.g. demand for a product, the competition and the target market

111
Q

market share

A

the proportion of total sales within a market that is controlled by a business

112
Q

market size

A

the number of individuals within a market that are potential buyers and sellers of products, or the total value of products in the market

113
Q

marketing mix

A

the four elements that must be considered for good marketing:product, price, place and promotion

114
Q

mass market

A

a large group of potential customers for a product

115
Q

merger

A

when two companies join together to form a new lager firm

116
Q

mortgage

A

a loan used to finance buying a property

117
Q

multinational

A

a single business that operates in more than one country

118
Q

net profit

A

the profit left over when all costs are taken into account

119
Q

net profit margin

A

the fraction of every pound spent by customers that the company gets to keep

120
Q

niche market

A

a small and specialised group of potential customers for a product

121
Q

objective

A

a measurable step that a business will set in order to work towards an aim

122
Q

obsolete

A

when a product is no longer used,usually because it has become out-dated and has been replaced by something else

123
Q

off-the-job training

A

a method of training in which an employee learns away from their workplace

124
Q

on-the-job training

A

a method of training in which an employee is shown how to do their job by another employee and then given the opportunity to practice

125
Q

operating profit

A

the money left over after paying all the costs of running the business

126
Q

opportunity cost

A

the value of something that’s given up in order to do something else

127
Q

organic growth

A

when a company grows by expanding its own activities (also called internal expansion)

128
Q

outsourcing

A

when a business pays another firm to carry out tasks it could do itself

129
Q

overdraft

A

when more money is taken out of a bank than has been paid into it

130
Q

part-time staff

A

employees that generally work 10-30 hours per week

131
Q

partnership

A

a business ownership structure in which a small number of people own an unincorporated company

132
Q

performance review

A

a system for assessing an employees progress and helping them to develop

133
Q

permanent contract

A

a contract of employment that has no end-date

134
Q

person specification

A

a list of the qualifications, experience, skills and attitudes a person needs for a particular job

135
Q

pressure group

A

an organisation that tries to influence what people think about a certain subject

136
Q

price penetration

A

a pricing strategy in which a firm charges a very low price for a product when it is new

137
Q

price skimming

A

a pricing strategy in which a firm charges a high price for a product to begin with

138
Q

primary research

A

market research that involves getting information from customers or potential customers

139
Q

private limited company

A

a business ownership structure that is incorporated and has shares, but the shares can only be sold with the agreement of all the shareholders

140
Q

procurement

A

the act of finding and buying things that a business needs from outside the business

141
Q

product life cycle

A

the different stages that a product goes through over time

142
Q

product portfolio

A

the rage of different products that a business sells

143
Q

productivity

A

how many products are made in a certain amount of time or for a certain amount of money

144
Q

profit

A

the difference between revenue and cost over a period of time

145
Q

promotion

A

when an employee is given a higher status or position within a firm

146
Q

promotional mix

A

the combination of different promotional methods a firm uses to promote a product

147
Q

promotional pricing

A

when products are put on offer so that their average unit price is reduced for a limited period of time

148
Q

public limited company

A

a business ownership structure that is incorporated and has shares that can be bought and sold by anyone

149
Q

public relations

A

business activities which involve communicating with the media in an attempt to promote a firm or its products tot he public

150
Q

purchasing economy of scales

A

a reduction in average unit cost that comes from a firm being offered a lower unit cost from suppliers when it buys its supplies in bulk

151
Q

qualitative information

A

information that involves people’s feelings or opinions

152
Q

quality assurance

A

a way of maintaining quality by checking that quality standards are being met throughout each process involved in making the product

153
Q

quality control

A

a way of maintaining quality by checking products for faults at certain stages during the production process

154
Q

quantitative information

A

information that can be measured or reduced to numbers

155
Q

remote working

A

when an employee works in a location away from their employer’s office

156
Q

remuneration

A

payment to an employee for the work that they have done for an employer

157
Q

retailer

A

a business that sells products to consumers

158
Q

retained profit

A

profit that is put back into the business

159
Q

revenue

A

the income earned by a business in a given time period

160
Q

salary

A

a fixed payment that is made to employees every month

161
Q

sales process

A

a series of steps for finding and selling to customers, as well as providing customer service

162
Q

sales promotion

A

a short-term method used to boost a firm’s sales e.g. 2 for 1

163
Q

secondary research

A

market research that involves looking at data from outside the business

164
Q

segmentation

A

when people within a market are divided into different groups

165
Q

self-employed

A

when someone owns their own business and takes their income from the profits of the firm

166
Q

self-learning

A

where and employee seeks out their own training and development

167
Q

share

A

a unit of ownership in a company. owners of shares can share in the profits of the company

168
Q

share capital

A

money gained through issuing shares in the company

169
Q

sole trader

A

a business ownership structure where one person owns an unincorporated company

170
Q

span of control

A

the number of workers who report to one manager in a heirachy

171
Q

sponsorship

A

a method of promotion in which a business gives money to an organisation or event. in return the organisation or event displays the business’s name

172
Q

staff retention

A

when a business keeps all of its staff

173
Q

stakeholder

A

any individual or group of people that is affected by a business

174
Q

start-up capital

A

the money or assets needed to set up a business

175
Q

statement of financial position

A

a financial statement that records a business’s assets and liabilities at a particular moment in time

176
Q

stock market

A

a market where shares of public limited companies can be bought and sold

177
Q

subordinate

A

someone below another person in an organisational structure

178
Q

supply chain

A

the group of firms that re involved in all various processes required to make a finished product or service available tot he customer

179
Q

sustainability

A

working in way that doesn’t damage the Earth for future generations

180
Q

takeover

A

when an existing business expands by buying more than half the shares in another firm

181
Q

tall organisational structure

A

a organisational hierarchy with lots of layers

182
Q

tariff

A

a tax on goods that are being imported or exported

183
Q

technical economies of scale

A

a reduction in average unit cost that comes from a firm being able to afford more advanced machinery or use larger premises than a smaller firm

184
Q

telesales

A

selling products to consumers via phone

185
Q

temporary contract

A

a contract of employment that is only for a fixed period of time

186
Q

total cost

A

the fixed and variable costs for a business added together

187
Q

total quality management

A

a strategy that aims to make quality the responsibility of every employee in an organisation

188
Q

trade bloc

A

a group of countries that has few or no trade barriers between them

189
Q

trade credit

A

when a business gives firms time to pay for certain purchases

190
Q

unincoporated

A

a business that doesn’t have its own legal identity

191
Q

unique selling point

A

this is some feature that makes a product different from its competitors

192
Q

unlimited liability

A

where the owners of a business are legally responsible for all debts a business has

193
Q

variable cost

A

a cost that increases as a firm expands out

194
Q

venture capital

A

money raised through selling shares to individuals or businesses who specialise in giving finance to new or expanding small firms

195
Q

viral advertising

A

when adverts are shared and viewed many times ina short time period, often via social media

196
Q

vocational qualification

A

a qualification that is specific to a certain job

197
Q

wage

A

payment that is usually made to employees weekly or monthly

198
Q

wholesaler

A

a business that buys products in bulk and stores them in a warehouse

199
Q

working capital

A

the money available for the day-to-day operating of the business

200
Q

zero hour contract

A

a contract of employment which means the employer doesn’t have to offer the employee any work at all and the employee doesn’t have to accept any work that is offered to them

Business studies GCSE (2 decks)

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