Business Vocab 6 Flashcards
Paternalistic management
Manager is in a better position than the workers and knows whta is best for the business
Penetration pricing
Setting a relatively low price to achieve a higher volume of sales
PEST analysis
Strategic Analysis of a firms macro environment, including political, economic, social, technological factors
Piece rate
Payment for a worker for each unit produced
Porters five forces model
Analysing competitive forces within an industry
Price discrimination
Charging different groups of consumers different prices for the same group or services
Price/ earning ratio
Number of years it would take at the current earnings per share to purchase one share at the current market price
Price elasticity of demand
Responsiveness of demand for a product following a change in its price
Primary research
First hand data
Private limited company
Owned by shareholders might be families cannot share shares to general public
Privatisation
Selling state owned and controlled business organisations to investors in the private sector
Product portfolio analysis
Range of existing products of as business to help allocate resources effectively between them
Productivity
Ratio of outputs to inputs during production
Profit sharing
A bonus for employees based on the profits of the business usually paid as a proportion of basic sallary
Profitability
A relative measure of businesss ability to make a profit from sales or a capital investment
