Definitions

Question 1

Adding Value

Answer 1

Selling a product for more than it cost to buy

Question 2

Appraisal

Answer 2

A review of an employee’s performance

Question 3

Apprenticeship

Answer 3

Paying employees to train while working

Question 4

Asset

Answer 4

Something belonging to a business

Question 5

Asset lock

Answer 5

A way of ensuring that the assets of a social enterprise are used for the benefit of the cause or community

Question 6

Asset Stripping

Answer 6

Buying a company intent on selling off all the profitable parts of it

Question 7

Autocratic leadership

Answer 7

Managers are fully in charge of decisions and command employees

Question 8

Backward vertical integration

Answer 8

A business joining with another in an earlier sector of industry in the same market

Question 9

Board of Directors

Answer 9

A group that manages a company and makes the main decisions

Question 10

Boston matrix

Answer 10

A tool that analyses each part of a product portfolio in terms of market share and market growth

Question 11

Capital intensive

Answer 11

Production using mostly machines

Question 12

Cash Budget

Answer 12

A financial statement that looks ahead to the possible cash situation by subtracting future cash outflows from future cash inflows

Question 13

Centralised management

Answer 13

Most control of a business retained at the top

Question 14

Channel of distribution

Answer 14

The chain of businesses or intermediaries that products pass through until they reach the end customer

Question 15

Charity

Answer 15

A third sector organisation that raises money to benefit others

Question 16

CMA

Answer 16

Competition and Markets Authority is a Government department that enforces competition policy to ensure competition and fairness in markets

Question 17

Conglomerate integration

Answer 17

A business joins a business in a completely different market

Question 18

Co-operative

Answer 18

Democratically owned enterprise that aims to provide a service for its members

Question 19

Core Activities

Answer 19

The main tasks of the business, often what it is best at or what is most profitable

Question 20

Corporate culture

Answer 20

The ‘feel’ of business, what makes it unique to staff

Question 21

CSR

Answer 21

Corporate Social Responsibility is when companies take responsibility for their effect on the environment or society

Question 22

Decentralised management

Answer 22

Branch or department where managers have most control

Question 23

Deintegration

Answer 23

Selling off parts of the business that has been vertically integrated

Question 24

Delayering

Answer 24

Removing a level of management i.e. flattening the structure

Question 25

Delegation

Answer 25

Giving subordinates a chance to do higher-level tasks they wouldn’t normally do

Question 26

De-merger

Answer 26

A business splitting into two separate companies

Question 27

Democratic leadership

Answer 27

Managers give employees a say in decision-making while remaining in charge

Question 28

Divestment

Answer 28

Selling off an area of the business, e.g. a poorly performing branch

Question 29

Downsizing

Answer 29

Removing staff from the business

Question 30

Economic Cycle

Answer 30

The state of the economy and how, in general, well of customers are

Question 31

Economic policy

Answer 31

Tools used by the Government to help control the economy, i.e. jobs, public funds, inflation, etc

Question 32

Employee participation

Answer 32

Getting employees involved in decision-making e.g. works council