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BUSINESS > DEFINITIONS > Flashcards

DEFINITIONS Flashcards

1
Q

adding value

A

the process of increasing worth of a product or service

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2
Q

adverse variance

A

a difference between actual and budgeted amounts.

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3
Q

autocratic leadership

A

leadership style of the manager makes all of the decisions

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4
Q

bank overdraft

A

borrowings from a bank on a current account which are payable on demand.

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5
Q

batch production

A

method of production whereby a number of identical products are produced.

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6
Q

boston matrix

A

a model which analyses the product portfolio of a business into 4 categories (stars, cash cows, problem children, and dogs)

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7
Q

branding

A

the use of a trade name, symbol, logo, or other device to differentiate a product or service.

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8
Q

break - even

A

the point at which the total sales of a business equal total costs - i.e. the business is making neither a profit nor a loss.

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9
Q

budget

A

a detailed plan of income and expenses expected over a certain period of time.

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10
Q

business cycle

A

the changes and fluctuations in economic activity that the economy undergoes over a period of time.

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11
Q

capacity utilisation

A

the proportion of total capacity that is used.

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12
Q

cash flow

A

the movements of cash into and out of a business

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13
Q

cash flow forecast

A

a weekly or monthly projection of the likely cash inflows and outflows in a business.

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14
Q

cell production

A

method of production whereby production is split up into self-contained units.

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15
Q

centralisation

A

organisational structure where all decision making is made at the top of the hierarchy.

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16
Q

competition

A

the businesses that compete for a share of the market.

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17
Q

competitiveness

A

the ability of a business to offer a better product than competitors.

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18
Q

contribution

A

the difference between total sales and variable costs.

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19
Q

demand

A

the amount of a product or service that a customer is willing to pay at a given time.

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20
Q

decentralisation

A

organisational structure where decision making is passed down the hierarchy.

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21
Q

democratic

A

managment leadership style whereby the manager involves employees in the decisions making process.

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22
Q

distribution channel

A

how a business gets its products to the end consumer.

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23
Q

dividend

A

a payment that is made by a company to its shareholders for the profits earned.

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24
Q

elasticity of demand

A

the responsiveness of demand to a change in price or income.

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25
Q

entrepreneur

A

a person who sets up a business and assumes all the risks and rewards.

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26
Q

exchange rates

A

the rate at which one currency can be converted into another currency.

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27
Q

favourable variance

A

a difference between actual and budgeted results which is good news e.g. higher than budgeted revenue.

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28
Q

franchise

A

form of business whereby one business allows another business to sell their products in return for a fee.

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29
Q

fixed costs

A

costs do not vary with the level of output.

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30
Q

flow production

A

method of production whereby there is a continuous movement of items through the production process in the warehouse or facility.

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31
Q

gross profit

A

revenue minus cost of sales in a business

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32
Q

income elasticity of demand

A

the responsiveness of demand to a change in income.

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33
Q

inflation

A

an increase in the general prices of goods and services over a period of time.

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34
Q

interest rates

A

the costs of borrowing money or the return of investing money.

35
Q

job production

A

method production whereby one of items are produced to specific requirements.

36
Q

just - in - time

A

a method of inventory control whereby inventory arrives just at the time it is needed.

37
Q

kaizen

A

the process of continuous improvement

38
Q

laissez - faire

A

a hands off approach to management

39
Q

lean production

A

a method of production that aims to reduce waste.

40
Q

legislation

A

the act of making and enacting laws.

41
Q

limited liability

A

shareholders are only liable for the money they have invested - not for the overall debts and liabilities of their company.

42
Q

liquidity

A

the ability of a business to pay its debts.

43
Q

market share

A

the share of the total market that is owned by a particular business, product, or brand.

44
Q

market segmentation

A

the process of diving a market into smaller sections which contain customers with similar needs and wants.

45
Q

margin of safety

A

the difference between the actual level of output and the break even output.

46
Q

market research

A

the process of planning, collecting, and analysing data relevant to help make marking decisions.

47
Q

marketing mix

A

the set of marketing tools that the firm uses to persue its marketing objectives.

48
Q

mass market

A

describes the largest group of customers with specific needs and wants in an industry.

49
Q

niche market

A

a focused segment of a larger market sector which is possible to target.

50
Q

operating profit

A

gross profit minus admin costs.

51
Q

organisational structure

A

the way that the roles and responsibilities within an organisation are structured.

52
Q

outsourcing

A

the delegation of business process to a third party.

53
Q

partnership

A

a business owned and controlled between 2 and 20 people.

54
Q

paternalistic

A

method of leadership whereby the leader decides what is best for the employees.

55
Q

penetration pricing

A

pricing strategy that involves the setting of lower rather than higher prices in order to achieve a large market share.

56
Q

price skimming

A

pricing strategy where a higher price is charged for a new product to take advantage of customers prepared to pay for innovation.

57
Q

price elasticity of demand

A

the responsiveness of demand to a change in the price of a product.

58
Q

primary research

A

the market research that involves the collection of data that does not yet exsist.

59
Q

private limited company

A

a business owned and controlled by shareholders who’s shares cannot be publicly traded.

60
Q

product differentiation.

A

making a product different from its competitors.

61
Q

product lifecycle

A

a theory which predicts the stages a product goes through from introduction to withdrawal from the market.

62
Q

product portfolio

A

the collection of products and brands owned and operated by a firm.

63
Q

productivity

A

measures of output per worker over a given time period.

64
Q

profitability

A

the ability of business to generate profit from its activities.

65
Q

public limited company

A

a business who’s shares can be traded and sold to the public.

66
Q

qualitative research

A

market research concerned with collecting data on attitudes, research opinions, beliefs, and intentions etc.

67
Q

quality

A

where a product meets customers requirements.

68
Q

quality assurance

A

organising every process to get the product right first time and prevent mistakes ever happening.

69
Q

quantitative research

A

market research concerned with collecting data that can be research quantified e.g. sales and statistics.

70
Q

sales forecasting

A

the process of estimating future sales.

71
Q

sample

A

in market research, a sample is a subset of a population.

72
Q

sole trader

A

a one person business with unlimited liability for the debts of that business.

73
Q

span

A

the number of employees who are directly supervised by a manager.

74
Q

spare capacity

A

when a business is able to produce more with existing resources.

75
Q

stock control

A

the processes and controls used by a business to ensure that is has sufficient stock for its purposes.

76
Q

supply

A

the amount of goods and services that are available to customers.

77
Q

total costs

A

the total of variable and fixed costs in a business.

78
Q

unit costs

A

the average production cost per unit.

79
Q

unlimited liability

A

describes the potential risk that sole traders face. there are liable for the debts of the business.

80
Q

variable costs

A

costs that vary directly in proportion to output.

81
Q

variance

A

the difference between the budgeted amount and what actually happens. a variance can be favourable or adverse.

82
Q

venture capital

A

investment made by specialist funds to finance the launch, early development or expansion of a private company.

83
Q

waste

A

a cost of production. sub-standard completed output or raw materials which are not retained in the production process.

84
Q

working capital

A

the amount of money that a business has available.

BUSINESS (8 decks)

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