Definitions 3.3 Flashcards
Corporate culture
culture of an organisation is the code that affects the attitudes, decision making and management style of its staff
Corporate Social Responsibility (CSR)
a term intended to sum up the ethical y driven activities of a business; but often its an extension of the public relations (PR) department, maki g sounds that signify nothing
Vested interest
when there’s a personal, often hidden, reason for making decision
Whistleblowing
when an employee decides they can’t accept a moral dilemma (such as knowing bribery), and exposes the unacceptable practice - perhaps first to senior management and then - if nothings done - to the media
Corporate tax
a tax levied as a percentage of a company’s profits
Cost of sales
all the costs arising from sales to customers, including raw materials, supplies and packaging
Dividends
regular payments to shareholders as a reward for their investment
Gross profit
revenue less cost of goods sold; profit made on long trading activities
Liability
a debt (bill not paid or loan not paid)
Operating profit
Gross Profit - expenses
Prudent
an accounting term meaning cautious
Reserves
a company’s accumulated, retained profit; it forms part of the company’s total equity
Revenue
value of sales made; also known as turnover
Bad debts
money owed to the business that will never b repaid; perhaps a customer has gone into liquidation
Inter-firm comparisons
comparisons of financial performance between forms; to be valuable, these comparisons should be with a form of a similar size within the same market
