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
Net realisable value
the price that can be obtained for second-hand stock after deducting the selling cost
Profit quality
this assess the likelihood of the source of the profit made by a business continuing in the future. High quality profit made by a business continuing in the future. High quality profit is usually that which is generated by a forms usual trading activities, whereas low quality profit comes from a one-off source
Line managers
staff with responsibility for achieving specific business objectives, and with the resources to get things done
Downsizing
rethinking staffing numbers and the organisational structure needed given that saes revenue has fallen; often used a euphemism for redundancies
PESTLE
key external factors that impact on business objectives and achievements: Political, Economic, Social, Technological, Legal, Environmental
Disruptive change
this kind of change happens suddenly, unpredictable and with a substantial impact that shakes up the whole market
Incremental change
this kind go change occurs in small, gentle steps, allowing a business to adapt gently
Contingency planning
thinking through a Plan B in case Plan A goes wrong
