Glossary Flashcards
Accounting software
used to create final accounts such as income statements.
Air freight
a method of distributing goods using aeroplanes.
Application form
a document which an organisation creates for applicants to fill out.
Bank loan
when a business borrows money from the bank and will repay it over a specified period of time in regular instalments with interest.
Bank overdraft
when a business takes out more money than it has in its bank account.
Batch production
when products are made in small groups.
Benchmarking
the best performer in the industry is identified and their methods are copied to try and raise the quality of products.
Board of directors
a group of individuals appointed by the shareholders of a private limited company to oversee the running of it.
Bonus
employees are given an extra payment as a reward.
Boycott
employees refuse to carry out new duties or use new pieces of equipment.
Branding
a name, symbol, logo, slogan or unique design that a business can use to give their products a strong identity and make them easily recognisable by consumers.
Break even
the point at which no profit or loss is made.
Business plan
a written document prepared by an entrepreneur which details all key aspects of their proposed business.
Capital
money, tools and equipment invested into a business.
Capital intensive
when machinery and robots do most of the work in the manufacturing of a product.
Carbon footprint
the amount of carbon dioxide pollution released into the atmosphere by the activities of an individual or organisation.
Cash budget
a plan of how a business expects to spend and receive money.
Celebrity endorsement
the use of a famous person to promote a product.
Charity
a third sector organisation which has been set up to help a particular cause.
Closing balance
the money available at the end of the month which will become the opening balance for the following month.
Commision
employees are paid a percentage of a product’s sale value.
Competetive factors
activities carried out by businesses which provide similar goods or services to one another.
Competitive price
setting the price of a product the same as that of competitors.
Computer aided design (CAD)
software which allows for digital models of products to be designed and created.
Computer aided manufacture (CAM)
the use of computer controlled machinery and robots in the production of a product.
Condensed hours
employees work their contracted hours but over fewer days.
Contract of employment
a new employee will sign this to agree to the terms and conditions of a job.
Corporate social responsibility
(CSR) an objective where the business aims to have a positive impact on the environment, its staff and the local community.
Cost of sales
the cost of producing goods or providing a service.
Current technology
the technology that a business is currently using.
Customer care policy
a written policy which outlines a business’ standards for customer service and guidance for staff regarding how to offer good customer service.
Customer complaints procedure
a written document outlining the steps employees should take in handling a complaint to ensure they are dealt with consistently.
Customer service
the way in which a business treats and looks after its customers before, during and after a purchase.
CV
a document which an applicant creates that gives information about themself, e.g. education, work history, and hobbies and interests.
Database
software used as an electronic filing system.
Decline (product life cycle)
sales of a product fall quickly and it will be removed from the market before it becomes unprofitable.
Deficit
more money going out of a business than coming in.
Desk research
a type of market research which involves using pre-existing data that has been gathered by someone else.
Dividends
the process by which profits are divided amongst the shareholders of a private limited company.
Durable goods
items that can be used more than once.
E commerce
selling products and services via the internet
Economic factors
anything which affects how much people are spending.
Electronic payment systems
used to receive payments from customers.
Electronic point of sales
an electronic till system which records inventory going in and out of a company’s warehouse in real time.
E mail
electronic mail which can be used to send and receive messages and can include attachments.
Enterprise
the idea behind a business.
Entrepreneur
the person who comes up with the idea for a business and combines the factors of production together in order to start it up.
Environemental factors
weather conditions, including natural disasters, and the extent to which a business is environmentally friendly.
Environmentally friendly
acting in ways which are beneficial to the natural world such as recycling and using renewable energy.
Equality act 2010
ensures that employees and customers are not discriminated in the workplace.
Ethical operations
businesses aiming to act in ways which are fair, honest and right.
Expenses
items that a business must pay for to keep running, e.g. wages, electricity, insurance.
External factors
anything outwith an organisation which can affect it, either positively or negatively.
Factors of production
the resources needed in order to start up a business, namely capital, enterprise, land and labour (CELL).
Field research
a type of market research which involves a business gathering brand new information themselves.
Finance
the financial resources available to a business.
Fixed costs
costs which stay the same no matter how many units are produced.
Flexi time
employees can choose their start and finishing times but must work ‘core time’.
Flow production
when a large amount of identical products are made using an assembly line where a different component is added at each stage.
Free sample
a taster of a product that is given to customers to try for free.
Goods
items that can be seen, touched and picked up.
Go slow
employees complete tasks as slowly as possible.
Governement grant
money that is given to a business by the government which does not have to be repaid.
Gross profit
the profit made from buying and selling goods (sales revenue−cost of sales)
Growth (product life cycle)
sales of a product grow rapidly - most products become profitable by the end of this stage.
Health and safety at work act 1974
ensures that employers and employees have responsibilities for health and safety in the workplace.
Hire purchase
paying for an item in regular instalments. A deposit is usually required as well. This is usually paid back in monthly instalments and over a specified period of time.
Homeworking
employees work from home either all the time or for part of the working week.
Human resource
all of the employees in a workplace.
Income statement
shows the profit/loss made during a financial year.
Induction training
training given to employees when they first start a new job.
Internal factors
anything within an organisation which can affect it, either positively or negatively.
Interview
a meeting between an organisation and an applicant.
Introdcution (product life cycle)
a product is first launched onto the market and requires heavy advertising.
Job advert
a document which lets applicants know that a job exists.
Job description
gives information about a job, e.g. tasks and duties, pay, working hours and contract type.
Job production
when a bespoke, one-off product is made by hand by highly-skilled workers.
Job share
two employees share a full-time job.
Labour
employees of a business.
Land
the natural resources a business will use.
Leasing
when a business ‘rents’ an item.
Limited liability
the state of not being legally responsible for paying the debts of a business.
Living wage
paying staff more than the legal minimum per hour.
Loan from family/friends
when a business borrows money from a family member or friend, usually with no interest.
Low price
setting the price of a product lower than that of competitors.
Loyalty scheme
when customers collect points or stamps by buying from a business, which can be redeemed for free products or money off future purchases.
Market leader
the business in the market with the highest number of customers.
Market research
the process of gathering, recording and analysing data about customers, competitors and market trends.
Market segmentation
the process of dividing consumers into groups based on specific characteristics such as age or gender.
Market share
the number of customers in the market who buy from a business, usually represented with percentages.
Maturity (Product life cycle)
sales and profits of a product reach their peak.
M commerce
selling products and services via a smartphone application
Mortgage
a special type of loan which is used to pay for property or land. This is a long-term source of finance and is usually taken out over 20-25 years.
National minimum wage act 1998
sets the minimum hourly rate in which employees must be paid. This depends on the employee’s age and usually changes every April.
Need
something that a human being cannot live without.
Non durable goods
items that can only be used once or do not last for a long period of time.
Off the job training
training given outwith a workplace.
Online banking
used to carry out banking activities, e.g. transferring money to another recipient.
On the job training
training given within a workplace.
Opening balance
the money available at the beginning of a month.
Overstocking
when a business holds too much inventory.
Overtime
employees are paid extra for working more than their contracted hours.
Overtime ban
employees refuse to work more than their contracted hours.
Partnership
a business owned and controlled by 2 - 20 people, known as partners
Payments
money that is paid out of a business, e.g. energy costs.
Person specification
gives information about the type of person required for a job, e.g. skills, qualities, qualifications and experience.
Piece rate
employees are paid per item they produce.
Place
where a business makes their good or service available for the customer to buy.
Political factors
laws and legislation passed by the government which can influence business.
Premium(high) price
setting the price of a product higher than that of competitors.
Presentation software
used to create presentations and slide shows.
Price
how much money a business charges the customer to buy their good or service.
Primary sector
businesses which grow or extract raw materials.
Product
the actual good or service being sold by a business.
Profit/loss for the year
the profit made once expenses have been subtracted (gross profit−expenses).
Profit maximisation
the objective where a business aims to make as much profit as possible.
Promotion
the ways in which a business raises awareness of their product or service and persuades customers to buy it.
Purchasing mix
the factors that a business should consider when choosing a supplier.
Quality assurance
the quality of a product is inspected at every stage of production.
Quality circle
a small group of employees from different levels across a business meet regularly to discuss how to improve quality.
Quality control
a sample of raw materials are inspected before production begins and the finished good is inspected at the very end of production.
Rail freight
a method of distributing goods using trains.
Receipts
money that comes into a business, e.g. sales.
Recruitment
the process of attracting candidates to apply for a job.
Reference
filled out by a previous employer or teacher, which gives information about an applicant, e.g. their attendance, punctuality and suitability for a job.
Road freight
a method of distributing goods using vans, trucks and lorries.
Salary
employees’ pay is divided into twelve equal payments and paid monthly.
Sales maximisation
the objective where a business aims to sell as many goods and services as possible.
Sales revenue
money made from selling good to customers.
Sea freight
a method of distributing goods using ships.
Secondary sector
businesses which manufacture products.
Selection
the process of choosing the correct person for a job.
Services
things that are done for us.
Shareholders
individuals who invest in a private limited company in return for a percentage ownership of the business.
Share issue
selling shares to existing or new shareholders - only available to private limited companies (Ltd).
Shares
small portions of a business - each share is a percentage ownership of the business.
Sit in
employees enter the workplace but refuse to do any work.
Social enterprise
a third sector organisation which uses the profits it makes to help a social or environmental cause.
Social factors
people’s changing values, beliefs and lifestyles.
Sole trader
a business owned and controlled by one person.
Special offer
a short-term reduction in price which aims to increase sales of a product.
Spreadsheet
a piece of software that is used for calculations using formulae.
Stakeholder
an individual, group or organisation who have an interest in the business and can take actions to influence the success of a business.
Stakeholder influence
the actions a stakeholder can take which can positively or negatively impact on the business.
Stakeholder interest
what the stakeholder wants from the business or why they want it to be successful.
Strike
employees stop working altogether.
Supplier
a company which provides the materials and resources that are needed by a business to manufacture its product.
Surplus
more money coming into a business than going out of it.
Survival
the objective where a business aims to stay open and continue trading.
Target market
the group of customers that the business is aiming their product or service towards.
Technological factors
technology that the business is not currently using.
Teleworking
employees work away from the office and use ICT to communicate.
Tertiary sector
businesses which provide a service.
Testing
assessing the skills and abilities of an applicant.
Time rate
employees are paid per hour they work.
Total costs
fixed and variable costs added together.
Training
teaching employees new skills or updating their existing skills.
Understocking
when a business holds too little inventory.
Unlimited liability
the state of being legally responsible for paying the debts of a business.
Variable costs
costs which change depending on the level of output.
Videoconferencing
technology used for tasks such as interviewing applicants or providing training.
Want
something that a human being can live without but which makes life more enjoyable.
Word processing
software which is used for keying in text and documents such as letters, reports, newsletters.
Works council
made up of equal numbers of employees and management and meet on a regular basis to discuss work-related issues.
Work to rule
employees only carry out tasks which are in their contract of employment.
