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.