Glossary Flashcards
What are aims in a business context?
Aims are the longer term goals of businesses, for example, to increase profits.
What is annual turnover?
Annual turnover is the yearly income (sales) of the business.
What is appraisal in the workplace?
Appraisal is the process of evaluating how well an employee is doing their job and providing feedback.
Define cash flow.
Cash flow is the measurement of cash coming into or going out of a business.
What does cash refer to in a business context?
Cash is money in notes and coins, or money in the bank.
Who is considered a consumer?
A consumer is the person or group of people who buys and uses the product.
What is cost of sales?
Cost of sales is the actual amount of goods sold, calculated by adding opening inventory and purchased goods, then subtracting closing inventory.
What does customer service encompass?
Customer service refers to any interaction between a company and its customers, including assistance and advice about products or services.
Who are directors in a business?
Directors are the senior managers appointed by shareholders to manage a limited company.
What is division of labour?
Division of labour is where members of a production team are divided into smaller groups or tasks to complete the production process.
What are import duties?
Duties are additional taxes imposed on certain imported goods to make them more expensive compared to local products.
What does e-business mean?
E-business means conducting business activities through the internet using devices such as laptops and smartphones.
Define economies of scale.
Economies of scale are reductions in costs per unit achieved by an increase in the number of products produced.
What is an exchange rate change?
Exchange rate change is the amount by which the rate of exchange between two currencies changes.
Define exchange rate.
Exchange rate is the rate at which one currency can be converted to another.
What are expenses in a business?
Expenses are the running costs of the business.
What are exports?
Exports are goods sent to one country from another.
What are extension strategies?
Extension strategies are ways in which a business can extend the lifespan of a product or service.
What is a franchise?
A franchise is a business set up by a franchisee with permission from the franchisor to use their name and business idea.
Who is a franchisee?
A franchisee is someone who buys a franchise from a franchisor.
Who is a franchisor?
A franchisor is someone who sells a franchise to a franchisee.
What is gross profit?
Gross profit is the difference between sales revenues and cost of sales.
Define imports.
Imports are goods brought into one country from another.
What does international trade involve?
International trade means participating in trading activities outside of the domestic market.
What is inventory control?
Inventory control refers to the efficient management of inventory to reduce costs and increase profitability.
What is a job description?
A job description is a document that defines the main duties and responsibilities of a job.
What is a limited company?
A limited company is a business owned by shareholders and managed by appointed directors.
What does limited liability mean?
Limited liability means a business owner will only lose the amount invested in the business in case of bankruptcy.
Define liquidity.
Liquidity refers to a business’s ability to pay its short-term financial obligations.
What is location in a business context?
Location is a specific place or position where a business can be found.
Who is a manufacturer?
A manufacturer is the producer or original creator of a product.
What is a market?
A market is a place where buyers and sellers meet to buy and sell goods and services.
What does market share represent?
Market share represents the proportion of sales a business has achieved, expressed as a percentage of the total sales in the market during a specific time period.
What is M-business?
M-business (mobile business) is any business done using mobile technologies, which include smartphones, tablets and portable computers.
What are media channels?
Media channels are means of mass communication between interested stakeholders.
What is a merger?
A merger is a situation where at least two businesses join together to pool the assets and liabilities to form a joint business entity.
What is a mission statement?
A mission statement is a summary of the aims and objectives of the business.
What is a monopoly?
A monopoly is a market structure where a single seller sells a product or service that has no close substitute in the market.
What is net profit?
Net profit is the difference between gross profit and total expenses.
What are objectives in business?
Objectives are the more specific targets to help achieve the stated business aims.
What are overheads?
Overheads are the expenses incurred in running a business. Direct overheads vary in direct proportion to output, while indirect overheads remain fixed irrespective of output levels.
What is a partnership?
A partnership is where two or more people share the ownership of their business.
What is a person specification?
A person specification details the specific qualifications, attributes, skills and work experience of the ideal person for the post.
What does private sector mean?
Private sector means businesses which are owned privately by individuals or groups.
What is profit margin per unit?
Profit margin per unit is the amount of profit per unit a business will gain, expressed as a percentage of sales price or an amount (£) relative to the sales price.
What does public sector mean?
Public sector means businesses which are owned by the country and managed by the government.
What is a quota?
A quota is a limit placed on the quantity of specific goods which may be imported to a country, which has the effect of restricting its availability to consumers.
What is recruitment?
Recruitment is the process of attracting the best qualified and most highly skilled employees available in the labour market, to fill vacant roles within a business organisation.
What is a retailer?
A retailer is the seller of the product, usually a shop or website.
What is sales revenue?
Sales revenue is the total sales of products and services to customers over a given period, normally a year.
What is selection in recruitment?
Selection is the correct identification and appointment of the best candidate to the job role.
What is a share?
A share is a document that gives its owner part ownership of a limited company.
Who is a shareholder?
A shareholder is the owner of shares in a limited company and who is, therefore, part owner of that business.
What are social recruiters?
Social recruiters refers to jobs that are obtained due to social media.
What is a sole trader?
A sole trader is a business owned and controlled by one person.
Who are stakeholders?
Stakeholders are people or organisations who have an interest in the ongoing operations of enterprises.
What is a stock exchange?
A stock exchange (or stock market) offers a trading facility where members of the exchange can buy and sell shares in public limited companies.
What are synergies?
Synergies are the combination of resources from separate businesses which, when combined, yield results which are greater than the sum of the resources combined.
What is a takeover?
A takeover is a situation where one business acquires another, taking ownership of the assets and liabilities.
What are tariffs?
Tariffs are additional charges levied on a product imported to a country, which have the effect of increasing the cost of the product to the consumer.
What is training in a business context?
Training is where employees acquire new knowledge and skills, such as updated methods in technology, new ICT skills or updated laws with regards to their role.
What is a wholesaler?
A wholesaler is an organisation which stores products for manufacturers and retailers.
What does SMART stand for?
Specific, Measurable, Attainable, Realistic, Timely
What acronym should a business objectives be?
SMART.
In order to succeed a business objective should be Specific, measurable, attainable, realistic and timely
