Glossary of terms Chapters 1, 6, 2, 3.1 Flashcards
Sole trader
a business owned by one individual with unlimited liability. this is an unincorporated business.
Primary sector
a business activity that involves extracting raw material.
absenteeism
employee’s non-attendance at work without good reason.
Adding value
selling a product for more than it costs to produce it.
Advertising
paid-for communication with consumers which uses printed and visual media. the aim is to inform and persuade the consumers to buy a product.
Currency exchange appreciation
a currency is said to appreciate if the value of the currency is increasing in terms of another currency.
Assets
resources owned by a business.
Autocratic leadership
a leadership style where the leader makes all the decisions
Average cost
the cost of producing a single unit of product.
Balance of payments
the difference between the value of export and import goods and services of a country over a year.
Bank loan
provision of finance by a bank which the business will repay with interest over an agreed amount of time.
Barriers to trade
usually taxes, quotas or bans that one country places on the goods of other countries to prevent or increase the cost of them entering that coutry
Bonus
an additional reward paid to employees for achieving targets set by the manager
Brand
A name, image or symbol that distinguishes a product from a competitors’ product
Brand image
the general impression of a product held by consumers
Break-even
the level of output where revenue equals total costs; the business is making neither profit nor loss.
Business activity
the process of producing goods and services to satisy consumer demand.
Business environment
the combination of internal and external factors that influence the operations of a business.
Business plan
a detailed written document outlining the purpose and ais of a bussiness which is often used to persuade lenders or investors to finance a business proposal.
Business start up
a newly formed business. they usually start small, but might grow to become much bigger.
Capital expenditure
spending by a business on non-current assets such as machinery and buildings.
Goods
tangible products that consumers buy to satisfy their needs.
Capital goods
physical goods used by other business to help produc other goods and services such as machinery and delivery vehicles.
Centralized organization
an organization where all the important decisions is held at a head office, or the centre.
Chain of command
the route through which authority is passed down through an organization.
Chain of production
the production and supply of goods to the final consumer involving activities from primary, secondary and tertiary sector businesses.
Channels of distribution
how a product gets from the producer to a customer.
Chief executive office (CEO)
the most senior manager possible for the overall performance and success of a company.
Commission
payment to sales staff based on the value of the items they sell.
Competitive pricing
setting a price similar to that of a competitors’ products which are already established in the market.
Consumer
the final user of a product
Costs of sales
the costs of purchasing the goods to make the products sold.
Crowd-funding
financing a business idea by obtaining small amounts from a large group of people, most often using the internet or social media networks.
