Key Terms A - I

Question 1

Advertising

Answer 1

Paid for communication, aimed at informing or persuading

Question 2

Assessment centres

Answer 2

Where a recruiting firm runs a series of extended selection procedures

Question 3

Automation

Answer 3

The replacement of workers with machines to perform tasks in production

Question 4

Boston matrix

Answer 4

A mod which analyses the product portfolio of a business into four categories (stars, cash cows, problem children, dogs)

Question 5

Branding

Answer 5

The use of a trade name, symbol, logo or other device to differentiate a product or service

Question 6

Budget

Answer 6

A detailed plan of income and expenditure expected over a certain period of time

Question 7

Business to business (B2B)

Answer 7

Involves the selling of products and service by one business directly to another business

Question 8

Capacity utilisation

Answer 8

The proportion of total capacity that is used (%)

Question 9

Communication

Answer 9

The process of exchanging information or ideas or ideas between individuals or groups

Question 10

Competition

Answer 10

The businesses that compete for a share of a market

Question 11

Competitiveness

Answer 11

The ability of a business to offer a better product or service than other competitors

Question 12

Cost reduction

Answer 12

Actions taken by a business, aimed at reducing total cost, or lowering average unit costs

Question 13

Customer expectations

Answer 13

What customers expect to receive as a result of buying a good or a service

Question 14

Customer service

Answer 14

The ways in which a business meets the needs and wants of its customers

Question 15

Delegation

Answer 15

Where responsibility for carrying out a task or role is passed onto someone else in the business

Question 16

Direct selling

Answer 16

A method of distribution which involves a business transacting with a customer without the use of intermediaries

Question 17

Empowerment

Answer 17

Delegating power to employees so that they can make their own decisions

Question 18

External recruitment

Answer 18

Where candidates for a job vacancy come from outside the organisation

Question 19

(debt-) Factoring

Answer 19

A source of finance obtained by selling debt owed to a business to a third party

Question 20

Favourable variance

Answer 20

A difference between actual and budgeted which is “good news” (e.g. Actual costs are lower than budgeted costs)

Question 21

Flexible working

Answer 21

Where a business uses a number of different working practices in order to suit the job in hand and the needs of employees

Question 22

Hierarchy

Answer 22

The structure and number or layers of management and supervision in an organisation

Question 23

Induction training

Answer 23

Training aimed at introducing new employees to a business and its procedures

Question 24

Adverse variance

Answer 24

A difference between actual and budgeted amounts which is “bad news” - e.g. Higher costs are incurred than what was budgeted