Key words - Year 1 Flashcards
Profit
The financial gain earned by a business after deducting total costs from total revenue.
Cash flow
The movement of money in and out of a business, reflecting its liquidity and ability to meet financial obligations.
Mission / mission statement
The fundamental purpose or reason for the existence of an organisation, defining its core values and guiding principles.
Objectives
Specific, measurable targets (SMART targets) set by an organisation to achieve its mission.
Revenue
The total income generated by a business from its primary operations, typically from sales of goods or services.
Fixed costs
Expenses that remain constant regardless of production or sales volume, such as rent or salaries.
Variable costs
Expenses that fluctuate based on production or sales volume, such as raw materials.
Sole trader
An individual business owner who operates and manages a business on their own, assuming full responsibility for profits and losses.
Private limited company (ltd)
A business entity with limited liability, typically owned by a small group of shareholders, and restricted from offering shares to the general public.
Public limited company (plc)
A corporation whose shares are traded on a public stock exchange, allowing a wide range of investors to buy and sell ownership stakes in the company.
Private sector
The part of the economy that is owned and operated by private individuals or companies, aiming to generate profits.
Public sector
The part of the economy that is owned and operated by the government, providing goods and services to the public.
Non-profit organisation
An organisation that operates for purposes other than profit, such as charitable, educational or social causes.
Social enterprise
A business entity that operates with a primary focus on addressing social or environmental issues.
Unlimited liability
The legal obligation of business owners to personally cover all debts and liabilities of the business, risking personal assets.
Ordinary share capital
The equity capital raised by a company through the issuance of ordinary shares to shareholders.
Market capitalisation
The total value of a company’s outstanding shares in the stock market, calculated by multiplying the current share price by the number of shares.
Dividends
Payments made by a company to its shareholders as a distribution of profits, usually in the form of cash or additional shares.
Management
The process of coordinating and directing the activities of an organisation to achieve its goals efficiently through planning, organising and controlling resources.
Leadership
The ability to inspire, influence and guide others towards achieving a common goal or vision.
Autocratic
A leadership style where decisions are made by a single individual with little or no input from subordinates, often characterised by strict control and centralised authority.
Paternalistic
A leadership style where the leader acts as a fatherly/motherly figure, making decisions for the benefit of employees while expecting loyalty and obedience in return.
Democratic
A leadership style that encourages participation, collaboration and decision-making by team members, promoting equality and shared responsibility.
Laissez-faire
A leadership style characterised by minimal intervention and a hands-off approach, where individuals or teams are given freedom to make their own decisions and manage their own tasks.