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Business A-level > Key words - Year 1 > Flashcards

Key words - Year 1 Flashcards

1
Q

Profit

A

The financial gain earned by a business after deducting total costs from total revenue.

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2
Q

Cash flow

A

The movement of money in and out of a business, reflecting its liquidity and ability to meet financial obligations.

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3
Q

Mission / mission statement

A

The fundamental purpose or reason for the existence of an organisation, defining its core values and guiding principles.

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4
Q

Objectives

A

Specific, measurable targets (SMART targets) set by an organisation to achieve its mission.

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5
Q

Revenue

A

The total income generated by a business from its primary operations, typically from sales of goods or services.

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6
Q

Fixed costs

A

Expenses that remain constant regardless of production or sales volume, such as rent or salaries.

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7
Q

Variable costs

A

Expenses that fluctuate based on production or sales volume, such as raw materials.

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8
Q

Sole trader

A

An individual business owner who operates and manages a business on their own, assuming full responsibility for profits and losses.

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9
Q

Private limited company (ltd)

A

A business entity with limited liability, typically owned by a small group of shareholders, and restricted from offering shares to the general public.

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10
Q

Public limited company (plc)

A

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.

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11
Q

Private sector

A

The part of the economy that is owned and operated by private individuals or companies, aiming to generate profits.

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12
Q

Public sector

A

The part of the economy that is owned and operated by the government, providing goods and services to the public.

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13
Q

Non-profit organisation

A

An organisation that operates for purposes other than profit, such as charitable, educational or social causes.

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14
Q

Social enterprise

A

A business entity that operates with a primary focus on addressing social or environmental issues.

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15
Q

Unlimited liability

A

The legal obligation of business owners to personally cover all debts and liabilities of the business, risking personal assets.

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16
Q

Ordinary share capital

A

The equity capital raised by a company through the issuance of ordinary shares to shareholders.

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17
Q

Market capitalisation

A

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.

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18
Q

Dividends

A

Payments made by a company to its shareholders as a distribution of profits, usually in the form of cash or additional shares.

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19
Q

Management

A

The process of coordinating and directing the activities of an organisation to achieve its goals efficiently through planning, organising and controlling resources.

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20
Q

Leadership

A

The ability to inspire, influence and guide others towards achieving a common goal or vision.

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21
Q

Autocratic

A

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.

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22
Q

Paternalistic

A

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.

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23
Q

Democratic

A

A leadership style that encourages participation, collaboration and decision-making by team members, promoting equality and shared responsibility.

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24
Q

Laissez-faire

A

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.

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25
Q

Opportunity cost

A

The value of the next best alternative that must be forgone when a decision is made to allocate resources to a particular option.

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26
Q

Stakeholder

A

Individuals or groups who have an interest, involvement, or are affected by the activities and outcomes of a business, including employees, customers, shareholders, and the community.

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27
Q

Sales volume

A

The total number of units of a product or service sold within a specified time period.

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28
Q

Sales value

A

The total monetary worth of a product or service sold within a specific time frame, calculated by multiplying the number of units sold by their respective prices.

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29
Q

Market size

A

The total value or quantity of a specific product or service that can potentially be sold in a defined market during a given period, often measured in terms of revenue or units.

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30
Q

Market share

A

The percentage of total sales within a specific market that a particular company or product holds, reflecting its relative position compared to competitors.

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31
Q

Qualitative data

A

Information or data that is descriptive in nature and provides insights into opinions, behaviours and attitudes.

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32
Q

Quantitative data

A

Information or data that is numerical in nature and can be measured and quantified.

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33
Q

Primary market research

A

The process of collecting original data directly from the source through methods like surveys, interviews or observations.

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34
Q

Secondary market research

A

The process of gathering existing data and information that has already been collected by others, such as industry reports, articles or government publications.

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35
Q

Sampling

A

The process of selecting a subset of individuals or units from a larger population to represent the whole.

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36
Q

Random sampling

A

A sampling technique where every member of the population has an equal chance of being selected for the sample.

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37
Q

Stratified sampling

A

A sampling technique where the population is divided into subgroups or strata, and random samples are taken from each subgroup.

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38
Q

Quota sampling

A

A sampling technique where specific quotas or proportions of the population are selected based on certain characteristics.

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39
Q

Positive correlation

A

A statistical relationship in which the values of two variables tend to move in the same direction, meaning an increase in one variable corresponds to an increase in the other.

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40
Q

Negative correlation

A

A statistical relationship where the values of two variables move in opposite directions, indicating that an increase in one variable is associated with a decrease in the other.

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41
Q

Confidence interval

A

A range of values the research is expected to fall between.

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42
Q

Extrapolation

A

The process of estimating or projecting future data points based on existing trends or patterns.

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43
Q

Segmentation

A

The process of dividing a market into distinct groups of consumers based on similar characteristics or needs.

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44
Q

Positioning

A

The strategic process of creating a distinct identity or image for a product or brand in the minds of consumers relative to competitors.

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45
Q

Niche marketing

A

A marketing strategy that targets a specific segment or niche of the market with specialised products or services.

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46
Q

Mass marketing

A

A marketing strategy that targets the entire market with standardised products or messages.

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47
Q

Boston matrix

A

A strategic planning tool that categorises a company’s products or business units based on their market share and growth rate.

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48
Q

Product life cycle

A

The stages that a product goes through from introduction to decline, including development, growth, maturity and decline.

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49
Q

Extension strategies

A

Marketing strategies aimed at extending the life cycle of a product.

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50
Q

Penetration pricing

A

A pricing strategy where the initial price of a product is set low to gain market share quickly.

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51
Q

Price skimming

A

A price strategy where the initial price of a product is set high to maximise profits from the most eager customers before gradually lowering the price.

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52
Q

Branding

A

The process of creating unique name, design, symbol or image that identifies and differentiates product or service from competitors.

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53
Q

Viral marketing

A

A marketing technique that relies on individuals spreading a marketing message or content rapidly through word-of-mouth or online sharing.

54
Q

Multi-channel distribution

A

The use of multiple channels or methods to distribute products or services to reach a wider audience, such as online sales, retail stores and direct sales.

55
Q

Digital marketing

A

Marketing strategies and tactics that utilise digital technologies and platforms, such as social media, email and websites, to promote products or services.

56
Q

E-commerce

A

The buying and selling of goods or services over the internet or through electronic channels.

57
Q

Added value

A

The increase in worth of a product or service because of the production process or additional features, measured by the difference between the selling price and the cost of inputs.

58
Q

Labour productivity

A

The measure of output produced per unit of labor input.

59
Q

Unit costs (average costs)

A

The average cost per unit of output, calculated by dividing total production costs by the number of units produced.

60
Q

Capacity

A

The maximum level of output or production that a business can sustain over a given period with its existing resources.

61
Q

Capacity utilisation

A

The extent which a business utilises its production capacity to meet demand, calculated as actual output divided by maximum possible output, multiplied by 100.

62
Q

Efficiency

A

The ratio of output to input, measuring how well resources are utilised to achieve desired outcomes.

63
Q

Just in time (JIT)

A

An inventory management approach that aims to minimise inventory levels by receiving goods only as they are needed in the production process.

64
Q

Just in case (JIC)

A

An inventory management approach where businesses maintain higher inventory levels as a precaution to meet unexpected increases in demand or supply chain disruptions.

65
Q

Lean production

A

A production philosophy that emphasises minimising waste, improving efficiency and maximising value for customers through continuous improvement.

66
Q

Labour intensive

A

A production processor industry that requires a significant amount of labour relative to capital inputs.

67
Q

Capital intensive

A

A production process or industry that relies heavily on machinery, equipment or capital investment relative to labour inputs.

68
Q

Quality assurance

A

The systematic process of ensuring that products or services meet specified standards and conform to established quality criteria.

69
Q

Quality control

A

The process of inspecting, testing and monitoring products or services during and after production to ensure they meet predetermined quality standards.

70
Q

Outsourcing

A

The practice of contacting out certain business functions or processes to external third-party service providers.

71
Q

Temporary employees

A

Workers who are hired for a limited period to fulfil specific roles or tasks.

72
Q

Part-time employees

A

Workers who are employed for fewer hours than full-time employees, typically working on a regular schedule.

73
Q

Producing to order

A

A production strategy where goods are manufactured only after receiving customer orders, reducing the need for inventory storage and minimising waste.

74
Q

Lead time

A

The amount of time it takes for an order to be fulfilled from the moment it is placed until it is delivered to the customer.

75
Q

Re-order levels

A

The predetermined inventory level at which new orders should be placed to replenish stock and maintain sufficient inventory levels.

76
Q

Buffer level

A

An additional inventory stock kept as a reserve to account for unexpected fluctuations in demand, supply chain disruptions or production delays.

77
Q

Re-order quantity

A

The quantity of goods that shucked be reordered when inventory levels reach the re-order point, ensuring continuity of supply.

78
Q

Return on investment (ROI)

A

A measure of the profitability of an investment, calculated as the ratio of net profit generated by the investment to the initial investment cost.

79
Q

Gross profit

A

The difference between revenue and the cost of goods sold, representing the profit earned from primary business activities before deducting other expenses.

80
Q

Operating profit

A

The profit earned from a company’s core business operations after deducting expenses from gross profit.

81
Q

Profit for the year

A

The net income or profit earned by a company over a specific accounting period, typically calculated after deducting all expenses, taxes and dividends.

82
Q

Adverse variance

A

A difference between actual performance and budgeted or expected performance that results in a negative impact on a company’s financial results.

83
Q

Favorable variance

A

A difference between actual performance and budgeted or expected performance that results in a positive impact on a company’s financial results.

84
Q

Break even output

A

The level of output at which total revenue equals total costs, resulting in neither profit nor loss.

85
Q

Margin of safety

A

The difference between actual sales and the break-even point, representing the amount by which sales can drop before a company incurs losses.

86
Q

Contribution per unit

A

The amount of revenue remaining after deducting variable cost per unit from selling price, representing the contribution of each unit sold towards covering fixed costs.

87
Q

Total contribution

A

The total amount of revenue remaining after deducting variable costs from sales revenue, available to cover fixed costs and contribute to profit.

88
Q

Payables

A

Amounts owed by a business to its suppliers or creditors for goods or services purchased on credit.

89
Q

Receivables

A

Amounts owed to a business by its customers or debtors for goods or services provided on credit.

90
Q

Profit from operations

A

The profit earned from a company’s core business activities before deducting interest and taxes.

91
Q

Break even analysis

A

A financial technique used to determine the level of sales or output needed to cover total costs and break even, helping businesses make informed decisions.

92
Q

Debt factoring

A

A financing arrangement where a business sells its accounts receivable to a third party (factor) at a discount to obtain immediate cash.

93
Q

Overdrafts

A

Short-term loans provided by banks that allow businesses to withdraw more money from their bank accounts than they have available, up to an agreed limit.

94
Q

Retained profits

A

The portion of a company’s net income that is retained and reinvested in the business rather than distributed to shareholders as dividends.

95
Q

Share capital

A

The total value of funds raised by a company through the issuance of shares to shareholders, representing ownership in the company.

96
Q

Loans

A

Funds borrowed by a company from external sources, typically financial institutions or lenders, which must be repaid with interest over a specified period.

97
Q

Venture capital

A

Equity financing provided to early-stage, high-potential startups or small businesses by investors in exchange for ownership stakes, with the expectation of high returns.

98
Q

Crowdfunding

A

A method of raising capital for a project or venture by soliciting small contributions from a large number of individuals, often through online platforms.

99
Q

Cash flow

A

The movement of money in and out of a business, reflecting its liquidity and ability to meet financial obligations.

100
Q

Employee engagement

A

The extent to which employees are committed to their work, motivated to contribute to organisational success, and feel a sense of fulfilment and connection to their job and workplace.

101
Q

Talent development

A

The strategic process of identifying, attracting, developing and retaining skilled employees to meet current and future organisational needs.

102
Q

Training

A

The process of providing employees with specific knowledge, skills and competencies to improve performance and productivity in their current roles.

103
Q

Diversity

A

The presence of a variety of backgrounds, perspectives and characteristics within a workforce, including difference in race, gender, ethnicity, age and sexual orientation.

104
Q

Hard human resource management (hard HRM)

A

A management approach that treats employees as just another resource for the achievement of business goals.

105
Q

Soft human resource management (soft HRM)

A

A management approach that aims to empower employees and support them to achieve their potential.

106
Q

Labour turnover

A

The rate at which employees leave and are replaced within an organisation over a specific period, often expressed as a percentage of the total workforce.

107
Q

Functional structure

A

An organisational design where employees are grouped based on their specialised functions, such as marketing, finance or operations.

108
Q

Product-based structure

A

An organisational design where employees are grouped according to the products or services they work on.

109
Q

Regional structure

A

An organisational design where employees are organised based on geographic regions, accommodating differences in local markets, regulations or customer needs.

110
Q

Matrix structure

A

An organisational design that combines elements of both functional and product structures, allowing employees to report to multiple managers and work on cross-functional teams.

111
Q

Authority

A

The power or right to give orders and make decisions.

112
Q

Span

A

The number of subordinates or employees directly reporting to a manager.

113
Q

Hierarchy

A

A system of ranking and organising individuals or groups within a business based on authority, responsibility and status.

114
Q

Delegation

A

The process of assigning authority to subordinates to carry out specific tasks or decisions, while retaining overall accountability.

115
Q

Centralisation

A

The concentration of decision-making authority at the top levels of an organisation.

116
Q

Decentralisation

A

The distribution of decision-making authority to lower levels of an organisation, allowing greater autonomy.

117
Q

Human resource plan

A

A strategic document that outlines workforce needs, goals and strategies for recruitment, development and retention of employees.

118
Q

Recruitment

A

The process of attracting, sourcing and selecting qualified candidates to fill job vacancies within a business.

119
Q

Redeployment

A

The transfer of employees from one role or department to another within the same business, often to meet changing business needs or utilise existing skills.

120
Q

Redundancy

A

The termination of employment due to the elimination of a job role or position that is no longer necessary or viable within an organisation.

121
Q

Piece rate

A

A compensation system where employees are paid based on the number of units or pieces they produce or complete.

122
Q

Commission

A

A form of compensation tied to sales or performance, usually calculated as a percentage of sales revenue generated.

123
Q

Salary

A

A fixed, regular payment paid to an employee on a monthly or annual basis, regardless of the hours worked or output produced.

124
Q

Performance-related pay

A

A compensation system that links an employee’s pay to their individual or team performance, typically based on predetermined goals or metrics.

125
Q

Empowerment

A

The delegation of authority and decision-making power to employees.

126
Q

Flexible working

A

A work arrangement that allows employees to vary their working hours, location or patterns to accommodate personal needs or achieve a better work-life balance.

127
Q

Job enrichment

A

A job design approach that involves increasing the depth of tasks and responsibilities within a role to provide employees with greater autonomy, challenge and opportunities for growth.

128
Q

Job rotation

A

A human resource development strategy that involves periodically moving employees between different roles or departments within a business to broaden their skills and experiences.

129
Q

Trade union

A

An organised group of workers formed to protect and promote their interests, often involved in negotiations with employers regarding wages, benefits and working conditions.

130
Q

Works council

A

A representative body of employees within a business, typically elected or appointed to represent employee interests and facilitate communication with management.

Business A-level (3 decks)

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