Master Deck

Question 0

Surplus (Cash flow)

Answer 0

The amount of cash left when income is greater than expenditure (Income>Expenditure)

Question 1

Cash Flow

Answer 1

Flow of money into and out of the business

Question 2

Balance Sheet

Answer 2

A statement on what the business owns and owes on a given date.

Question 3

Expenditure

Answer 3

Money which the business pays out.

Question 4

Gross profit

Answer 4

Sales revenue minus cost of sales

Question 5

Net Profit

Answer 5

Gross profit minus expenses

Question 6

Business

Answer 6

An organization that produces useful goods/services so as to earn a profit

Question 7

Fixed expenses

Answer 7

A cost that does not change with increased or decreased business

Question 8

Intangible Asset

Answer 8

Saleable, though not material or physical

Question 9

Management

Answer 9

The art and science of motivating people toward the achievement of a goal.

Question 10

Market

Answer 10

A group of potential customers possessing purchasing power and unsatisfied needs

Question 11

Contribution Margin

Answer 11

Gross margin minus sales and marketing expenses

Question 12

Life Cycle

Answer 12

Maps the lifespan of a product on four stages: introduction, growth, maturity and decline.

Question 13

Market Segmentation

Answer 13

Categorizing potential customers into groups of common characteristics- age, gender, income, geography or other attributes related to purchase or consumption behavior.

Question 14

Market Share

Answer 14

The total sales of an organization divided by the sales of the market they serve

Question 15

Marketing

Answer 15

The action of promoting and selling products to potential customers, attempting to positively influence their perception of the product and their purchasing choices.

Question 16

Marketing Plan

Answer 16

A document with marketing strategies for offering a product over a defined period of time. Often one year.

Question 17

Sales Forecast

Answer 17

The level of sales an organization expects to achieve based on a marketing strategy and assumed competition.

Question 18

SWOT Analysis

Answer 18

A framework of identifying growth opportunities. Acronym for an organization’s internal Strengths & Weaknesses and external Opportunities & Threats.

Question 19

Target Market

Answer 19

A defined market segment with common characteristics and a high propensity to purchase a particular product or service.

Question 20

Span of Control

Answer 20

The number of subordinates directly reporting to a manager.

Question 21

Centralization

Answer 21

An organizational structure that relies on one individual to provide direction for the company. Small businesses often use this structure.

Question 22

Organizational Structure

Answer 22

Refers to the different hierarchies or levels in a company.

Question 23

Decentralization

Answer 23

An organizational structure that often has several individuals responsible for making decisions. Rely on a team environment- individuals at each level have some autonomy.

Question 24

Tall Structure

Answer 24

Results in one long chain of command. As business grows, number of management levels increases and the structure grows taller.

Question 25

Flat Structure

Answer 25

Have fewer management levels, with each level controlling a broad area. Encourages autonomy and self-direction.

Question 26

Bureaucratic Organization

Answer 26

Has rigid and tight procedures, and is reluctant to change. Very organized, with a high degree of formality, and makes decisions through an organized process.

Question 27

Functional Structure

Answer 27

An organization that is grouped based on specialization by functional areas, such as IT, finance and marketing.

Question 28

Divisional Structure

Answer 28

Made up of autonomous, self-contained divisions, each with its own top executive.

Question 29

Hierarchical Organization

Answer 29

Pyramid-like organization where one person is in charge of a functional area with one or more subordinates handling sub-functions. Chain of command extends from top to bottom.