Master Deck Flashcards
Surplus (Cash flow)
The amount of cash left when income is greater than expenditure (Income>Expenditure)
Cash Flow
Flow of money into and out of the business
Balance Sheet
A statement on what the business owns and owes on a given date.
Expenditure
Money which the business pays out.
Gross profit
Sales revenue minus cost of sales
Net Profit
Gross profit minus expenses
Business
An organization that produces useful goods/services so as to earn a profit
Fixed expenses
A cost that does not change with increased or decreased business
Intangible Asset
Saleable, though not material or physical
Management
The art and science of motivating people toward the achievement of a goal.
Market
A group of potential customers possessing purchasing power and unsatisfied needs
Contribution Margin
Gross margin minus sales and marketing expenses
Life Cycle
Maps the lifespan of a product on four stages: introduction, growth, maturity and decline.
Market Segmentation
Categorizing potential customers into groups of common characteristics- age, gender, income, geography or other attributes related to purchase or consumption behavior.
Market Share
The total sales of an organization divided by the sales of the market they serve
Marketing
The action of promoting and selling products to potential customers, attempting to positively influence their perception of the product and their purchasing choices.
Marketing Plan
A document with marketing strategies for offering a product over a defined period of time. Often one year.
Sales Forecast
The level of sales an organization expects to achieve based on a marketing strategy and assumed competition.
SWOT Analysis
A framework of identifying growth opportunities. Acronym for an organization’s internal Strengths & Weaknesses and external Opportunities & Threats.
Target Market
A defined market segment with common characteristics and a high propensity to purchase a particular product or service.
Span of Control
The number of subordinates directly reporting to a manager.
Centralization
An organizational structure that relies on one individual to provide direction for the company. Small businesses often use this structure.
Organizational Structure
Refers to the different hierarchies or levels in a company.
Decentralization
An organizational structure that often has several individuals responsible for making decisions. Rely on a team environment- individuals at each level have some autonomy.
