Subject Specific Vocabulary Flashcards
Advertising
A method of communicating information about the product , the business pays for advertising time\ space
Aim
The intetion to reach a goal
Air polution
The presence or induction of harmful substances into air causing disease allergies or damage to humans animals or plants or to built enviroment
Asset
Something the business owns; it has a value.
Average rate of return
The average profit for the year as a percentage of the original investment.
Average rate or return = average return per annum / initial × 100
Boston matrix
A tool for analysing the contribution made by each product in a business’
product portfolio. It plots each product’s position according to its market share
and the rate of growth of the market.
Brand image
The consumers’ perception of the brand; its character, qualities and shortcomings. It is developed over time and operates as a consistent theme through advertising campaigns.
Break even chart
A diagrammatic representation of the costs and revenue for a product; it plots total costs against total sales revenue, showing the break-even point where they cross.
Break even output
The point at which the business’ total sales equals the total costs. There is neither profit nor loss.
Buffer stock
A stock of raw materials held in reserve to protect the production process from unforeseen shortages.
Business plan
A detailed statement of how the business intends to operate, either at start-up or during a given period of time. Business plans are based on forecasts and so cover only a short time.
Cash
Money that the business has in cash or at the bank.
Cash flow forecast
A financial planning tool that estimates the money coming into and going out of the business on a month-by-month basis; it allows the business to predict times when additional finance may be needed to maintain liquidity.
Cash flow forecast
A financial planning tool that estimates the money coming into and going out of the business on a month-by-month basis; it allows the business to predict times when additional finance may be needed to maintain liquidity.
Cash inflow
Money received by the business from its operations or investments.
Cash outflow
Money paid out by the business to fund its operations or investment activities.
Centralisation
Maintaining control by keeping authority at the senior levels of the organisation.
Chain of command
The line through the hierarchy that shows who is responsible for whom from top to bottom of an organisation.
Channels of distrubution
The route the ownership of the product transfers from the seller to the buyer; it may be a single transaction or pass through others such as wholesalers, distributors, agents and retailers.
Closing balance
The amount that remains in the account at the end of an accounting period.
Commision
An amount of money paid to an employee that is based on a percentage of the sales he/she achieved; paid in addition to a basic salary.
Competition
An amount of money paid to an employee that is based on a percentage of the sales he/she achieved; paid in addition to a basic salary.
Competition
The rivalry between businesses looking to sell their goods/services in the same market.
Competive
Setting the price of a product so that it is in line with competitors’ prices.
Consumer law
Laws designed to ensure that businesses make products that are safe and of good quality, and that they deal with customers honestly and fairly.
Consumer spending
The money spent by households on goods and services to satisfy their needs and wants.
Contracts of employment
A legal document that sets out the terms and conditions of the job for the employer and the employee.
Cost
The money spent by a business on goods and services.
Cost-plus pricing
Setting the price of a good or service at an amount higher than the cost of producing it so that a profit is made.
Customer
Individuals, businesses or organisations that purchase goods/services and make decisions about which supplier to choose.
Customer engagement
The relationship between the business and the customer that puts the customer’s requirements at the centre of the operation to build brand loyalty.
Customer loyalty
The likelihood that past customers will continue to buy from the business, enhanced by high quality customer service and/or reward programmes.
Customr satisfaction
Whether customers are pleased with the goods/services they receive; whether they would purchase again.
Decentralisation
Where authority is spread widely through the organisation.
Delaying
The reorganisation of the organisation’s employees so that there are fewer levels of management
Delegation
Allocating a task to someone who would not normally be responsible for it.
Demand
The quantity of a particular product that will be bought at particular price over a specific time
Directors
The people who are elected by the shareholders to run the business on their behalf.
Diseconnonmies of scale
When a business grows too large, leading to a possible increase in unit cost.
Disposal of waste
The removal, storage or destruction of unwanted material. Methods include recycling, burning and landfill sites.
Dividend
A portion of the after-tax profit that is paid to shareholders according to the number of shares they own.
E commerce
Business transactions carried out electronically on the internet.
Economies of scale
The cost advantage of producing on a large scale. As output increases the unit cost decreases.
Employees
Individuals who work full time or part time for the business; they have a contract of employment detailing their duties and rights.
Employment law
Rulings that relate to the rights and responsibilities of people who work for a business; they affect the recruitment and selection process and how the business deals with its workers
Enterprie
The ability to identify business ideas and opportunities to bring them to fruition and to take risks where appropriate.
Entrepreneur
A person who has the vision to use initiative to make business ideas happen, managing
Equality Act (2010)
Protects people from discrimination in the workplace and in wider society. It sets out the different ways in which it is unlawful to treat someone.
Ethical objectives
A business’ goals that relate to fair business practice or moral guidelines and make a positive contribution to the business’ reputation.
Ethics
The moral principles that guide how a business operates.
Exchange rates
The price of one currency based on another or the cost of buying one currency from another, for example £1 = $1.21.
Expansion
The process of increasing a business’ size.
Export
Good/service sold to a customer in another country.
Extension strategies
Methods that can be used to prolong the life of a product; could include price reductions, modifications to the product or relaunch.
External growth
The growth of a business by joining with another by merger or takeover.
External sources of finance
Obtaining funds from sources that are not part of the business; possibilities include bank loan, mortgage, overdraft, additional partner or share issue.
Factors of production
The elements that combine in the production process: land, labour, capital and enterprise.
Noise pollution
A type and level of noise that is excessive and disturbing to people or animals.
Not-for-profit organisations
Associations, charities, co-operatives or voluntary organisations set up to further non-monetary ideals such as cultural, educational, religious and public service. Profits/losses are retained/absorbed.
Objective
A specific statement that defines a precise goal that can be measured and delivered within a given time.
Off-the-job training
Employees are trained away from their job, at a college, training provider or the business’ training centre.
On-the-job training
Employees learn alongside experienced colleagues while they are doing the job.
Opening balance
The amount brought forward from the end of the preceding accounting period so that it is the starting figure for the new one.
Opportunity cost
The cost of making one choice concerning the use of limited resources at the expense of an alternative choice.
Organic growth
A business grows by increasing its output, by increasing its customer base or by developing new product(s).
Organisational structures
The way in which the organisation is divided into levels of management, functions and responsibilities.
Outsourcing
Contracting another business to carry out some of the business’ activities, often to reduce costs.
Overdraft
Borrowing from a bank by drawing from a current account so that the balance becomes less than zero.
Owners
Individuals who own the business or own a share(s) in it, in return for the rights to decision making and profits, balanced with the risks involved.
Part time
Working only a proportion of the full time hours.
Partnerships
A business that is owned and operated by a group of between 2 or more people.
Person specification
Identifies the requirements of the job holder, including qualifications, experience and skills.
Point of sale
Opportunities to communicate information about the product in the place where it is sold (retail outlet); window displays, hanging signs or shelf signs.
Post-sales servicing
Maintenance or repair of equipment by the manufacturer or supplier during or after the warranty.
PR
Managing the relations with groups such as consumers, the media, pressure groups or investors to present a favourable impression and generate interest.
Price penetration
Fixing a low price when a new product is first introduced (into an established market) so that the product gains market share quickly. Once the product is established, the price is then raised so that profit is increased.
Price skimming
Setting a very high price when a product (often technology item) is first introduced to the market in relatively small numbers; only those who can afford to pay high prices to own the latest models will be able to purchase the product. The price is later reduced so that others can afford to buy.
Primary industry
A business that extracts the earth’s natural resources.
Primary research
Collecting information first-hand direct from the public; field research including surveys, questionnaires and testing designed specifically for the market/product.
Private limited company (ltd)
A business that is owned by shareholders; the shares are not available to the general public. Shareholders have limited liability.
Procurement
The process of buying goods and services including dealing with:
demand
selection of suppliers
analysing and negotiating prices
making the purchase
managing payments.
Product differentiation
Developing the features that set a product apart from others in the market (such as benefits, style, price) and using that as part of advertising and promotion.
Product knowledge
An in-depth understanding of the features, use and application of the good/service that will enable the person selling it to provide any information that the purchaser wants before committing to buy.
Product life cycl
The stages through which a product travels during its journey from being an idea to being old and dated: research and development, introduction, growth, maturity, decline.
Product portfolio
The range of products offered by one producer.
Product recalls
The withdrawal from sale by the manufacturer of a defective or contaminated item.
Productivity
The amount produced by a worker/machine/factory in a given time; the ability to produce more output with fewer resources.
Profit
The difference between the money received from the sale of a good/service and the amount it cost; the amount that remains after all the costs have been paid.
Profit = total revenue – total cost
Profit maximisation
A business’ ability to make maximum profit with low operating expenses.
Profit sharing
A scheme that pays employees an additional amount based on the year’s profits.
Promotion
Communicating information about the product to:
make consumers aware of a product
remind customers about a product
persuade customers to buy.
Proximity to market
Businesses that serve their customers directly must be located close to those customers.
Public limited company (plc)
A business that is owned by shareholders. Anyone can buy shares in the business. Shareholders have limited liability.
Purchasing
The business buys the goods and services that it needs for producing the goods it sells or for delivering the services it sells.
Qualitative market research
Collecting information about potential customers’ opinions and preferences about the attributes/characteristics/properties of a product; open questions allow respondents to express their own views by not limiting their responses.
Quantitative market research
Using sampling techniques such as surveys where the findings are expressed numerically; closed questions allow a limited choice of responses and are easy to turn into statistics for analysis.
Raising finance
Getting the money to pay for starting the business or for developing it.
Raw materials
Businesses that use raw materials that are heavy and/or bulky choose to locate close to their suppliers to reduce the cost of transport or storage.
Recruitment
The process of hiring a new employee.
Recycling
The conversion of waste into reusable material.
Retailer
A business or person that sells goods to the consumer.
