Subject specific vocabulary Flashcards
Advertising
A method of communicating information about the product; the business pays for advertising time/space.
Aim
The intention to reach a goal.
Air pollution
The presence or introduction of harmful substances into the air causing disease, allergies or damage to humans, animals, plants or the built environment.
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 / intial x 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.
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 too 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 finanafe may be needed to maintain liquidity.
Cash inflow
Money recieved by the business to fund its operations or investment activities.
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 distribution
The route the ownership of the product transfers from the seller to the buyer; it may be a single transcation 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.
Commission
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.
Cost-plus pricing
Setting the price of a good or service at an amoung higher than the cost of producing it so that a profit is made.
Decentralisation
Where authority is spread widely through the organisation.
Delayering
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.
Diseconomies of scale
When a business grows too large, leading to a possible increase in unit cost.
Disposal 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.
Enterprise
The ability to identify busines ideas and oppurtunities 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 the resources and risks.
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.
Factors of production
The elements that combine in the production process: land, labour, capital and enterprise.
