Terms And Definitions Flashcards
Adding value
How a business sells a product for more than it costs through the processes they apply
Advertising
Promotional method where a business pays to place an advert in a form of media, such as newspaper or television
Aesthetics
The attractiveness of design of a product
Aims and objectives
The overall goals of a business or organization identifying what the business is trying to achieve
Application form
A method of applying for a job where the required details are decided by the business who is recruiting
Autonomy
The independence of worker has within their job
Average rate of return
The annual percentage profit that an investment makes compared to the cost of the payment
Bar gate stock control graph
A method of displaying data on stock levels which allows stock control policy to be decided, implemented, and reviewed within a business
Batch production
Method of production, where groups or types of products are made at several stages
Bonus
An extra amount of financial pay received through achieving a business target
Branding
What distinguishes a good or service from rivals
Break even
We’re total revenue is the same as total cost and no profit or losses made
Buffer stock
A quantity of stock, kept in store to safeguard against unforeseen, shortages or demands
Business
And organization set up to meet customer demand, and to make profit for its owners
Business environment
The external factors, such as the economy, and the law that influence how a business operates
Business plan
 A document produced by a new or existing business that shows what its objectives are, and how it will meet them
capacity
The maximum production output, a business going to achieve, with its existing resources
Capital
The initial money that is needed to start a business that is normally link to purchases of machinery and premises
Cash flow
The money that flows into and out of a business from sales and expenses
Cash flow forecast
The prediction of how much money will come into an out of a business over a future time period
Cash inflow
The money that comes into a business from sales and other sources
Cash outflow
The money, leaving a business that it spends on raw material labor, and other expenses
Centralized
 Where are business decision, making an implementation take place at & from the business headquarters
Chain of command
Part of the structure of a business organization, which shows who is in charge of who
Closing balance
 The total cash flow left at the end of a period
Commission
The extra amount of pay workers receive as a percentage of their or the business sales
Communication
How messages are past within a business or from a business to its customers
Competition
Other businesses that produce the same or similar goods or services
Competitive advantage
 A business that has a marketing mix, which enables it to be more successful than its competitors
Competitive environment
The number and strengths of other businesses in the same market
Competitive pricing
Where the price of a product is decided by comparing it to its rivals
Consumer
The person or business that use the good or service provided/produced
Consumer income
How much money consumers have to spend on their needs and wants
Consumer law
Legal constraints that protects consumers from unfair business practices
Consumer rights
Where consumers are protected by laws in terms of product quality, returning goods, repairs and replacement, digital content, and delivery
Consumer spending
The level of spending the consumers undertake related to their income
Cost plus
A pricing method, where a business decides what price to charge, based on only the cost of its production, and some extra to make profit
Crowdfunding
Finance raised through Internet appeals from a large number of small investors
Curriculum Vitea
A document summarizing the personal details, qualifications and experiences of an individual often used to apply for a job
Consumer engagement
Communicating with customers in a positive way
Customer feedback
Inquiries made after a seal to show how good a service or the sales process could be improved
Customer loyalty
Whether customers return to business on a regular basis to purchase more of the same goods, or other goods that they produce
Customer needs
 What an individual must have in order to survive
Customer satisfaction
How happy the customer is with the product or service that they have purchased
Customer service
How are business looks after its customers before during, and after they make a purchase
Customers
 The people who purchase a product or service from a business (not always the consumer)
Decentralized
A business structure and its decision making is spread out to include more junior managers, as well as individual business units or locations
De layering
A method of saving costs in an organization by reducing the numbers of layers
Demographics
Factors related to population often used as a basis for segmentation
Design mix
The use appearance and cost of a product
Differentiation
Who are the business makes its product different those of its competitors
Digital communication
Sending messages using mobile or Internet technology
Directors
People appointed by the shareholders to run the company on a day-to-day basis to make all the important decisions
Discrimination
When an employer chooses his workers, based on a particular characteristic, many of these are illegal, for example, age gender, and Reese
distribution
How are product gets from the producer to the consumer
Dividend
The share of profit received by a shareholder
E-commerce
Using the Internet to promote and sell a good or service
Economic climate
How a business is affected by economic variables, such as interest rates, or inflation in a country, or in other countries
Efficiency
Measures of how much output is being produced per unit of input
Employees
People who work within a business
Employment law
 Legal constraints that protect the employees of a business from unfair business practices
Employment level
The percentage employment rate in a country which will affect consumer spending in the availability of its employees
ENewsletter
A regular publication sent electronically to customers with items of interest, new products and promotions used to maintain regular contact with the customers
Enterprise
A business that has the objective of making profit
Entrepreneur
An individual who takes a calculated risk in starting or running a business in return for making a profit
Environmental considerations
The business takes into account consumers and producers concerns about the environment
E-tailer
I need a tonic retailer i.e. sells goods using the Internet
Ethical objectives
We are business is having a.m. what is morally right rather than necessarily the most profitable option
Excessive communication
When too much communication can lead to workers being ineffective or ineffective because of unnecessary work, acknowledging and responding to communications
Exchange rate
The amount of foreign currency that can be purchased with another currency
Exports
Goods or services that are produced in this country, and sold to other countries
Extension strategy
Methods of prolonging the product lifecycle to extend the life of a product
External finance
Sources of money from outside of a business
External growth
Growth which occurs by merging with or taking over another business
External influence
Factors that affect the business, but they cannot control
External recruitment
Where a business aims to find new workers from outside of current workforce
Finance
The money that is necessary to start and run a business
financial data
Information on the costs and revenues of a business, showing changes over time and used as the basis for calculations, and displaying to managers
 Financial objectives
Quantifiable targets for a business, including profit sales and costs
Fixed costs
Business costs that do not vary with output
Fixed premises
Where is business premises are located in the building ;the use has decreased with the rise of Internet, increasing home or teleworking
Flat structure
Where are the organizational structure has few layers, short, change of command, and wide spans of control
Flexible hours
Either the employee or the employer have some choices about the actual hours worked
Flow production
Method of production associated with making very large quantities of standard products
Focus group
In-depth market research where discussions take place with a group of potential of actual customers
Formal training
Specialist training for employees involving courses or offsite provision
Franchise
Where a business requires the right to use the name and products of another business
Franchisee
The business, which runs a franchise in a specific territory or area
Franchisor
The seller of a right to operate a franchise
Freelance contracts
Where are the employee is available to be hired on a daily basis or just for a specific job
Fringe benefits
Methods of rewardimg a worker that are not directly monetary
Full-time working
An employee who is employed for a whole week’s work
Function
A feature of product design, which shows that the product perform its intended job
Gap in the market
An opportunity for a business to provide a good or service that is not currently available
Globalization
The increased integration of trade, finance and communication between countries
Goods
Products, that businesses produce that have a physical presence
Gross profit
The difference between revenue and cost of sales. Calculated as gross profit equals total revenue minus cost of sales.
Gross profit margin
The percentage of profit made on sales, not taking into account the businesses expenses. Calculated as gross profit, divided by sales revenue times 100.
Growth
A business objective of increasing the amount of value or sales
health, and safety law
Legal constraints that protect the employees of a business from unsafe business practice
Hierarchical structure
Where is of organizational structure has many layers, long chains of command and narrow spans of control
Human resources
How are business recruits and manages its workforce
Imports
Goods or services that are produced in other countries and consumed in this country
Inflation
Where costs and prices in an economy are increasing
Informal training
Where employees learn how to do a job at the workplace by observing other employees
Innovation
The introduction of a new product or features on a product
Inorganic growth
Growth which occurs by merging with or taking over another business
Insolvency
Where a business runs out of cash, and is not able to obtain new finance
Interest rates
The percentage cost of borrowing money, or the reward for saving money
Internal finance
I wear a business obtains phones from its own sources, such as retained profits
Internal growth
Organic growth which takes place through a business selling more of its own products
Internal recruitment
Where a business eons to find new workers from within its current workforce
Internet
A means of connecting computer to computer to allow the transfer of information around the world
Investment
The purchase of new premises, or machinery, which can be used for growth, replacement or mechanization
Job analysis
A business, deciding whether it needs a worker, and what type if required
Job description
An explanation of the roles and responsibilities of a job
Job enrichment
Giving workers more responsibility or more complex and challenging tasks so they have a sense of achievement
Job production
Method of production where products are made individually
Job roles
What are the different types of jobs doing a business
Job rotation
Where are worker moved from one job to another job over a period of time
Just in time
Where inputs into the production process arrive on the production line as they are needed
Labor
The workers who are needed directly or indirectly to provide the good or service that a business requires
Lead time
The time between ordering a good or service and receiving it
Legal structure
What type of organization of business chooses to be such as a partnership or a company
Limited liability
The production enjoyed by shareholders, who can only lose the money they have put into the company
Loan
Source of finance for a business, where they receive a fixed amount of money for a specified time, which will need repayment with interest
Loan capital
 Sources of finance involving loans normally from banks, or other financial institutions
Local community
A business stakeholder, who will be affected by a business, is location in terms of direct and indirect employment opportunities
Location
The place where a firm decides to conduct its business
Logistics
The management of the flow of goods, information, and money along the supply chain
Loss
Where are the costs of a business or greater than its income?
Loss leader
We have business prices, a good at least did it cost to encourage customers to buy other goods at the same time
Management
How to successfully ensure that employees work efficiently
Margin of safety
The additional output that a business produces or expects to produce more than its break even output
Market conditions
The current situation in the economy, and whether it is improving or worsening
Market data
Quantitive information, such as sales figures overtime for the market of a product or service
Market map 
A diagram representing different businesses in the market that are compared to two variables, such as price and quantity it is used to identify a gap in the market
Market research
 Information from existing and potential consumers about their reaction to a good or service
Market share
The percentage of total sales, a firms particular good or service has
Marketing
Providing the goods and services that consumers require, whislt making a profit
The marketing mix
The ingredients needed to produce a marketing policy, normally known as the four Ps. They are product price, place and promotion.
Marketing segments
A way of dividing up the market in two different groups of potential customers
 Material
The inputs needed for the production of a good or a service
Merger
Where 2nbusinesses of equal size are joined together
Motivation
The desire of an employee to do a job well
Multinational
A business that produce goods in more than one country
Needs
What an individual must have in order to survive
Net cash flow
The difference between the cash inflows, and the cash outflows for a business in a time period
Net profit
The total amount of money made from the trading activities of the business calculated as net profit equals gross profit, minus other operating expenses, and interest
Net profit margin
The percentage profit made after all costs and expenses have been deducted. Calculated as = net profit/sales revenue X 100.
Non-financial objectives
Business targets that involve areas such as improving quality in being more ethical
Observation
A method of market research or direct data is gathered from customer actions
Obsolete
 What a type of product is no longer produce because it is not needed or has been replaced
Opening balance
The total cash flow available at the start of a period
Operational staff
 Employees who directly do the work such as the manufacturing or providing the service?
Organic growth
Growth which occurs as a business sells more of its own products
Organizational structure
The way employees are arranged into a formal structure for control and communication
Output
The total quantity produced by a business employee or machine over a given period of time
Overdraft
Source of finance for a business, where it is allowed to take more money out of its account than it has deposited
Overheads
C costs or expenses, that a business incurs
Partnership
 Where a business is started, and owned by more than one person, who then share the profits and the responsibilities
Part time working
 Where in employee is employed for less than a whole weeks work
Payment system
 The use of digital technology by a business, stupid suppliers and employees
Performance review
A process of staff development looking back at how well employee is doing their job. Often linked to identifying future training needs and bonuses.
Permanent contract
A job where in employee will continue working for an indefinite. Period.
Person specifications
 The qualifications skills experience and personal attributes needed for a job
Personal savings
The difference between an individuals income, and their spending
Place
How a product or service is distributed to the customer
Post sales service
Following up with a customer after they have made a person to check that everything is OK
Pressure group
A collection of individuals who have a common cause in campaign to achieve it
Price
The amount of money, a customer would need an order to buy a good or service
Pricing strategy
A policy that a business decides to calculate the price at which it chooses to sell its new or existing products
Primary research
First-hand information gathered by a business about existing and potential consumers
Private, limited company
The most common kind of limited company in the UK, where is shares, can only be sold to family and friends
Procurement
The process of choosing a supplier
Product life cycle
The stages in the life of a product from when it is first thought of until it is finally removed from the market
Product range
 The amount of different types of goods or services, that a business chooses to produce
Product trial
A free or reduced price product given as a sample with the hope that consumers will continue to buy the product in the future
Production
The process which involves taking inputs, and transforming them into outputs
Productivity
The amount of output per unit of input, i.e. labor, equipment, and capital
Profit
The difference between costs and revenue
Promotion
Methods of making a consumer aware of a product and persuading them to buy. It includes advertising, sales, promotion, and public relations.
Promotion (Human Resources)
Where in employee moves job to a more senior position
Public limited company
The kind of limited company who shares can be bought on the recognized stock exchange
Public relations
An approach to promoting a business focused on producing a positive image using media and other indirect methods
qualitative data
Results of research that is based on opinions, attitudes, and beliefs
Quality
What are the products of a standard that meets a customers requirements
I quality assurance
Setting of processes in production, to ensure that quality is achieved
Quality control
Checking that, the product produced by a business or of the required standard at the end of the production process
Quality assurance
Starting a processes in production, to ensure that quality is achieved
Quality control
Checking that the products produced by a business or of the required standard at the end of the production process
Quantitative data
Results of market research that is normally numerical
Questionnaire
A method of gaining market research data through asking the opinions of potential customers
Raw materials
The inputs to get it off for the production of a good or service
Recruitment
The process of business undertakes to attract new or replacement workers
Reliability
Whether a supplier will always deliver at the agreed time
Remote working
We employees can be working normally at home away from their businesses location being linked through the Internet
Remuneration
The package of pay in other words provided to an employee
Research and development
 costs that are required and getting a new product ready to launch into a market
Retailer
The final part of the distribution process where the product is sold to the consumer
Retained profit
A source of finance, based on money that a business keeps back after paying shareholders a dividend, and giving owners their share of the profits
Retention
How well a business keeps the staff that it employes
Revenue
The income from seals. Price X quantity sold.
Reward
What’s an entrepreneur receives financial or nonfinancial as the return for the risks that are takeN
Risk
The possibility that a business may not be successful
Roles and responsibilities
The details about a job, and what involves
Sales process
A series of activities are designed to engage customers to complete a sale
Sales promotion
Point of sale methods that persuade customers to buy a product
Secondary research
Information that has already been collected by other businesses or organizations about existing or potential customers
Segmentation
Oway of dividing up the market, different groups of potential customers
Self learning
A method of training and development, where the employee works through a guided program of information and activities
Selling assets
When a business says it’s land, buildings, machinery, or equipment that are no longer needed to raise an additional finance
Service
Activities that are provided by business for customers that are not tangible
Share capital
The money raised by a business from the sale of shares
Share issue
When a company raises finance through selling shares to new or existing shareholders
Shareholder
An owner of a company who receives a dividend as a return for their investment
Shares
Where investor on the part of a private or public company
Social media
Internet sites such as Facebook and Twitter that allow individuals to interact through messages in updating
Social objectives
Business objectives, such as being ethical, or environmentally friendly
Sole trader
Where business is started, and owned by one person who keeps all the profits, but hold all the responsibility
Sources of finance
Options are a business has if it needs additional finance to start run or expand its business
Span of control
The number of employees who are manager directly controls
Special offers
Temporary deals to encourage customers to try a new product or a relaunched product
Sponsorship
A type of public relations where a business aims to improve brand awareness through, making donations to individuals and organizations
Stakeholder
 An individual or group that is directly or indirectly affected by the actions of a business
Stock market flotation
When a company raises finance through selling shares to new or existing shareholders
Supervisor
An employee with responsibilities for the work produced by number of workers
Supplier
A business that provides raw materials components, finish goods or services in exchange for payment
Supply chain
All activities that are involved in getting a good or service to the customer
support staff
Employees were called onto assistant, any area of the organization by providing additional labor or specialist skills
Survey
A method of market research with customers and potential customers are asked for their opinions
Survival
A business objective we’re continuing in existence, becomes a short term goal
Sustainability
To ensure that production in economy can continue at the same level in the future
Take over
Where is business acquires another business?
Target market
We’re customers are segmented to allow business is to focus its marketing policy on meeting there specific requirements
Target setting
An employee process linked to performance reviews that sets goals and identifies training needs
Tariff
A tax on imports that increases their price and allows home business is an advantage
Taxation
How are the government collects money to fund its expenditure program and influence the economy?
Team leader
An employee with responsibilities for the work produced by a group of workers
Technology
How businesses use machines and devices to improve their operation
Temporary contract
A job where I worker will be employed for a fixed period of time
Total costs.
All the costs of a business. Calculated as . Total costs = fixed costs + variable costs.
Trade bloc
A group of countries that have free trade within the group that made restrict imports from countries outside the trade bloc
Trade credit
When a business orders and receive supplies, but paid for them at a later date
Training
How employees learn to do a job
Unemployment
Where people are able available and willing to work at the going wage, but cannot find a job
Unique selling point USP
What makes a businessis goods or services different from its competitors?
Unit cost
The average cost of making one unit or item
Unlimited liability
If a business becomes bankrupt, soul, traders and partners are personally liable for their business debts
Variable cost
 Business costs that change with output, such as raw materials
Venture capital
A source of finance normally, for small businesses, with good growth, prospects where the venture capitalist normally takes a stake in the business
Viral advertising
When advert is spread to social media by people, spreading the message through forwarding to their friends and contacts
Wants
What does individual would like, but does not need to survive
