Unit 1 Terms Flashcards
Profit
A business makes a profit when the income earned (revenue) is greater than the cost of production (expenses)
Business
A business is an organisation that provides goods and/or services to consumers in order to make a profit
Objective
States what an organisation expects to achieve over a set period.
Internal environment
Sometimes called the micro environment, includes those factors over which the business has some degree of control
External environment
Includes those factors over which the business has little control over which the business has some degree of control. It may further divide into two categories: operating and macro
Corporate culture
A set of mostly unwritten or informal rules that spell our how people are to behave most of the time
Operating environments
Sometimes called the task environment; refers to the specific outside stakeholders with whom the business interacts in conducting its business
Stakeholder
A stakeholder is any group or individual who has an interest in, or its affected by the actions of a business
Interest groups
Karl the groups of people who attempt to directly influence or persuade an organisation to adopt particular policies
Macro environment
Made up of the broad conditions and trends in the economy and society within which a business operates.
Tariff
A tax imposed on imported goods, usually to protect locally produced suppliers of similar items
Business ethics
The application of moral standards to business behaviour
Socially responsible management
Managing an organisation in such a way that the boarder social welfare of the community is taken into consideration when making business decisions
Goodwill
Monetary value attached to the reputation of a particular business
Franchise
Buying the rights from another business to distribute its products under its name
Asset
Any item of value owned by the business
Operating costs
Include those costs involved in the ordinary day to day running of the business
Triple bottom line
The Economic, environmental and social performance of a business
Performance indicators
Measurable statements birch businesses use to evaluate performance
Financial indicators
Found in accounting records and are expressed in dollar terms
Non financial indicators
Are commonly expressed in real terms and often makes use of qualitative data
Profitability
Measures the earning performance of the business and indicates the businesses ability to maximise profits
Liabilities
Items of debt that the business owns
Human resource management
The effective management of the formal relationship between the employer and employee
Recruitment
Process of attracting qualified job applications by us using advertisements, websites, employment agencies and word of mouth
The most appropriate person will be selected from this
Internal recruitment
Filling job vacancies with present employees, rather than looking outside of the business
External recruitment
Involves filling job vacancies with people from outside the business
Employee selection
Involves gathering information about each applicant for a position, then selecting from that info
Permanent employees
Have an employment contract of indefinite duration
Fixed term employees
Employed on a contract for a specific period
Casual employees
Have contracts with employers for short term
Affirmative action
Refers to measure taken to eliminate discrimination in the workplace.
Profit organisation
A for profit organisation that has sales income that is greater than the costs of production with the ultimate aim of providing a return to its owners
Objective
States what an organisation expects to achieve over a set period of time, it is a specific goal for the business
