Unit 3 Defintions

Question 1

Controlling

Answer 1

Measures how well an organization achieves the objectives it sets out

Question 2

Bad debts

Answer 2

When a debtor is unable to repay the money they owe to a business

Question 3

Credit control

Answer 3

Ensures that customers who buy goods on credit pay their bills in full on time

Question 4

Quality circles

Answer 4

Groups of different staff involved in the production process who meet to discuss and address issues

Question 5

Stock control

Answer 5

Is a management activity which aims to keep optimum levels of stock in a business

Question 6

Financial control

Answer 6

Ensures the business is liquid and profitable

Question 7

Planning

Answer 7

Involves a business setting specific goals and objectives and then outlines strategies that allows them to achieve them

Question 8

Mission statement

Answer 8

Is a visionary statement outlining who the business is what they do and where their business is going

Question 9

Strategic plan

Answer 9

Breaks down the mission statement into long term plans

Question 10

Tactical plan

Answer 10

They are based on the strategic plan that are short term aiding the development of the strategic plan

Question 11

Contingency plan

Answer 11

Back up plan to deal with unforeseen circumstances and emergencies

Question 12

Operational
Plan

Answer 12

Plans for the day to day running of the business

Question 13

Organising

Answer 13

Arranging the rescues a business has into an organised structure in order to achieve objectives

Question 14

Span of control

Answer 14

Is the number of subordinates that directly reports to one manger in a hierarchy

Question 15

Communication

Answer 15

Involves transferring information from one person to another. The information is sent through a medium such as email or telephone to the reviver who must interpret and act upon message

Question 16

Chain of command

Answer 16

Is the line of communication in a business. It is the path on which orders flow from the top to the bottom of the business. It is also the channel for which feedback is communicated

Question 17

A memo

Answer 17

Is a written document used for internal communication. It is a brief note from one person to another in a business

Question 18

AGM annual general meeting

Answer 18

A mandatory yearly gathering of a company’s shareholders and directors. Shareholders can vote on current issues and the directors will provide info on performance over the last 12 months

Question 19

EGM extraordinary general meeting

Answer 19

Used so that shareholders of the company can formally discuss and vote on an urgent matter for the business that cannot wait until the next AGM

Question 20

Ad hoc meeting

Answer 20

Is a one off meeting that is not planned. They are held if an issue suddenly arises.

Question 21

Board meetings

Answer 21

The board of directors meet regularly eg every month to discusss any issues in the business. They are focused on the strategic plan and the direction of the business

Question 22

General meeting

Answer 22

A business holds regular meetings during which different shareholders discuss any issues they feel the business is facing

Question 23

Leading

Answer 23

A management skill which encourages people to work towards a specific goal

Question 24

Delegation

Answer 24

Is a superior assigning work, power and authority to a subordinate. It is generally assigned by a manger to a subordinate then the subordinate also becomes responsible for the task

Question 25

Democratic leadership

Answer 25

Is where the leader seeks employee input in decision making. Employees are valued leading to higher motivation

Question 26

Laissez faire leadership

Answer 26

It is a style which places a lot of trust on subordinates. The targets are set and the subordinates are trusted to decide the best ways to achieve the goal. The manger facilities a hands off approach. Usually works for skilled workers

Question 27

Autocratic leadership

Answer 27

Is where the leader makes all the decisions. The do not seek employee input or trust them. An element of fear is often used as a motivator for these leaders

Question 28

Motivation

Answer 28

A manger energises and inspires employees towards the goals

Question 29

Entrepreneur

Answer 29

Is somebody who is enterprising and starts their own business. They spot a gap in the market and risk their time and money in the hope of making a profit

Question 30

Intrapreneur

Answer 30

Comes up with new ideas within the business they are employed