Business A292


Chain of Production

Process of a preoduct starting as raw materials, manfatured in secondary prdoction and then serviced in some way in teriary sector.

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Primary Sector

First stage of production involving the extraction of raw materials and natural resources.

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Secondary Sector

Second stage of production, where the raw materials are manufactured into finished production.

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Tertiary Sector

Third stage of Production, where a service is provided for customers, or a product is sold.

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The way different sectors depend on each other.

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Where a business concetractes on one particular activity.

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Added Value

A business increases value of a product- for example making a car from metal.

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Reduction of importance of the secondary sector in a country.

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What a business is trying to achieve. Examples include profit, growth, survival and providing a service.

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Mission Statement

A breif statement of the main objectives a business or organisation has.

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Means that a business will make enough profit to enale it to meet needs, not make as much profit as posible.

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Payment to shareholder from profits of PLC or Ltd.

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Private sector

Business activity owned by private induvisiuals, including sole traders, partnerships, Ltd and PLCs.

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Public sector

Business activity controlled by gevernment, such as NHS, fire service.

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Groups with an interest in a business.

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Trading qrganisations where a number of idividuals work together and trade as though they are a single larger business.

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Sole Proprietor

Own person owns the business with unlimited liability.

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A form of unincorporated business which is owned by more than one person. It usually has unlimited liability.

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Unlimited Liability

Owners of the business are liable for its debt.

If the business fails or goes bust then personal possessions are at risk.

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Private Limited Company

A business owned by shareholders that are invited to buy a share. Normally identified by Ltd or limited in its name.

Have Limited Liability.

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Public Limited Company

A business owned by shareholders. Shares can be bought and sold without restriction. Normally identified as PLC.

Have Limited Liability, Shares are sold to anyone on the Stock exchange.

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Limited Liability

Owners of a business do not risk personal possessions and only lose money invested in the business if it fails or goes bust.

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A person who sees a business opportunity and who accepts the risks involved in running a business.

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Two or more businesses join/merge together to make one larger business.

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One business buys control over another business, by buying enough shares in the business.

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Horizontal Merger

Merger or takeover with two businesses involved in the same industry / at the same stage of production.

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Horizontal Merger

Merger or takeover with two businesses involved in the same industry / at the same stage of production.

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Horizontal Merger

Merger or takeover with two businesses involved in the same industry / at the same stage of production.

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Vertical Merger

Merger or take-over with two businesses in the same industry at a different stge of production.

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Process of spreading risks by reducing dependence on one paricular product or service. Beginning a business in other sector or idustry.

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Silent or Sleeping Partner

A person who has invested in a business but who does not take a active part in the running of the business.

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Deed of Partnership

A legal agreement drawn up by partners to state responsibilites of partners- ie. Liability and share of profits.

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Limited Liability Partnership

A new form of ownership which trades as a partnership but with limited liability.

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Process of becoming a limited company with Limited liability.

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Money usually raised though the sale of shares to investors.

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Marketing agreement that allows another business to trade with the same name and brand- use the same products.

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Payment made to franchisor for running a franchise.

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Worldwide interdependence of business activity.

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Multinational Company

A company with facilities in several differnet countries.

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Process of choosing between applicants for a job.

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Personal/ HR department

Department in a business that deals with recruitment, selection, pay, training and other employment matters.

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Needs analysis

How an organisation decides how many staff to employ.

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Joy desccribtion

This lists the main duties or tasks of a worker, and the wage/pay.

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Person Specification

Lists the qualities, qualifications and knowledge/ experience that the person should have in order to do the particular job/ the job they are appling for.

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Internal Recruitment

When the person who is employed already works within the business so just gets another job in another section.

It is good as the know the business and business objectives already.

However the business may need new ideas, and this would not bring new ideas to the business.

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When the person employed is from outside of the business.

New ideas

but they don't know the business and need iduction training.

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Maslows Hierarchy of needs

A theory that can used to explain what motivated workers.

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Encrouagement given to workers to work hard and to work well.

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Mearsures how much a worker can produce.

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Gross pay

Pay BEFORE any deductions.

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Net pay

Pay AFTER deductions.

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Non pay Motivators

Methods of motivating workers that do not involve the payment of money as a reward.

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Induction Training

Special training to introduce new workeers to a workplace and other workers.

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On-the-job training

Training that occurs at the place of work and while the trainer is working.

Can pik up bad habits, cheaper.

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Off-the-job training

Training that occurs when worker is not working, often sent somewhere else or specialist come to workplace.

Proffessional advice, but the individual business may do it differently.

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When a line manager assesses the work of somebody they are responsible for, they may discuss target from the last time and for the future.

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Performance related pay

Any way of paying workers that reward them for how much they produce or how well/ hard they work.

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Investors in people

A scheme by which the quality of staff training and development in a business can be recognised by an outside organisation.

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Employment Tribunal

A special court of law that deals with disputes between workers and employers.

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When employment is ended because the firm no longer needs the work that was done by an employee.

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Trade Unions

Organisations that represents the interests of workers.

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Pressure groups

An organisation that tries to influence the government (govt) to pass laws in its favours and businesses to make positive decisions.

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Industrial action

Actions taken by workers to put pressure on employers to give in to their demands.

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Transmission of a message from a sender to a receiver.

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Organisation chart

A diagram that shows how workers are organised in a business and who is in charge of who.

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Chain of Command

Link in the levels of authority from those at the top to those at the bottom.

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Line Manager

This is a person who is directly responsible for other workers in the organisation.

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Workers that a line manager is responsible for.

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Span of Control

Number of subordinates who report directly to a manager.

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Formal communication

Communications that use offical channels of communication within an organisation, such as a meeting.

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Informal Communication

Communications that are outside the official channels of communtication within a business, such as to chat in the pub.

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Process of giving a manager authority to a subrodiate to make decisions for which that manager is responsible.

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Lateral integration

A merger of businesses of a 'similar2product that are sold to the same target market, such as a chocolate and crisp manufacturer.

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