business key definitions

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Ansoffs Matrix
Shoes strategies that a firm can use to expand according to how risky they are
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Asset
Anything a business owns
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Barrier to entry
An obstacle that makes it harder for companies to enter a market
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Blake mountain grid
a grid used to define managers according to how much they care about employees and about production
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Boston Matrix
a matrix that compares a firms products based on their market growth and market share
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Budget
Forecasts future earnings and future spending
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capital
a companies wealth in the form of money or other assets
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capital expenditure
also called fixed capital
money used to buy fixed assets
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cash flow
money that moves in and out of a business over a set period of time
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centralisation
a way to structure a business where all decisions come from a few key people
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channel of distribution
the route a product takes from the producer to the consumer
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contingency plan
a plan preparing for an event that's unlikely to happen just in case it does
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core competence
a unique feature of a business that gives it a competitive advantage
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cost-push inflation
when rising costs push up prices ei raw materials
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creditor
someone who a business owes money to
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debt capital
the capital raised by borrowing
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debtor
someone who owes money to a business
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decentralisation
a way to structure a business where decisions are shared across the company
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demand pull inflation
when a rise in disposable income means there is to much demand for too few goods leading to a business increasing prices
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demographic change
a change in structure of a population
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depreciation
loss of value over time
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developed country
a relatively rich country with high GPD
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developing country
a relatively poor country with a low GPD
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diversification
selling new products to new markets
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economic growth
the rate of increase in GDP
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economies of scale
when the cost of producing each item decreases as the scale of production increases
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economies of scope
when a single company can make two or more products more cheaply than they can be made by separate companies
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Elkington's triple bottom line
a model that asses performance which considers profit, people and planet
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embargo
a ban on trade with particular countries
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equity capital
the capital raised raised by selling shares
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fixed asset
an asset that a business keeps long term or uses repeatedly ei equipment
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flat structure
organisational structure that has few layers of management
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forecasting
trying to predict what will happen in the future
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franchising
an agreement which allows one business to use the name, knowledge and process of an established business
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Gross domestic product (GPD)
the total market value of goods and services produced within a nation or a period of time
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human resource management
looks after all the people related aspects off a business like recruitment and training
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income statement
statement showing how much moneys gone in and out of a company over a period of time
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inflation
an increase in the price of goods and services
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infrastructure
basic facilities like railways, roads and powerlines
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innovation
coming up with new ideas, products and processes
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insolvent
unable to pay debts
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just in time production
manufacturing process that operates with very small amounts of stock
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Kaizen
a lean production method that involves encouraging everyone to constantly improve quality
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Kanaban
the system used in JIT production that triggers repeat orders
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Labour retention
the proportion of staff that stay that stay at a company for a given period
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lean production
techniques that aim to reduce waste to an absolute minimum
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liability
a debt business a business owes
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market penetration
trying to increase market share in existing product
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market share
the percentage of sales in a market made by one firm or brand
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merger
where two companies agree to join together into one business
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migration
the movement of people from one place to another
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mission statement
written description of a company's corporate aims
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monetary policy
the governments method of controlling inflation, exchange rates and the economy by adjusting interest rates
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monopoly
when a business has complete control over the market. lack of competition can lead to high prices and low quality
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multinational
a business with its head quarters in one country and bases in other countries
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net realisable value
the amount a company could get by selling its stock in its current state
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offshoring
when a firm has one or several of its activities carried out abroad
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opportunity cost
idea that money or time spent doing one thing means missing out on doing something else
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Other cards in this set

Card 2

Front

Anything a business owns

Back

Asset

Card 3

Front

An obstacle that makes it harder for companies to enter a market

Back

Preview of the back of card 3

Card 4

Front

a grid used to define managers according to how much they care about employees and about production

Back

Preview of the back of card 4

Card 5

Front

a matrix that compares a firms products based on their market growth and market share

Back

Preview of the back of card 5
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