Business Key Words

HideShow resource information
land
all the natural resources provided by nature and includes fields and forests, oil, gas, metals and other mineral resources
1 of 110
labour
this is the number of people available to make products
2 of 110
capital
this is the finance, machinery and equipment needed for the manufacture of goods
3 of 110
enterprise
this is the skill and risk taking ability of the person who brings other resources or factors of production together to produce a good or service
4 of 110
need
good or service essential for living
5 of 110
want
good or service which is not essential for living
6 of 110
economic problem
there exists unlimited wants but limited resources to produce the goods and services to satisfy those wants. this creates scarcity
7 of 110
scarcity
the lack of sufficient products to fulfil the total wants of the populations
8 of 110
opportunity cost
the next best alternative given up by choosing another item
9 of 110
specialisation
occurs when people and businesses concentrate of what they are best at`
10 of 110
division of labour
when the production process is split up into different tasks and each worker performs one of those tasks
11 of 110
businesses
they combine factors of production to make products which satisfy people's wants
12 of 110
added value
the difference between the selling price of a product and the cost of bought materials and components
13 of 110
primary sector
the industry that extracts and uses the natural resources to provide raw materials to be used by other businesses
14 of 110
secondary sector
the industry that manufactures the goods using the raw materials provided by the primary sector
15 of 110
tertiary sector
the industry that provides services to consumers and other sectors of industry
16 of 110
de-industrialisation
occurs when there is a decline of importance of the secondary, manufacturing sector of industry in a country
17 of 110
mixed economy
has both a private and public sector
18 of 110
private sector
businesses not owned by the government
19 of 110
public sectors
government or state owned businesses
20 of 110
capital
the money invested into a business by the owners
21 of 110
entrepreneur
a person who organises, operates, and rakes risks for a new business venture
22 of 110
business plan
a document containing the business objectives and important detains about the operations, finance, and owners of the business
23 of 110
capital employed
the total value of capital used in a business
24 of 110
internal growth
occurs when a business expands its existing operation
25 of 110
external growth
when a business takes over or merges with another business
26 of 110
integration
when one firm in integrated into another
27 of 110
merger
when two owners of separate businesses agree to join their firms together to make one business
28 of 110
takeover/aquisition
when one business buys out the owners of another business which then becomes part of the 'predator business'
29 of 110
horizontal integration
when one firm merges with or takes over another one in the same industry in the same stage of production
30 of 110
vertical integration
when one firm merges or takes over another firm in the same industry but at a different stage of production
31 of 110
conglomerate integration/diversification
when one firm merges with or takes over another business in a completely different industry
32 of 110
sole trader
a business owned by one person
33 of 110
partnership
a form of business in which 2-20 people agree to jointly own a business
34 of 110
partnership agreement
the written and legal agreement between business partners
35 of 110
limited liability
means that the liability of the shareholders in a company is only limited to the amount they invested
36 of 110
unlimited liability
means that the owners of the business can be held responsible for the debts of the business they own
37 of 110
unincorporated business
one that does not have a separate legal identity to the owner
38 of 110
incorporated business
one that has a separate legal identity to the owner
39 of 110
shareholders
the owners of a limited company
40 of 110
annual general meeting
a legal requirement for all companies
41 of 110
dividends
the payments made to the shareholders from the profits of a company
42 of 110
franchise
a business based upon the use of brand names, promotional logos and trading methods of an existing successful business
43 of 110
franchisor
the person owning the franchise
44 of 110
franchisee
the person buying the franchise from the franchisor
45 of 110
business objectives
the aims or targets that a business works towards
46 of 110
profit
a total income of business (sales revenue) less total costs
47 of 110
market share
the proportion of total market sales achieved by one business
48 of 110
social enterprise
a business has social objectives as well as an aim to make a profit to reinvest back into the business
49 of 110
stakeholder
any person or group with a direct interest in the performance and activities of a business
50 of 110
SECTION 2
SECTION 2
51 of 110
motivation
the reason why employees want to work hard and work effectively for the business
52 of 110
wage
payment for work, usually paid for weekly
53 of 110
salary
payment for work, usually monthly
54 of 110
commission
payment relating to the number of sales made
55 of 110
profit sharing
a system whereby a proportion of the companies profits are paid out to employees
56 of 110
bonus
an additional amount of payment given as a reward
57 of 110
performance-related pay
pay which related to the efficiency and effectiveness of an employee where their output can be easily measured
58 of 110
share ownership
where shares of the company are given to the employees so that they become part owners in the company
59 of 110
appraisal
a method of assessing the effectiveness of an employee
60 of 110
fringe benefits
non-financial rewards given to employees
61 of 110
job satisfaction
the enjoyment derived from the feeling that you have done a good job
62 of 110
job rotation
involves workers swapping around and doing each specific task for a limited time then changing again
63 of 110
job enlargement
where extra tasks of a similar level are added to a workers job description
64 of 110
job enrichment
involves looking at jobs and adding tasks that require more skill and/or responsibility
65 of 110
chain of command
the structure in an organisation which allows instructions to be passed down from senior management to lower levels
66 of 110
span of control
the number of subordinates working directly under a manager
67 of 110
line managers
they have direct responsibility over the people below them in the hierarchy of an organisation
68 of 110
staff managers
specialists who provide support, information and assistance to line managers
69 of 110
delegation
giving a subordinate the authority to perform particular tasks
70 of 110
leadership styles
the different approaches to dealing with people when in a position of authority
71 of 110
autocratic leadership
where the manager expects to be in charge of the business and to have their orders followed
72 of 110
democratic leadership
gets other employees involved in the decision making process
73 of 110
laissez-faire leadership
makes the broad objectives of the business known to employees but then they are left to make their own decisions and organise their own work
74 of 110
trade union
a group of workers who have joined together to ensure their interests are protected
75 of 110
closed shop
all employees must be a member of the same trade union
76 of 110
recruitment
the process from identifying that the business needs to employ someone up to the point at which applications have arrived at the business
77 of 110
job analysis
identifies and records the responsibilities and tasks relating to a job
78 of 110
job descriptions
outlines the responsibilities and duties to be carried out by someone employed to do a specific job
79 of 110
job specification
a document which outlines the requirements, qualifications, expertise, physical characteristics, etc, for a specified job
80 of 110
internal recruitment
when a vacancy is filled by someone who is an existing employee of the business
81 of 110
external recruitment
when a vacancy is filled by someone who is not an existing member of the company
82 of 110
part-time
considered to be between 1-35 hours per week
83 of 110
full-time
employees will usually work 35 hours per week or more
84 of 110
induction training
and introduction given to a new employee, explaining the firm's activities customs and procedures and introducing them to their fellow workers
85 of 110
on-the-job training
occurs by watching a more experienced worker perform the job
86 of 110
off-the-job training
involves being trained away from the workplace, usually by specialist trainers
87 of 110
workforce planning
establishing the workforce needed by the business
88 of 110
redundancy
when an employee is no longer needed
89 of 110
ethical decision
a decision taken by a manager or a company because of the moral code observed by the firm
90 of 110
industrial tribunal
a legal meeting which considers workers complaints of unfair dismissal or discrimination at work
91 of 110
contract of employment
a legal agreement between employer and employee listing the rights and responsibilities of worker
92 of 110
communication
the transferring of a message from the sender to the receiver, who understands the message
93 of 110
message
the information or instructions being passed from the sender to the reciever
94 of 110
internal communication
communication between members of the same organisation
95 of 110
external communication
communication between two or more organisations or individuals
96 of 110
transmitter/sender
the person starting off the process by sending the message
97 of 110
medium of communication
the medium used to send a message
98 of 110
receiver
the person who receives of the message
99 of 110
feedback
the reply from the receiver which shows whether the message has arrives, been understood, and if necessary, acted upon
100 of 110
one-way communication
a message which does not require a reply
101 of 110
two-way communication
a message which requires a reply
102 of 110
formal communication
messages sent using professional language
103 of 110
informal communication
when information is sent and received casually
104 of 110
communication barriers
factors that stop effective communication
105 of 110
SECTION 3
SECTION 3
106 of 110
market share
the percentage of total market shares held by one brand or business
107 of 110
mass market
where there is a large number of sales for a product
108 of 110
niche market
a small, specialised segment of a much larger market
109 of 110
market segments
an identifiable sub-group of a whole market in which consumers have similar characteristics or preferences
110 of 110

Other cards in this set

Card 2

Front

this is the number of people available to make products

Back

labour

Card 3

Front

this is the finance, machinery and equipment needed for the manufacture of goods

Back

Preview of the back of card 3

Card 4

Front

this is the skill and risk taking ability of the person who brings other resources or factors of production together to produce a good or service

Back

Preview of the back of card 4

Card 5

Front

good or service essential for living

Back

Preview of the back of card 5
View more cards

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all everything resources »