Business Key Words

all the natural resources provided by nature and includes fields and forests, oil, gas, metals and other mineral resources
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this is the number of people available to make products
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this is the finance, machinery and equipment needed for the manufacture of goods
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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
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good or service essential for living
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good or service which is not essential for living
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economic problem
there exists unlimited wants but limited resources to produce the goods and services to satisfy those wants. this creates scarcity
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the lack of sufficient products to fulfil the total wants of the populations
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opportunity cost
the next best alternative given up by choosing another item
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occurs when people and businesses concentrate of what they are best at`
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division of labour
when the production process is split up into different tasks and each worker performs one of those tasks
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they combine factors of production to make products which satisfy people's wants
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added value
the difference between the selling price of a product and the cost of bought materials and components
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primary sector
the industry that extracts and uses the natural resources to provide raw materials to be used by other businesses
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secondary sector
the industry that manufactures the goods using the raw materials provided by the primary sector
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tertiary sector
the industry that provides services to consumers and other sectors of industry
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occurs when there is a decline of importance of the secondary, manufacturing sector of industry in a country
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mixed economy
has both a private and public sector
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private sector
businesses not owned by the government
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public sectors
government or state owned businesses
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the money invested into a business by the owners
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a person who organises, operates, and rakes risks for a new business venture
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business plan
a document containing the business objectives and important detains about the operations, finance, and owners of the business
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capital employed
the total value of capital used in a business
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internal growth
occurs when a business expands its existing operation
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external growth
when a business takes over or merges with another business
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when one firm in integrated into another
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when two owners of separate businesses agree to join their firms together to make one business
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when one business buys out the owners of another business which then becomes part of the 'predator business'
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horizontal integration
when one firm merges with or takes over another one in the same industry in the same stage of production
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vertical integration
when one firm merges or takes over another firm in the same industry but at a different stage of production
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conglomerate integration/diversification
when one firm merges with or takes over another business in a completely different industry
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sole trader
a business owned by one person
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a form of business in which 2-20 people agree to jointly own a business
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partnership agreement
the written and legal agreement between business partners
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limited liability
means that the liability of the shareholders in a company is only limited to the amount they invested
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unlimited liability
means that the owners of the business can be held responsible for the debts of the business they own
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unincorporated business
one that does not have a separate legal identity to the owner
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incorporated business
one that has a separate legal identity to the owner
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the owners of a limited company
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annual general meeting
a legal requirement for all companies
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the payments made to the shareholders from the profits of a company
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a business based upon the use of brand names, promotional logos and trading methods of an existing successful business
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the person owning the franchise
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the person buying the franchise from the franchisor
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business objectives
the aims or targets that a business works towards
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a total income of business (sales revenue) less total costs
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market share
the proportion of total market sales achieved by one business
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social enterprise
a business has social objectives as well as an aim to make a profit to reinvest back into the business
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any person or group with a direct interest in the performance and activities of a business
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the reason why employees want to work hard and work effectively for the business
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payment for work, usually paid for weekly
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payment for work, usually monthly
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payment relating to the number of sales made
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profit sharing
a system whereby a proportion of the companies profits are paid out to employees
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an additional amount of payment given as a reward
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performance-related pay
pay which related to the efficiency and effectiveness of an employee where their output can be easily measured
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share ownership
where shares of the company are given to the employees so that they become part owners in the company
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a method of assessing the effectiveness of an employee
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fringe benefits
non-financial rewards given to employees
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job satisfaction
the enjoyment derived from the feeling that you have done a good job
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job rotation
involves workers swapping around and doing each specific task for a limited time then changing again
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job enlargement
where extra tasks of a similar level are added to a workers job description
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job enrichment
involves looking at jobs and adding tasks that require more skill and/or responsibility
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chain of command
the structure in an organisation which allows instructions to be passed down from senior management to lower levels
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span of control
the number of subordinates working directly under a manager
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line managers
they have direct responsibility over the people below them in the hierarchy of an organisation
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staff managers
specialists who provide support, information and assistance to line managers
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giving a subordinate the authority to perform particular tasks
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leadership styles
the different approaches to dealing with people when in a position of authority
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autocratic leadership
where the manager expects to be in charge of the business and to have their orders followed
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democratic leadership
gets other employees involved in the decision making process
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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
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trade union
a group of workers who have joined together to ensure their interests are protected
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closed shop
all employees must be a member of the same trade union
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the process from identifying that the business needs to employ someone up to the point at which applications have arrived at the business
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job analysis
identifies and records the responsibilities and tasks relating to a job
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job descriptions
outlines the responsibilities and duties to be carried out by someone employed to do a specific job
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job specification
a document which outlines the requirements, qualifications, expertise, physical characteristics, etc, for a specified job
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internal recruitment
when a vacancy is filled by someone who is an existing employee of the business
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external recruitment
when a vacancy is filled by someone who is not an existing member of the company
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considered to be between 1-35 hours per week
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employees will usually work 35 hours per week or more
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induction training
and introduction given to a new employee, explaining the firm's activities customs and procedures and introducing them to their fellow workers
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on-the-job training
occurs by watching a more experienced worker perform the job
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off-the-job training
involves being trained away from the workplace, usually by specialist trainers
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workforce planning
establishing the workforce needed by the business
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when an employee is no longer needed
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ethical decision
a decision taken by a manager or a company because of the moral code observed by the firm
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industrial tribunal
a legal meeting which considers workers complaints of unfair dismissal or discrimination at work
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contract of employment
a legal agreement between employer and employee listing the rights and responsibilities of worker
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the transferring of a message from the sender to the receiver, who understands the message
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the information or instructions being passed from the sender to the reciever
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internal communication
communication between members of the same organisation
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external communication
communication between two or more organisations or individuals
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the person starting off the process by sending the message
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medium of communication
the medium used to send a message
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the person who receives of the message
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the reply from the receiver which shows whether the message has arrives, been understood, and if necessary, acted upon
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one-way communication
a message which does not require a reply
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two-way communication
a message which requires a reply
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formal communication
messages sent using professional language
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informal communication
when information is sent and received casually
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communication barriers
factors that stop effective communication
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market share
the percentage of total market shares held by one brand or business
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mass market
where there is a large number of sales for a product
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niche market
a small, specialised segment of a much larger market
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market segments
an identifiable sub-group of a whole market in which consumers have similar characteristics or preferences
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Other cards in this set

Card 2


this is the number of people available to make products



Card 3


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


Preview of the back of card 3

Card 4


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


Preview of the back of card 4

Card 5


good or service essential for living


Preview of the back of card 5
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