Business Key Terms

Key Terms and Definitions of A292.

HideShow resource information
Primary sector
First stage of the production process, dealing with raw materials e.g. farming, fishing, mining
1 of 91
Secondary sector
Second stage of the production process, dealing with making goods e.g. manufacturing cars, tables
2 of 91
Tertiary sector
Third stage of the production process, dealing with services e.g. shops, hairdressers, ICT
3 of 91
Chain of production
The three stages of production – primary to tertiary
4 of 91
When each stage of production depends on another e.g. secondary depends on materials from primary
5 of 91
The decline of the manufacturing industry e.g. closure of Longbridge car plant
6 of 91
Added value
Making the product more valuable at each stage of production e.g. turning a plank of wood into a table
7 of 91
Long term goals that the business wants to achieve e.g. profit, survive
8 of 91
Short term targets to meet aims e.g. make £100 profit in year 1
9 of 91
Objectives – specific, measurable, achievable, realistic, timed
10 of 91
Mission statement
Summarises a business’ aims e.g. aspire, achievement for all
11 of 91
Private sector
Organisations owned by private individuals with the aim of making a profit e.g. Tesco, Bostin Baps
12 of 91
Public sector
Organisation owned and controlled by the government with the aim of providing a service e.g. schools, NHS, police
13 of 91
Any person or organisation who has an interest in the business e.g. customers, suppliers, competitors, government, employees, owners
14 of 91
Owners of shares in a business who receive a share of the profits each year (called dividends) e.g. owning 100 £1 shares in Tesco
15 of 91
A legal process to set up a company. Once completed, the Registrar of Companies will issue a Certificate of Incorporation e.g. Ltd, Plc
16 of 91
Businesses that are not ‘incorporated’ do not have to go through the legal process of setting up e.g. sole proprietors, partnerships
17 of 91
Limited liability
The owners are not personally responsible for the business debts so can only lose the amount that they invested in the business when paying them off e.g. amount invested in shares
18 of 91
Unlimited liability
The owners are responsible for the business debts so they can lose an unlimited amount of money including personal possessions to pay them off e.g. car, house
19 of 91
Tax on profits
A percentage of the profit that is paid to HMRC
20 of 91
Continuous operation of the business e.g. the business keeps running
21 of 91
Sources of finance
Where finance is obtained from e.g. owners funds, bank loan, government grant, selling shares
22 of 91
When a person cannot repay their debts
23 of 91
When a business cannot repay its debts
24 of 91
How big the business is depending on profits, number of employees etc e.g. micro, small, medium, large
25 of 91
Where the business operates e.g. local, regional, national, global
26 of 91
Sole trader
Business with unlimited liability, owned and run by one person e.g. window cleaner
27 of 91
Business with unlimited liability, owned and run by 2-20 partners e.g. solicitors
28 of 91
Private Limited Company Ltd
Limited liability company with private shareholders e.g. friends and family, Dudley Builder Ltd
29 of 91
Public Limited Company Plc
Limited liability company with shares sold on the stock exchange e.g. sold to the public, Tesco Plc
30 of 91
A public limited company that operates in various countries
31 of 91
Public sector organisation
An organisation that operates in the public sector e.g. NHS
32 of 91
Charity or social enterprise
An organisation that tries to do the most good for its chosen cause e.g. Oxfam, Cancer Research
33 of 91
Expansion through selling the right to use a successful business model e.g. McDonalds
34 of 91
A person who buys a franchise to run as their own
35 of 91
A person who gives the right to the franchisee to use their business model
36 of 91
A group that shares in a business to ensure fair deals for members e.g. the Co-op
37 of 91
People who run a charity and act as the directors
38 of 91
What you own
39 of 91
What you owe
40 of 91
A percentage of profits received annually by shareholders in return for their investment
41 of 91
The procedure a business will go through to replace an employee or take on new staff. They prepare an advert, then advertise the job, then read applications, select candidates, interview then select the best candidate for the job.
42 of 91
Selecting candidate that are suitable for a vacant job position
43 of 91
Applying for a job vacancy – usually via a form
44 of 91
The personnel who has applied for the vacant job position
45 of 91
When the successful candidate for a vacant job position is given the job
46 of 91
Short list
Selecting a few candidate from many applications
47 of 91
Job description
A detailed statement about the nature of a job, it should identify the precise tasks and responsibilities that are involved in that job.
48 of 91
Person specification
A statement listing the characteristics required to do a job successfully.
49 of 91
Curriculum Vitae (CV)
A summary of a person's career and experience that can be used in the recruitment process.
50 of 91
On-the-job training
This is the instruction of an employee at their place of work
51 of 91
Off-the-job training
This method of training involves trainees leaving their normal place of work and attending a session or series of sessions that concentrate on skills, attitudes and theories that relate to work being undertaken.
52 of 91
A method of measuring the performance of an employee. These are often carried out once a year.
53 of 91
The training program that is designed to familiarise new workers with the layout, health and safety and security systems in operation in their new place of employment.
54 of 91
Life-long learning
Continuous learning throughout your career
55 of 91
This is the will to work due to the enjoyment of the job itself.
56 of 91
Maslow's hierarchy of needs
A theory of human motivation
57 of 91
Piece rate
The payment of wages solely on the basis of the number of items each worker produces.
58 of 91
A percentage of sales taken as payment as a reward
59 of 91
Profit Sharing
A percentage of profits given to employees as a reward
60 of 91
A sum of money added to wages as a reward
61 of 91
Fringe Benefit
Something received by a worker in addition to their wage or salary.
62 of 91
Physiological needs
Physical requirements to be able to survive
63 of 91
To achieve and realise your full potential
64 of 91
Job satisfaction
How content and motivated a person is at work
65 of 91
The 1970 Equal Pay Act
Requires that pay rates are the same for identical or similar jobs.
66 of 91
The 1970 Sex Discrimination Act
Makes it illegal for people to be discriminated against on the grounds of their sex.
67 of 91
The 1976 Race Discrimination Act
Outlaws discrimination on the grounds of colour, race, nationality and ethnic origin.
68 of 91
The National Minimum Wage Act 1988
Gives everyone the right to a minimum amount to be paid depending on their age.
69 of 91
The 1995 Disability Discrimination Act
Makes it illegal for an employer to treat a disabled person less favourably for a reason which relates to the disabled person’s disability.
70 of 91
Employment law
The law that protects employees whilst employed
71 of 91
Trade Union
An organised group of employees who discuss with the management, pay and conditions, on behalf of their members.
72 of 91
Organisational structure
How an organisation is structured within
73 of 91
Tall/flat structure
A tall structure has many layers within the hierarchy whereas a flat one doesn’t
74 of 91
The different levels of authority in a business. e.g. managing director, finance director, accountant, wages clerk
75 of 91
Span of control
The number of people in a business who are directly responsible to a particular manager.
76 of 91
Chain of command
The path that decisions and orders will pass through from the top of a hierarchy to the bottom.
77 of 91
Where layers of hierarchy are removed from the structure of an organisation, in order to make it flatter.
78 of 91
The job a person performs in a business. Eg personnel manager's function is to recruit new employees and to look after the general welfare of the workforce.
79 of 91
Where a group of people are experts in a particular field
80 of 91
Informal/formal structure
A formal structure is how the organisation is planned out and employees are aware of it. Informally employees may mix with others who they do not need to professionally.
81 of 91
Where a manager gives a subordinate the authority to do a job without being supervised.
82 of 91
An employee who is answerable to a specified manager.
83 of 91
Internal communication
Between people who work in the same organisation
84 of 91
External communication
Between people from different organisations
85 of 91
Vertical communication
Communication between people on different layers of the hierarchy e.g. manager to worker
86 of 91
Horizontal communication
People at the same level within an organisation communicate e.g. manager to manager
87 of 91
Two-way communication
A message is sent from sender to receiver who sends a message back to sender
88 of 91
One-way communication
A message is sent from the sender to the receiver
89 of 91
Informal communication
When official means of communication are not needed e.g. a chat at break
90 of 91
Formal communication
When official means of communication are used within an organisation e.g. letter, meetings
91 of 91

Other cards in this set

Card 2


Second stage of the production process, dealing with making goods e.g. manufacturing cars, tables


Secondary sector

Card 3


Third stage of the production process, dealing with services e.g. shops, hairdressers, ICT


Preview of the back of card 3

Card 4


The three stages of production – primary to tertiary


Preview of the back of card 4

Card 5


When each stage of production depends on another e.g. secondary depends on materials from primary


Preview of the back of card 5
View more cards


No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all General resources »