Business Studies: Strategies for Success- Definitions

1. The management in a business that looks after the employees and their needs; they aim to make the best use of all employees and to achieve corporate goals. (3)
3. Treats employees as the most important resource in the business and a source of competitive advantage; they are treated as individuals and their needs are planned accordingly. (4, 3)
4. Where shareholders earn a return from their investment which is greater than their required rate of return. (11, 5)
9. Expenditure on assets which are intended to be kept in the business (e.g. IT systems, machinery) rather than sold or turned into products (7, 11)
10. A ratio that estimates the average period (in days) taken to settle amounts owed by a business to suppliers (8, 4)

2. Treats employees as a resource of the business (like machinery.) Strong link with the corporate business planning. (4, 3)
5. Amounts owned by, or owed to a business (6)
6. Targets that the HRM hopes to achieve by implementing HR strategies, so that the business can achieve its corporate objective. (2, 10)
7. A ratio that calculates the relationship between revenues and the total assets employed in a business. (5, 8)
8. Average Rate of Return. A measure of the total accounting return from an investment project (3)

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