LO2

• Statement of financial position - a summary statement on a particular date that shows a business assets, liabilities and owners equit.
• Income statement- a financial statement that shows the revenue and expenses a business has received and paid over a period of time; the statement will show the profit the business has made during this time
• Cash flow forecasting - estimating the expected cash inflows and overflows for a period of time in the future to identify likely surpluses or shortages
• Pricing strategy - the method used to determine the price of a product/ service, taking into consideration the market , competitors pricing, customer incomes
• Disciplinary procedure - a specified process for dealing with alleged employee misconduct
• Grievance procedure- a specified process for dealing with a complaint made by an employee about their treatment at work, eg discrimination, receiving lower pay than stated
• Interrelationships- the way in which two or more functional areas relate to one another
• Organisational structure- the design of the organisation
• Responsibilities

  Finance- Controlling the finance of the business

  Marketing- Identifying customer needs

  Sales- Communicating with existing and potential customers

  Human Resources (personnel)- Deals with matters relating to employees
• Responsibilities

  Operations Management (production)- Responsible for transforming raw materials (input) into finished goods (output)

  Customer Services- Liaising with customers on a day-to-day basis
• Responsibilities

  Business Support Services (IT or administration)- Supports the day-to-day running of the business

  Research and Development- Responsible for developing new products and services in response to research findings

  Purchasing (procurement)- Source and provide the raw materials, goods and services needed in the day-to-day running of a business