Definitions

Created by

Jacob

Cards (39)

What is enterprise?
Seeing a opportunity to provide a product or service that people are willing to buy
What is a sole trader?
Business owned by one person
What is a capital?
Money invested into company by a business
What is a shareholder?
Owners of a limited company that invest money into the business
What does the term limited liability mean?
Responsibility for the debts of a business is limited to the amount invested by a shareholder
What does the term limited liability mean?
Responsibility for all the debts of business rests with the owners
Private Limited Company is...
A smaller business owned by at least two shareholders
Public Limited Company is...
Larger Business
What is a dividend?
Money paid to shareholders from the profits of a limited company
What is market share?
share of the total market for a product or service
What are stakeholders?
A stakeholder can be an individual or group of people who have an interest in a business
What is organic growth?
Growth of a business internally by increasing sales
What is external growth?
Growth of a business by takeover or merger
What is horizontal growth?
A merger or takeover where two businesses are involved in similar operations
What is backwards vertical growth?
Business merges or takes over a business that supplies it with goods or services
What is forward vertical growth?
Business merges or takes over a business that it supplies good or services to
What is diversification?
Business merges or takes over another business with which there is no connection
An example of primary research is...
Surveys
An example of secondary research is...
Magazines, journals, the internet
What are focus groups?
Small groups of customers who are selected to give opinions
What is market segmentation?
Splitting the market for a product into different paths or segments
What is skimming?
A new product is more advanced than the competitors, so the price is set high in order to gain more revenue
What is cost-plus pricing?
Adding a percentage of profit to the total costs of making a product
What is penetration pricing?
Price is set lower than competitor businesses in order to break into the market
What are zero-hour contracts:?
contracts given to employees which do not guarentee any work but can be called in when needed to work
What is full-time working?
when a person works 35 hours or more per week
What is part-time working?
when a person work fewer than 35 hours per week
What is internal communication?
takes place between people who work for the same organisation
What is external communication?
takes place between one person in an organisation and one person outside the organisation
What is vertical communication?
between people on different layers of the organisations chain of command
What is horizontal communication?
takes place with two people at the same level within the organisation
Examples of formal communications?
Letters, official meetings and reports
What is the human resources department?
Department that deals with the recruitment and selection of workers
What is an employment agency?
agency that has workers readily available for business hire
What is the turnover of labour?
a measure of the number or proportion of a staff who leave a firm each year and need replacing
What are fringe benefits?
additional benefits that workers receive on top of their pay
5 types of discrimination of the 2010 Equality Act 
Equal Pay, Race, Sex, Disability, Religion
What is working time directive?
statement of the max number of hours that a person can be asked to work
What is a trade union?
An employee organisation that exists to represent the interests of its members