Business Definitions

Cards (37)

  • Appraisal is the process of evaluating the performance of an individual employee.
  • Assets are items owned by a business
  • A balance sheet is a financial statement recording assets and liabilities at a particular time.
  • Benchmarking is the process of a business matching part of another business's process
  • Big Data is large and complex data sets to gather insights.
  • Capital Structure is the way in which a business has used its capital to acquire assets
  • A confidence level is the probability that research findings are correct.
  • A confidence interval is the possible range of outcomes for a given confidence level
  • Conglomerate integration is where a business partners with an entirely different business
  • Contingency planning is where a business plans for possible but unlikely events to minimise risk
  • Corporate social responsibilities are the duties of a business has to cater for the environment, customers, society and employees.
  • A cost leadership strategy involves gaining lower costs than rivals in the same industry.
  • Critical path is part of network analysis in which activities have zero float, indicating overall time for project to be completed. If critical path is disrupted, entire project is delayed
  • Data mining is an analytical process aiming to identify patterns between variables
  • Debentures are loans with fixed interest rates that possibly have no repayment date.
  • Diseconomies of Scale occurs when a business unit costs decrease as the business expands
  • Dividends are the amount of company profits shared with shareholders in relation to the number of shares owned by the individual
  • Division of labour is the process of breaking down the process of production into a series of small and repetitive tasks for lower skilled employees
  • Economies of scale occurs when unit costs fall due to business expansion, in relation to output volume
  • Economies of scope occurs when business's get cost advantage through sharing costs through their portfolio
  • An emergent strategy is a strategy that develops over time
  • An emergent market is a country with low incomes but is having high economic growth
  • Enterprise resource planning, or ERP, is a software application enabling a business to manage its activities effectively, such as marketing or sales. This helps with decision making as information is grouped together for comparison.
  • The experience curve is the cost advantage help by a business due to experience within that market, as they are able to make more informed decisions
  • Float time is how long an activity can be overrun without delaying the entire project
  • Globalisation is the increased trade between other countries
  • Horizontal Integration occurs where one business joins with another in the same stage of production
  • Human resource flow is the movement of employees through the organisational structure
  • Income elasticity of demand is the extent of how responsive demand is in relation to a change of customer income
  • Operating profit is the money left before tax
  • Outsourcing is where a business gets another business to complete part of their work
  • Overtrading occurs when liquidity problems arise with the rapid growth of a business
  • A patent protects inventions and processes
  • Protectionism is governmental policy which prevents free imports into a country, in order to make business more domesticated
  • A quota is a limit on the number of good and service imports
  • Return of capital employed is the net profits of a business expressed as a percentage if the value of capital employed in the business
  • Sensitivity analysis is the analysis of other potential outcomes of a proposal