AS Unit 1 Business and it's Environment

1.
Business Plan
A document setting out a business's objectives and how it will achieve them

2.
Start Up
A new business

3.
Internal Growth
Business expansion without taking over or merging with another business (organic growth)

4.
External Growth
Business expansion taking over or merging with another business )

5.
Sole Trader
"A business owned by one person who is responsible for all decisions, capital invested and
risk."

6.
Partnership
"Two or more people join to set up a business. Shared decision making, capital invested
and risk."

7.
Private Limited Company
Incorporated business with shares sold to friends and family. Limited liability.

8.
Public Limited Company
Incorporated business with shares sold to general public. Limited liability.

9.
Joint Venture
Two companies share capital and expertise on a project. Share risks and profits.

10.
Franchise
Buying the license to use another companies logo and sell their products.

11.
Unincorporated Business
No separation between the company and the owners in law

12.
Incorporated Business
Business is a separate legal entity - separation between owners and the company

13.
Limited Liability
Owners responsibility for company debts restricted to what they have invested

14.
Unlimited Liability
Owners personal assets may be taken to pay for debts of the company.

15.
Public Corporation
Government owned organisation set up to provide service to the public

16.
Business Objectives
Aims or targets a business sets out to achieve
 17.
Social Enterprise
private enterprise which uses profits to pursue environmental or social objectives

18.
Internal Stakeholders
Individual or group inside the business impacted by the business activity
(owners/shareholders, managers, employees)

19.
External Stakeholders
person or group outside the business impacted by the business activity

20.
Grant
capital given by a government to a business to assist with start up costs, innovation or
business growth

21.
Triple Bottom Line,
Business objectives not just based on profit, but also social and environmental objectives

22.
Co-operative,
business, or other organization which is owned and run jointly by its members, who share
the profits or benefits.

23.
Corporate Social Responsibility
businesses who take responsibility for the social and economic impact of their activity

24.
Business ethics
“Doing the right thing” basing business decisions on what is morally right

25.
Mission Statement
A mission statement is a visionary aim for a business of the direction/purpose

26.
Purpose of Business Activity
Business satisfies peoples (consumers) wants

27.
Opportunity Cost
the potential benefits a business misses out on when choosing one alternative over
another.

28.
Value Added
Selling price - cost of bought in materials

29.
Primary Sector
Using natural resources to make raw materials for business

30.
Secondary Sector
Manufacturing goods from raw materials

31.
Tertiary Sector
Services to consumers and other businesses (B2B)

32.
Public Sector
Part of the economy owned and controlled by the government
 33.
Private Sector
Part of the economy owned and controlled by private individuals

34.
Entrepreneur
Someone who invests capital, takes a risk and starts up and operates a new business
venture

AS Unit 2 People in Organisations

1.
Motivation
Motivation is the reason why employees work hard and effectively for a business

2.
Autocratic Leadership
Leader makes all decisions, one way communication

3.
Bonus
an extra reward given to employees for reaching a certain target

4.
Commission
salespeople are given a % of the selling price if they make a sale. employees get rewarded
with a % of the firms profits annually

5.
Delegation
Passing responsibility to subordinates to complete tasks

6.
Democratic leadership
Leader consults with employees before making decision - two way communication

7.
Discrimination
Treating an employee differently because of age, ethnicity, gender,

8.
Dismissal
End of employment due to underperformance or breaking company regulations

9.
Functions of management
Planning, Commanding, Controlling, Organising and co-ordinating

10.
Herzberg's Hygiene Factors
"basic employee needs which must be fulfilled before employees can be motivated

11.
Induction training
Training to familiarise new employees with the workplace, co-workers and procedures

12.
Job enrichment
employees are given additional responsibility in their day-to-day tasks which often
involved more training or development.

13.
Job rotation
employees switch simple tasks for a short time.

14.
Labour productivity
Labour productivity – output per worker measured by Output/no. of workers

15.
Labour turnover
is the amount of employees leaving a business in a year and is calculated as a share of the
total workforce

16.
Lassez-Faire Leadership
A "hand's off" approach to leadership where most decisions and responsibility are
delegated to employees

17.
Legal Minimum Wage
Government sets the lowest pay rate for workers within a country

18.
Maslow's Hierarchy of needs
ranked human needs in order from survival needs to self-actualisation

19.
Off the job training
Training off site at a college or specialist training location

20.
On the job training
Training at the workplace under the direction of an experienced employee

21.
Opportunities for promotion
Employees are given a position of higher responsibility and/or status in an organisation

22.
Recruitment and Selection
Finding and choosing the correct candidate for the vacant job post

23.
Salary
fixed payment usually paid monthly

24.
Span of control
No of subordinates who report to each manager/supervisor

25.
Taylor
viewed workers as machines – they more you pay the harder they will work.

26.
Team working
– group of employees are given responsibility for a specific project, department or unit of
work.

27.
Trade Union
Organisation of employees who aim to improve the pay and conditions of their members

28.
Training
improving the knowledge and skills of employees so they perform their jobs more
effectively.

29.
Unfair dismissal
Ending a work contract without proper or legal justification.

30.
Wages
payment for work, usually paid weekly

31.
External recruitment
Hiring an employee for a post not currently employed by the business

32.
Internal recruitment
Hiring an employee for a post currently employed by the business in another post

33.
Redundancy
Losing employment as the position no longer exists - for example after a factory is closed

34.
Mintzberg's Roles of Management
Mintzberg identified 10 roles common to all managers under three categories,
interpersonal, informational and decisional roles

35.
McGregor's Leadership Roles
Management attitudes to employees - theory X sees employees as lazy and irresponsible,
theory y as hardworking and responsible

36.
Mayo
Recommended working in teams, greater consultation between workers and managers and
allowing greater control over the daily lives of employees to improve motivation

37.
McClelland/Vroom Expectancy Theory
Expectancy theory based on valence, expectancy and instrumentality connecting employee
efforts to rewards in order to improve motivation.

38.
Performance Related Pay
A bonus scheme used to motivate employees for above average performance

39.
Emotional Intelligence
managers ability to understand their own emotions and those around them, leading to
attaining business objectives.

40.
Worker participation
any process in the company that allows workers to exert influence over their work or their
working conditions

41.
Job Redesign
Restructuring the elements including tasks, duties and responsibilities of a specific job in
order to make it more encouraging and inspiring for the employees

42.
Empowerment
delegation of some authority and responsibility to employees and involving them in the
decision-making process

43.
Fringe benefit
an extra benefit in addition to an employee's money wage or salary, for example a
company car, private healthcare, etc.

44.
Job description
duties and responsibilities of a position
 45.
Person specifications
description of the qualifications, skills, experience, knowledge and other attributes
(selection criteria) which a candidate must possess to perform the job duties

46.
Contract of employment
A contract is an agreement between employee and employer setting out terms and
conditions of a job.

47.
Staff morale
attitude, satisfaction and overall outlook of employees towards an organization or a
business

48.
Diversity and equality policies
outlines how a business will avoid discrimination against employees, and create a safe and
inclusive workplace

AS Unit 3 Marketing
1.
Advertising
influencing the buying behaviour of consumers with a persuasive selling message about
products and/or services.

2.
Brand
A name image or logo which distinguishes a product or service from competitors

3.
Brand image
The the general impression that a brand presents to consumers

4.
Building customer relationships
Building strong relationships to ensure customer loyalty

5.
Competitive pricing
Setting a price close to competitors products in the same market

6.
Cost plus pricing
Adding a fixed price to the cost of making or buying a product

7.
Customer loyalty
Consumers who make repeated purchases of a specific product or brand

8.
Distribution channels
The path a product takes from producer to consumer

9.
E-commerce
Selling products and services over the internet

10.
Extension strategies
Strategies to lengthen the maturity stage of a product

11.
Licensing
An agreement in which one company gives another company permission to manufacture
its product for a payment.
 12.
Market
All potential consumers who have an interest in buying a product and the money to do so

13.
Market orientated
Products or services developed in response to market research data

14.
Market segmentation
Splitting a market into smaller parts based on consumer characteristics

15.
Marketing Mix
Four marketing decisions required for the successful marketing of a product or service
(4p's or 4c's)

16.
Market research
Collecting and analysing data about customers, competitors and the market for a product
or service

17.
Market Share
Revenue of a business as a % of the total market revenue

18.
Marketing Strategy
Plan to achieve marketing targets with set resources

19.
Mass marketing
Selling the same product to a whole market

20.
Niche marketing
Developing product for a small market segment

21.
Packaging
The wrapping material around a consumer item that serves to contain, identify, describe,
protect, display, promote and otherwise make the product marketable and keep it clean.

22.
Penetration pricing
Setting a low price to attract consumers to buy a new product

23.
Price elasticity
How much demand is impacted by a change in price

24.
Price skimming
Setting a high price for a new unique product which has no direct competitor in the market

25.
Product development
The creation of products with new or different characteristics that offer new or additional
benefits to the customer.

26.
Product life cycle
Pattern of sales from introduction to withdraw from the market

27.
Product oriented
A business decides what to produce then finds buyers for the product
 28.
Promotional pricing
reducing the price of a product or services in short term to attract more customers &
increase the sales volume

29.
Sales Promotion
incentives used to encourage short term increases in sales or repeat purchases

30.
Sampling
Taking a representative sample from the target market to complete market research

31.
Secondary research
Collection of data from second hand resources

32.
Social media marketing
is the use of social media websites and social networks to market a company's products
and services.

33.
Primary research
First hand data collected specifically for a business needs

34.
4c's
Consumer wants and needs, Cost, Convenience, and Communication

35.
Random Sampling
member of the sample has an equal probability of being chosen

36.
Stratified sampling
sample from groups based on members' shared characteristics such as income or
educational attainment.

37.
Focus groups
a group of people gathered to discuss heir opinions and preferences about a product

38.
Surveys
asking consumers or potential consumers for their opinions and preferences about a
product

39.
Market Growth
Market growth is the increase or decrease in the size of a market for a product or service
over time.

40.
Supply
the total amount of a specific good or service that is available to consumers.

41.
Demand
consumer's desire to purchase goods and services and willingness to pay a price for a
specific good or service.

42.
Marketing Objectives
Marketing objectives are goals set by a business when promoting its products or services
to potential consumers that should be achieved within a given time frame
 43.
Product Differentiation
is the process of distinguishing a product or service from others, to make it more attractive
to a particular target market.

44.
Unique Selling Point (USP)
A unique selling proposition (USP, also seen as unique selling point) is a factor that
differentiates a product from its competitors, such as the lowest cost, the highest quality
or the first-ever product of its kind

45.
Above the line promotion
he use of promotional methods that cannot be directly controlled by the company selling
the goods or service, such as television or press advertising

46.
Below the line promotion
Below-the-line promotion is the use of promotional methods that can be controlled by the
company selling the goods or service, such as in-store offers and direct selling.

47.
Dynamic pricing
changing the price for a product or service to reflect changing market conditions, in
particular the charging of a higher price at a time of greater demand.

48.
Viral marketing
consumers are encouraged to share information about a company's goods or services via
the Internet.

49.
E-commerce
commercial transactions conducted electronically on the Internet.

AS Unit 4 Operations and Project Management

1.
Average costs
Cost of producing a single unit of output

2.
Break even
The level of output where sales revenue is the same as total costs, neither a profit or loss
is made

3.
Diseconomies of scale
Factors that result in average price of production increasing as output increases

4.
Economies of scale
Factors that result in average price of production decreasing as output increases

5.
Fixed costs
Costs that don't change with output

6.
Margin of safety
Difference between the current level of output and break even point

7.
Quality assurance
Achieving quality production by designing every process to get the product 'right first time'
and preventing mistakes
 8.
Quality control
Checking quality through inspection at the end of the production process

9.
Total Costs
Fixed costs plus variable costs

10.
Variable costs
Costs that change with output

11.
Production
The process of converting inputs like (raw materials and components) into finished
products

12.
Productivity
Measure of efficiency by calculated by dividing output by input

13.
Efficiency
Making the best possible use of resources. Maximising outputs from inputs.

14.
Inventory
Stock of work in progress, raw materials, and finished products held by a business

15.
Lean Production
Production of goods and services with maximum efficiency and minimum waste

16.
Kaizen
( 'continuous improvement') constantly introducing small changes in a business in order to
improve quality and/or efficiency.

17.
Just in time (inventory management)
is an inventory management method where supplies arrive exactly when needed in the
production process

18.
Job production
Producing a unique product, one at a time.

19.
Batch production
Producing goods in batches where all products must pass through one stage of production
before moving onto the next

20.
Flow production
Constantly producing large quantities of identical goods

21.
Transformation Process
activity or group of activities that takes one or more inputs, transforms and adds value to
them, and provides outputs for customers or clients.

22.
Effectiveness
achieving business objectives by using inputs productively to meet customers’ needs.

23.
Value Added
Value-added is the difference between the price of product or service and the cost of
producing it.

24.
Capital Intensive
High quantity of capital input compared to labour input

25.
Labour intensive
High quantity of labour input compared to capital input

26.
Process Innovation
is the implementation of a new or significantly improved production or delivery method.
This includes significant changes in techniques, equipment and/or software

27.
Internal Economies of scale
Economies of scale achieved within an organisation

28.
Reorder Level
Inventory level at which a company would place a new order

29.
Lead Time
Time taken between placing an order and receiving delivery.

30.
Buffer Inventory
supply of inputs held as a reserve in case of unexpected changes in demand or supply.

31.
External Economies of scale
Economies of scale achieved outside the firm due to larger changes with an industry

AS Unit 5 Finance and Accounting

1.
Start Up Capital
money required to set up a business and keep the business operating until the business
starts to break even

2.
Overdraft
banks allow businesses to take additional money out of their account up to a certain limit

3.
Loan
bank lends a fixed amount for an agreed time period, which must be repaid with interest

4.
Equity Finance
selling shares in the business to raise finance rather than borrowing

5.
Debt Finance
borrowing money from a bank which must be re paid with interest

6.
Micro Finance
lending small amounts of finance small business people to those who can’t access finance
from another source

7.
Crowd funding
raising finance by raising small amounts of money from a large number of people, usually
via the Internet.

8.
Trade Credit
– delaying payment to suppliers for an agreed time period

9.
Cash Flow
cash used to pay short term debts (current assets - current liabilities)

10.
Cash Flow
cash flow in and out of the business over a period of time

11.
Cash flow forecast
Estimate of future cash inflows and outflows usually calculated month by month to ensure
there is enough cash to pay short term debts

12.
Net cash flow
Cash inflows - cash outflows

13.
Profit
Sales revenue - total costs of making a product/service

14.
Working Capital
- capital available to a business day to day to pay short term debts. Current Assets –
current liabilities

15.
Cash In Flow
Cash going into a business

16.
Cash Out Flow
cash going out of the business

17.
Short term finance
finance required for short periods usually less than one year

18.
Long Term Finance
finance required for periods usually longer than one year

19.
Sale of assets
selling equipment /machinery/inventory to finance the business

20.
Retained Profit
reinvesting profits back into the business

21.
Owners Savings
– using owners own savings to finance the business

22.
Capital Employed
Money invested in a business (buildings, machinery)

23.
Internal Sources of Finance
Finance sourced from inside the business - for example owner's funds, sale of assets and
retained profit all are

24.
Capital Expenditure
money spent by a business or organization fixed assets, such as land, buildings, and
equipment.

25.
Revenue Expenditure
money spent by a business or organization on day to day operating costs such as rent,
insurance, heating, maintenance etc

26.
Sale and Leaseback
Selling an asset for a capital sum and then leasing at an agreed rate from the buyer.

27.
Fixed Cost
Costs that don't change with output.

28.
Variable Costs
Costs that change with output.

29.
Marginal Costs
the cost added by producing one additional unit of a product or service

30.
Direct costs
A cost that can be directly tied to the production of specific goods or services

31.
Indirect costs
A cost that can't be directly tied to the production of specific goods or services

32.
Net assets
Total assets - Total Liabilities

33.
Reserves
Liquid assets held by a bank, company or government in order to meet expected future
payments and/or emergency needs

34.
Window Dressing
Presenting the company accounts in a favourable light – to give the impression of a better
financial position

35.
Trade Receivables
the value of payments to be received from customers who have bought goods on credit

36.
Trade Payables
value of debts for goods bought on credit payable to suppliers; also known as ‘accounts
payables’.

37.
Debt Factoring
With debt factoring, a business can raise cash by selling their outstanding sales invoices
(receivables) to a third party (a factoring company) at a discount.