Business of People
The process whereby an individual acquires job related skills and knowledge
Training
The movement of cash into and out of a business over a period of time
Cash flow
A complete list of items such as property, goods in stock, or the contents of a building
Inventory
When a business offers better value than a competitor, either through lower prices or by providing greater benefits that justify higher prices
Competitive advantage
The business which pays a royalty to the brand owner
Franchisee
The exchange of information or ideas between two parties
Communication
The reduction in value of asset over time. Recorded on the balance sheet as a reduction in the value of assets and on the income statement as an expense
Depreciation
A fixed share of something that a person or group is entitled to receive or is bound to contribute
quota
Where a business moves a business function abroad
offshoring
The duties a business has towards employees, customers, society and the environment
Corporate Social Responsibility
The passing of authority (but not responsibility) down the organisational structure
delegating
The value of one currency expressed in terms of another
Exchange rate
Items that a business owns and which it expects to retain for one year or longer.
non-current assets
A company which has operations in several countries
multi-national corporation
Two business working together on a particular project while remaining legally separate. It is often used when setting up operations abroad
Joint Venture
A leadership style where subordinates are given very high levels of authority and empowerment without input by the leader.
Laissez-Faire leadership
The preparation of financial statements to present the company's performance in the best possible light
Window Dressing
Objective where a firm produces an increased range of unrelated goods and services
Diversification
A social movement that exists to promote improved trading terms and living conditions for producers of products in less-developed countries
Fair trade
A business which joins together with another business at a different stage of the same supply chain (i.e. a customer or a supplier)
Individuals or groups within society who have an interest in an organisation's operation and performance
Stakeholders
The cost of borrowing money and the reward for saving/lending
Interest rates
A model which shows the state of a product over its life. It involves the stages of development, introduction, growth, maturity, decline and extension
Product life-cycle
A promotion technique that uses social media and network effects to raise brand awareness through sharing of marketing material
Viral marketing
Occurs when an individual or group of individuals is responsible for all the actions of their business. With sole traders, there is no distinction in law between the individual and the business so they could lose their personal assets if the business has financial problems
Unlimited liability