Unit 1
Form of business in which two or more people agree to jointly own a business
What is Partnership?
Reasons why employees want to work hard and work effectively for the business
What is motivation?
When existing customers continually buy products from the same business
What is customer loyalty?
Amount paid for each unit of output
What is piece rate?
Companies that have separate legal status from their owners
What is incorporated business?
When owners of two businesses agree to join their businesses together
What is a merger?
Involves using groups of workers and allocating specific tasks and responsibilities to them
What is teamworking?
a business whose main focus of activity is on the product itself
What is a product-oriented business?
Difference between the selling price of a product and the cost of bought-in materials and components
What is added value?
Refers to the levels of management in any organisation
What is hierarchy?
When one business merges with or takes over a business in a completely different industry
What is conglomerate integration?
Number of subordinates working directly under a manager
What is span of control?
When people are selected on the basis of certain characteristics as a source of information for market research
What is a quota sample?
Managers who have direct responsibility for people below them in the hierarchy of an organisation
What is a line manager?
Payments made to shareholders from the profits of a company
What is dividends?
Occurs when there is a decline in the importance of the secondary, manufacturing sector of industry
What is de-industrialisation?
Type of law court that makes judgements on disagreements between companies and their employees
What is industrial tribunal?
When product is priced in line with or just below competitors prices to try to capture more of the market
What is competitive pricing?
Describes the stages a product will pass through from its introduction to decline
What is product life cycle?
Outlines the responsibilities and duties to be carried out by someone employed to do a specific job
What is a job specification?
Has social objectives as well as an aim to make a profit to reinvest back into the business
What is a social enterprise?
When all employees must be a member of the same trade union
What is a closed shop?
Independent person or business that is appointed to deal with the sales and distribution of a product
What is agent?
where the emphasis of advertising or sales promotion is to give full information about the product
What is informative advertising?
Incentives such as special offers or deals aimed at consumers to achieve short-term increases in sales
What is sales promotions?