Unit 1
The next most desired option that is given up
What is opportunity cost?
A detailed document highlighting all of a person's professional and academic achievements, work experience and awards
What is a curriculum vitae?
Setting a relatively low price to achieve a high volume of sales
What is penetration pricing?
the number of units produced during a time period
What is level of production?
Long-term bonds issued by companies to raise debt finance
What are debentures?
A business employee who takes direct responsibility for turning an idea into a profitable new product or business venture
What is intrapreneur?
Practices and processes aimed at creating a mixed workforce and placing a positive value on diversity in the workplace
What is diversity policy?
When a sample is not a good representation of the whole population
What is sampling bias?
The production of items in a continually moving process
What is flow production?
When a business cannot meet its short-term debts
What is insolvent?
Economic resources are owned largely by the private sector with very little state intervention
What is free-market economy?
The process of negotiating terms of employment between an employer and a group of workers who are usually represented by a trade union official
What is collective bargaining?
Setting a price by calculating a total unit cost for the product and then adding a fixed profit mark-up
What is cost-plus pricing?
The level of inventory that triggers a new order to be sent to suppliers
What is re-order level?
Monitoring of debts to ensure that credit periods are not exceeded
What is credit control?
The total value of all long-term finance invested in the business
What is capital employed?
A sense of fulfilment reached by feeling enriched and developed by what one has learned and achieved
What is self-actualisation?
An inward looking approach that focuses on making products that can be made and then trying to sell them
What is Product-Orientation?
The network of all the businesses and activities involved in creating a product for sale
What is supply chain?
A method of costing in which all indirect and direct costs are allocated to the products, services or divisions of a business
What is full costing?
Agreement between two organisations to commit resources to achieving a specific objective while remaining independent
What is a strategic alliance?
A scheme that gives employees shares in the company they work for or allows them to buy it at a discount
What is share-ownership scheme?
Consumer's view of a product or service when compared to its competitors
What is product positioning?
Reducing capacity by closing factories / production units?
What is rationalisation?
Cost budgets for each expense are allowed to vary if sales or output vary from budgeted levels
What is flexible budgeting?