Unit 1: Business and it's Environment
The 3 objectives of social businesses; economic, social, and environmental
What is the triple-bottom line?
style of leadership that keeps all decision making at the center of the organisation
What is autocratic leadership?
An outward looking approach basing product decisions on consumer demand, as established by market research
What is Market orientation?
the ability to change or adapt production to meet new demand levels or customer requirements
What is flexibility of production?
capital needed by an entrepreneur to set up a business
What is start up capital?
firms that manufacture and process products from natural resources
What is the secondary sector?
a bonus for staff based on the profits of the business- usually paid as a proportion of basic salary
What is profit sharing?
Making a product distinctive so that it stands out from competitors' products in consumers' perception
What is product differentation?
land, labor, capital, entrepreneurship
What are factors of production?
is spending on all costs and assets other than fixed assets and including wages and salaries and materials bought for stock
What is revenue expenditure?
the only liability a shareholder has if the company fails is the amount invested in the company not the total wealth of the shareholder
What is limited liability?
deatailed list of the qualitites, skills, and qualifications that a successful applicant will need to have
What is person specification?
Identifying and exploiting a small segment of a larger market by developing products to suit it
What is Niche Marketing?
Cost savings that arise from buying in bulk or from a more powerful relationship with a supplier due to increased output
What are purchasing economies?
risk capital invested in business start ups or expanding small business that have good profit potential but do not find it easy to gain finance from other sources
What is venture capital?
the concept that accepts that business should consider the interest of society in its activites and decisions beyond the legal obligations that it has
Corporate Social Responsibility
when a job is no longer required so the employee doing this job becomes redundant through no fault of his or her own
What is redundancy?
Research into the in-depth motivations behind consumer buying behavior or opinions
What is qualitative research?
the property whereby long-run average total cost rises as the quantity of output increases
What are diseconomies of scale?
presenting the company accounts in a favorable light
What is window dressing?
a method of coordinating and motivating all staff in an organisation by dividing its overall aim into specific targets for each department, manager and employee
What is Management by Objectives?
Not employing staff directly, but using an outside agency or organisation to carry out some business functions
What is outsourcing?
Setting prices based in the variable costs of marketing a product in order to make a contribution towards fixed costs and profit
What is contribution-cost pricing?
using old inventory before new inventory to make sure that inventory wastage is kept to a minimum
What is inventory rotation?
record of the cash received by a business over a period of time and the cash outflows form the business
What is a cash-flow statement?