G-H
The difference between revenue and cost of sales
gross profit
Where costs and prices in an economy are increasing
Inflation
An explanation of the roles and responsibilities of a job
job description
The time between ordering a good or service and receiving it
Lead time
The additional output that a business produces or expects to produce more than its breakeven output
Margin of safety
The percentage profit made on sales not taking into account the businesses expenses
gross profit margin
Growth which occurs by merging with or taking over another business
external or inorganic gowth
Method of production where products are made individually
job production
The protection enjoyed by shareholders who can only lose the money they have put into the company
Limited liability
A diagram representing different businesses in a market that are compared to two variables, such as price and quality; it is used to identify a gap in the market
market map
A business objective of increasing the amount or value of sales
growth
Where a business runs out of cash and is not able to obtain new finance
Insolvency / bankruptcy
Where inputs into the production process arrive on the production line just as they are needed
just-in-time (JIT)
Where the costs of a business are greater than its income
Quantitative information such as sales figures over time for the market of a product or service
Market data
Legal constraints that protect the employees of a business from unsafe business practice
health and safety law
The cost of borrowing money or the reward for saving money
interest rate
Giving workers more responsibility or more complex and challenging tasks so they have a sense of achievement
job enrichment
The management of the flow of goods, information and money along the supply chain
Logistics
The inputs needed for the production of a good or service
(raw) materials
Where the organisational structure has many layers, long chains of command and narrow spans of control
hierarchical structure
The purchase of new premises or machinery which can be used for growth, replacement or mechanisation
Investment
Where a worker moves from one job to another job over a period of time
job rotation
Where a business prices a good at less than its cost to encourage customers to buy other goods at the same time
Loss leader
The desire of an employee to do a job well
Motivation