These added to the prices of goods and taxpayers pay the tax as they purchase the goods.
Indirect taxes
Describes the stages a product will pass through from its introduction, through its growth until it is mature and then finally its decline.
Product life cycle
Refers to people who are potential buyers of a product or service.
Target audience
The structure in an organisation which allows instructions to be passed down from senior management to lower levels of management.
Chain of command
A picture that shows the levels of management and division of responsibilities within an organisation.
Organisational structure
The percentage of total market sales held by one brand or business.
Market share
This kind of growth happens when a business expands its existing operations.
Internal growth
This occurs by watching a more experienced worker doing the job.
On-the-job-training
An introduction given to a new employee, explaining the firm's activities, customs and procedures and introducing them to their fellow workers.
Induction training
This is our natural world.
Environment
A payment relating to the number of sales made .
Commission
Employment of between 1 and 30-35 hours a week, often because employees have other responsibilities.
Part-time
these have factories, production or service operations in more than one country.
Multinational businesses
This is the rise in the value of a currency compared to other currencies.
Exchange rate appreciation
An identifiable sub-group of a whole market in which consumers have similar characteristics or preferences.
Market segment
Involves being trained away from the workplace, usually by specialist trainers.
Off-the-job-training
A payment for work, usually paid weekly.
Wage
These are the gains to a business.
Private benefit
Shows how the gross profit of a business is calculated.
Trading account
The owners of a limited company. They buy shares which represent part ownership of a company.
Shareholders
These are costs paid for by the rest for society, other than the business, resulting from business activity.
External costs
This is a physical limit to the quantity of a product that can be imported.
Import quota
Cash flow cycle shows the stages between paying out cash for labour, materials, etc. and receiving cash from the sale of goods.
Cash flow cycle
An image or identity given to a product which gives it a personality of its own and distinguishes it from its competitors brands.
Brand image
When employees vote on the decision-making process.
Democratic
A type of communication which allows a response.
Two-way
Net cash flow is the difference, each month, between inflows and outflows.
Net cash flow
Money obtained from sources outside of and separate from the business.
External finance
Cash inflows are the sums of money received by a business during a period of time.
Cash inflows
Made when sales revenue is greater than the cost of goods sold.
Gross profit
This is the term widely used to describe increases in worldwide trade and movement of people and capital between countries.
Globalisation
the reason why employees want to work hard and work effectively for the business.
Motivation
Goods and services sold from one country to other countries.
Exports
Workers swapping round and doing each specific task for only a limited time and then changing round again.
Job rotation
A decision taken by a manager or a company because of the moral code observed by the firm.
Ethical decision
Pay which is related to the effectiveness of the employee where their output can easily be measured.
Performance-related pay
An economy that has both a private sector and a public sector.
Mixed economy
Any change by the government in tax rates or public-spending.
Fiscal policy
When information is sent and received casually with the use of everyday language.
Informal
This is when consumers decide not to buy products from businesses that do not act in a socially responsible way.
Consumer boycott
Balance sheet shows the value of a business's assets and liabilities at a particular time.
Balance sheet
When the product is priced in line with or just below competitor's prices to try to capture more of the market.
Competitive pricing
Any person or group with a direct interest in the performance and activities of a business.
Stakeholder
The process from identifying that the business needs to employ someone up to the point at which applications have arrived at the business.
Recruitment
The fall in the value of a currency compared with other currencies.
Exchange rate depreciation
A section of the market which is very large, and lacks any specific definition.
Mass market
The reply from the receiver which shows whether the message has arrived, been understood and, if necessary, acted upon.
Feedback
A plan to combine the right combination of the four elements of the marketing mix for a product or service to achieve a particular marketing objective(s).
Marketing strategy
A legal meeting which considers workers complaints of unfair dismissal or discrimination at work.
Industrial tribunal
Incentives such as special offers or special deals aimed at consumers to achieve short-term increases in sales.
Sales promotion
The finance needed by a new business to pay for essential fixed and current assets before it can begin trading.
Start-up capital
The price of one currency in terms of another.
Exchange rate
The cost of producing or buying-in the goods actually sold by the business during a time period.
Cost of goods sold
The person who receives the message.
Receiver
When a product is sold at a very low price for a short period of time.
Promotional pricing
Scarcity is the lack of sufficient products to fulfill the total wants of the population.
Scarcity
When people are selected at random as a source of information for market research.
Random sample
Makes the broad objectives of the business known to employees, but then they are left to make their own decisions and organise their own work.
Laissez-faire
A set of questions to be answered as a means of collecting data for market research.
Questionnaire
A business whose main focus of activity is on the product itself.
Product-orientated
When all employees must be a member of the same trade union.
Closed Shop
Produced at the end of the financial year and give details of the profit or loss made over the year and the worth of the business.
Final accounts
Adding tasks that require more skill and/or responsibility as a means of motivating staff.
Job enrichment
Items of value which are owned by the business. They may be fixed (non-current) or short-term (current).
Assets
This occurs when the value of a currency rises - it buys more of another currency than before.
Currency appreciation
Specialists who provide support, information and assistance to line managers.
Staff managers
An Employee’s only job, usually over 35 hours or more a week.
Full-time
When a vacancy is filled by someone who is an existing employee of the business.
Internal recruitment
A business with social objectives as well as an aim to make a profit to reinvest back into the business.
Social enterprise
The professionally qualified people who have responsibility for keeping accurate accounts and for producing the final accounts.
Accountants
The net profit reinvested back into a company, after deducting tax and payments to owners, such as dividends.
Retained profit
A form of business in which two or more people agree to jointly own a business.
Partnership
A legal condition that means the liability of shareholders in a company is only limited to the amount they invested.
Limited liability
These are decisions based on a moral code.
Ethical decisions
This is development which does not put at risk the living standard of future generations.
Sustainable development
Specialisation occurs when people and businesses concentrate on what they are best at.
Specialisation
This is a tax on an imported product.
Import tariff
This is a change in interest rates by the government or central bank.
Monetary policy
The fall in the value of a fixed asset over time.
Depreciation
These are paid directly from incomes.
Direct taxes
This is when a business decision benefits stakeholders other than shareholders.
Social responsibility
This is when an employee is no longer needed and so loses their job. It is not due to any aspect of their work being unsatisfactory.
Redundancy
A business which carries out market research to find out consumer wants before a product is developed and produced.
Market-orientated
These exist when countries agree to trade imports/exports with no barriers such as tariffs and quotas.
Free trade agreements
Current liabilities are short-term debts owed by the business.
Current liabilities
When people are selected on the basis of certain characteristics (such as age, gender or income) as a source of information for market research.
Quota sample
A legal condition that means the owners of a business can be held responsible for all the debts of the business they own. Their liability is not limited to the investment they made in the business.
Unlimited liability
The physical container or wrapping for a product. It is also used for promotion and selling appeal.
Packaging
The process of providing financial services (including small loans) to poor people not served by traditional banks.
Micro finance
Private benefits + external benefits
Social benefit
A term which is used to describe all the activities which go into marketing a product or service. These activities are often summarized as the four P's - product, price, place, and promotion.
Marketing mix
These are production methods that do minimum damage to the environment.
Sustainable production methods
When one firm merges with or takes over another one in the same industry but at a different stage of production, it can be forward (higher stage of production) or backward (lower stage of production).
Vertical integration
The enjoyment derived from a feeling that you have done a good job.
Job satisfaction
Goods and services bought in by one country from other countries.
Imports
The unique name of a product that distinguishes it from other brands.
Brand name
Giving a subordinate the authority to perform particular tasks.
Delegation
this exists when people who are willing and able to work cannot find a job.
Unemployment
The collection and collation of original data via direct contact with potential or existing customers.
Primary research
A want is a good or service which people would like to have, but which is not essential for living. People's wants are unlimited.
Want
The finance needed by a business to pay its day-to-day costs.
Working capital
These the costs paid for by the business.
Private costs
Information that has already been collected and is available for use by others.
Secondary research
Non-financial rewards given to employees.
Fringe benefits
The process of gathering, analyzing and interpreting information about a market.
Market research
______________ communication. Outside of the company.
External
A financial plan for the marketing of a product or product range for some specified period of time.
Marketing budget
The means by which a product is passed from the place of production to the customer or retailer.
Distribution channel
This establishes the workforce needed by the business for the foreseeable future in terms of the number and skills of employees required.
Workforce planning
Liabilities are the debts owed by the business.
Liabilities
Closing cash is the amount of cash held by the business at the end of each month. This becomes next month's opening cash balance.
Closing cash (or bank) balance
Where a high price is set for a new product on the market.
Price skimming
This is when a government protects domestic firms from foreign competition using tariffs and quotas.
Protectionism
Working capital is the capital available to a business in the short-term to pay for day-to-day expenses.
Working capital
This identifies and records the responsibilities and tasks relating to a job.
Job analysis
Different approaches to dealing with people when in a position of authority - autocratic, laissez-faire or democratic.
Leadership styles
Opening cash is the amount of cash held by the business at the start of the month.
Opening cash (or bank) balance
When one firm merges with or takes over another one in the same industry at the same stage of production.
Horizontal integration
A need is a good or service essential for living.
Need
Where extra tasks of a similar level of work are added to a worker's job description.
Job enlargement
Non-current liabilities are long-term debts owed by the business.
Non-current liabilities
Liquidity is the ability of a business to pay back its short-term debts.
Liquidity
This occurs when the value of a currency falls - it buys less of another currency.
Currency depreciation
A type of communicatio which does not require a response.
One-way
The proportion of total market sales achieved by one business.
Market share
This is when a country's gross domestic product increases - more goods and services are produced than in the previous year.
Economic growth
This sector extracts and uses the natural resources of the earth to produce raw materials used by other businesses
Primary sector
Where the emphasis of advertising or sales promotion is to give full information about the product.
Informative advertising
When two or more businesses agree to start a new project together, sharing the capital, the risks and the profits.
Joint venture
A measure of the responsiveness of demand to a change in price.
Price elasticity
Illiquid means that assets are not easily convertible into cash.
Illiquid
The financial records of a firm's transactions.
Accounts
A document which outlines the requirements, qualifications, expertise, physical characteristics, etc. for a specified job.
Job specification
When one business buys out the owners of another business.
Takeover
A system whereby a proportion of the company's profits is paid out to employees.
Profit sharing
Factors that stop effective communication of messages.
barriers
A payment for work, usually paid monthly.
Salary
The buying and selling of goods and services using computer systems linked to the internet,
E-commerce
This is made up of people who want to change business (or government) decisions and they take action such as organizing consumer boycotts.
Pressure group
A document that outlines the responsibilities and duties to be carried out by someone employed to do a specific job.
Job description
An independent person or business that is appointed to deal with the sales and the distribution of a product or range of products.
Agent
When the price is set lower than the competitor's pricing in order to be able to enter a new market.
Penetration pricing
Current assets are owned by a business and used within one year.
Current assets
Money spent on day-to-day expenses which do not involve the purchase of a long-term asset, for example wages or rent.
Revenue expenditure
A period of falling GDP.
Recession
the increase in the average price level of goods and services over time.
Inflation
Opportunity cost is the next best alternative given up by choosing another item.
Opportunity cost
The cost of manufacturing the product plus a profit mark
Cost-plus pricing
Have direct responsibility over people below them in the hierarchy of an organisation.
Line managers
Capital employed is shareholders' equity plus non-current liabilities and is the long-term and permanent capital invested in a business.
Capital employed
______________ of communication: The method.
Medium
Cash flow of a business is the cash inflows and outflows over a period of time.
Cash flow
An additional amount of payment above basic pay as a reward for good work.
Bonus
An written and legal agreement between business partners. Not essential to have it but always recommended.
Partnership agreement
A group of people who are representative of the target market.
Focus group
Cash flow forecast is an estimate of future cash inflows and outflows of a business, usually on a month-by-month basis. This then shows the expected cash balance at the end of each month.
Cash flow forecast
A method of assessing the effectiveness of an employee.
Appraisal
A small, usually specialized, segment of a much larger market.
Niche market
A business that does not have a separate legal identity. Sole traders and partnerships are unincorporated businesses.
Unincorporated business
The number of subordinates working directly under a management.
Span of control
How much something is worth.
Value
A group of workers who have joined together to ensure their interests are protected.
Trade union
The income to a business during a period of time from the sale of goods or services.
Sales revenue
Where shares in the company are given to employees so that they become part owners in the company.
Share ownership
This sector of industry manufactures goods using raw materials provided by the primary sector.
Secondary sector
This is the level of income a taxpayer has after paying income tax.
Disposable income
A group of people who are selected to respond to a market research exercise, such as a questionnaire.
Sample
______________ communication. Inside the company.
Internal
The surplus after total costs have been subtracted from sales revenue.
Profit
This sector of industry provides services to consumers and the other sectors of industry.
Tertiary sector
Where the manager expects to be in charge of the business and to have their orders followed.
Autocratic
A document that records the income of a business and all costs incurred to earn that income over a period of time (for example one year). It is also known as profit and loss account.
Income statement
A legal agreement between employer and employee listing the rights and responsibilities of the workers.
Contract of employment
When consumers keep buying the same brand again and again instead of choosing a competitor's brand.
Brand loyalty
Non-current assets are items owned by the business for more than one year.
Non-current assets
When messages are sent through established channels using professional language.
Formal
These are the gains to the rest of society, other than the business, resulting from business activity.
External benefits
The state of being responsible for something, especially by law.
Liability
Money obtained from within the business itself.
Internal finance
This is the value of income, and it falls when prices rise faster than money income.
Real income
The total value of output of goods and services in a country in one year.
Gross Domestic Product (GDP)
A business owned by one person.
Sole trader
The profit made by a business after all costs have been deducted from sales revenue. It is calculated by subtracting overhead costs from gross profits.
Net profit
Any advertising or promotion which is trying to persuade the consumer that they really need the product and should buy it.
Persuasive advertising
These records the difference between a country's exports and imports.
Balance of payments
Companies that have separate legal status from their owners.
Incorporated business
Cash outflows are the sums of money paid out by a business during a period of time.
Cash outflows
A businesses not owned by the government.
Private sector
Private costs + external costs
Social costs
Money spent on fixed assets which will last for more than one year.
Capital expenditure
This is the name for the merging of two firms.
Integration
When the owners of two businesses agree to join their firms together to make one businesses.
Merger
A business owned by the government on behalf of the people. They serve the needs of society and not profit.
Public sector
The special feature of a product that differentiates it from the products of competitors.
USP
When a vacancy is filled by someone who is not an existing employee and will be new to the business.
External recruitment
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