Business Management- Virtual Business Essay

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Staffing
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The assignment of persons to jobs within a business
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Staffing Level
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The number of people assigned to a job at a particular time
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Wages
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Payment to employees based on hours or days worked
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Cashier
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Person who collects money from customers in a retail establishment
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Stocker
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A person who replenishes shelves in a store.
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Customer Satisfaction
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The opinion of customers about a particular aspect of a business such as customer service
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Promotional Mix
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A mixture of different types of promotions
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Media
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Method used to deliver advertising messages to the public such as TV or radio
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Reach
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The number of people who will see or hear an advertisement
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CPM (Cost per thousand)
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The cost to reach one thousand people who are particular media
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Rotation
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A time period in which a businesses advertisement is played on or more times each day
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Shrinkage
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The money a business uses due to broken damaged expired or stolen inventory
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Shoplifting
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taking items from a retail establishment without paying for them
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Stolen goods
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Products stolen by shoplifters. the value of these items is reported on the income statement under the cost of goods sold.
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Physical Inventory
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A count of all the items in a business. Used to determine if items are missing due to a result of shoplifting or other circumstances.
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Sample Size
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The number of people questioned in a survey. Increasing the sample size of a survey increases costs. Decreasing sample size too far reduces the accuracy of a survey.
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Primary Data
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Data collected for a specific purpose.
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Secondary Data
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Data used for current study but obtained for another purpose or bought from another business.
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Market Research
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The steps taken to collect marketing information required to make intelligent business decisions
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Survey
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A series of questions asked to a selected group of people…
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Segment
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A group of people sharing some common attribute such as age or occupation.
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Market
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A group of similar people of the same type of the products needs or wants who may potentially buy a certain good or service
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Targeting Marketing
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Marketing that attempts to identify reach in search for a particular sub group of the entire market
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Direct /Mail
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Advertising that is mailed to peoples home or work place. It is most often paper based and and includes specific offers such as coupons.
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Inventory
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A total amount of goods a business has. These may be in a back room or out on the sales floor. Sometimes referred to as stock.
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Purchasing Policy
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Policy specifying the amount to purchase of a product and when to purchase it.
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Just-In-Time Inventory
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JIT Inventory. A system usually computerized that links a store to suppliers so that inventory can be purchased automatically as sales are mad. JTI Inventory systems reduce the amount of inventory the store must carry.
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Reorder Point
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A number that indicates that new product should be purchased when inventory falls below a certain level. (Reorder Point)
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Shrinkage
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The money a business loses due to broken damaged expired or stolen inventory.
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Point-of-Purchase
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Display found close to or at the register to promote impulse purchase
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Impulse Products
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Products that you do not specifically go to a store to buy but may buy if you see them
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Products of Necessity
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Products that you need in specifically enter a store to purchase
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Complementary Item
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Products that are all put together. one of the product often enhances the other such as salsa and chips
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Related Merchandise Display
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Display containing complementary products
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Merchandising Space
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Part of the store assigned to products that are kept for selling.
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Revenue
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Revenue is equal to unit sales times price of each unit.
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Balance Sheet
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Shows what you own (assets) and what you owe to others (Liabilities) The difference, the worth of your company, is called equity. Assets always balance with your liabilities plus equity.
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Income Statement
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Shows your revenue and expenses for a given period of time and the difference between them is known as profit. This statement, known as P&L ( Profit and Loss ) is the most frequently used finical statement. It’s your main scorecard over any period- a week, a quarter, a year. When business people refer to “The Bottom Line” they mean the bottom line of this statement, profit.
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Trade Credit
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Credit offered to you by suppliers. The suppliers payment terms allow you to pay for the goods after you receive them.
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Payment Terms
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A suppliers requirement on when to be paid. These are typcially expressed in an abbreviated fashion. For example: 2/10/N/30 means you will get a 2% discount if you pay in 10 days or you can pay the net amount in 30 days.
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Interest Rate
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The percentage of the loan amount that you must pay in interest each year.
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Liability
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The general term for any amount owed to someone
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Accounts Payable
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The amount a business owes to its suppliers at any point in time. This is shown as a liability on the company’s balance sheet.
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Cost
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What is costs your store to purchase a product from a supplier
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Margin
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The difference between your price and the cost for a particular product
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Revenue
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The total sales in dollars of your store over some period of time. Money you collect for thing you sell. Things include sales and dollar sales, it is equal to unit sales X price of each unit
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Profit
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The revenue of your store minus all expenses over some period of time
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Cost-Oriented Pricing
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Setting prices based on cost. Usually prices are set as a multiple of cost, such as 1.2 times the cost
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Demand- Oriented Pricing
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Setting prices based on what the customer is willing to pay
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Competition- Oriented Pricing
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setting prices based on competitors prices. Setting prices lower than a competitor will generally draw more customers to your store
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Turnaround
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An attempt to make an unprofitable business profitable again.

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