Higher Business Management (Full Course) – Flashcards
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Service
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A thing that is done for us
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Wants
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Non-essential things we would like to have
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Needs
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Essential things for survival
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Land
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An economic term meaning natural resources which businesses use
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Labour
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An economic term meaning the workforce of a business
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Capital
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An economic term meaning factories, machines, vehicles, tools etc that a business owns or controls
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Enterprise
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This is the business ideas that an entrepreneur or owner has on how to use land, labour and capital in their business
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Entrepreneur
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The person who develops a business idea and combines the factors of production (land, labour, capital and enterprise). They take the risk of losing their initial investment if the business idea fails.
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Factors of Production
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Land, Labour, Capital and Enterprise
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Cycle of Business
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The constant process of producing goods and services
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Primary Sector
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Businesses involved in extracting natural resources
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Secondary Sector
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Businesses involved in manufacturing & construction
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Tertiary Sector
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Businesses involved in providing services
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De-industrialisation
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The process of manufacturing decline
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Sole Trader
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a business owned by a single person
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Partnership
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a business owned by two or more people
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Public Limited Company
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a buisness witth limited liabilty whose shares are availible to the general public to buy on the stock market
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Private Limited Company
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a company whose shares are not bought and sold on the stock market and can only pass to another person with the agreement of other shareholders
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Franchise
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the right to use a specific business's name and sell its products or services in a given territory.
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Public Corporation
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An organisation created by an Act of Parliament
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Charity
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An organisation created to promote good causes
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Private Sector
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The part of the economy owned by individuals and businesses
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Public Sector
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The part of the economy owned by the government
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Voluntary Sector
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Organistions set up to rise money for good causes, or to provide facilities for their members
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Deed of Partnership
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Contract drawn up between owners
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Memorandum of Association
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Document that regulates a firm's external activities and must be drawn up on the formation of a plc
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Partnership Agreement
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A written agreement among all owners
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Limited Liability
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The responsibility of a business's owners for losses only up to the amount they invest; limited partners and shareholders have limited liability
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Unlimited Liability
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The owner is personally and fully responsible for all losses and debts of the business
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Royalty
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Payment to the holder of a patent or copyright or resource for the right to use their property
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Shareholder
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A person who invests in a corporation by buying stock and is a partial owner
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Stakeholder
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Someone with a key interest in an organisation
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Manager
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Person appointed to supervise and control resources and expenditures
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Employee
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A worker who is hired to perform a job
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Government
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The institution through which a society makes and enforces its public policies
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Local Community
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People who live in an area
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Customer
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Someone who pays for goods or services
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Consumer
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A person who uses goods or services
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Ordinary Shares
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Stock whose holders are given a vote
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Preference Shares
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Stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights
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Share Issue
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Act of introducing more shares onto the market
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Debenture
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Bond issued to secure a loan
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Hire Purchase
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The buying of equipment by paying in instalments, usually including interest.
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Divestment
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Allows an organisation to sell off minor areas of their business and concentrate on the core activities of the organisation
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Loan
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The temporary provision of money (usually at interest)
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Mortgage
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A long-term loan extended to someone who buys property
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Multinational
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A corporation that has manufacturing or service operations in a number of different countries
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Globalisation
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Causing distinctively American norms and values to spread throughout the world
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Dividend
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That part of the earnings of a corporation that is distributed to its shareholders
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Legislation
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A law passed by a governing body
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PESTLEC
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Political, Economic, Social, Technological, Legislation, Environmental, Competitive
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Share Price
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The value of all the assets (stocks) divided by the number of shares
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Stock Exchange
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A market for buying and selling stock
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Corporation Tax
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The tax which private and public limited companies must pay on their profits.
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VAT
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A tax levied on the difference between a commodity's price before taxes and its cost of production. It is currently 20%.
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Income Tax
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A tax on people's earnings
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AGM
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Event where shareholders meet to discuss important decisions
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Diversification
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When organisations in completely different industries combine together.
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Vertical Integration
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Organisations at a different stage in the same industry combine together, for example, an oil refinery integrating with a petrol station
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Horizontal Integration
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When organisations produce the same type of product or provide the same type of service combine together, for example, Halifax and Bank of Scotland = HBOS
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Local Authority
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An administrative unit of local government
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Profit Maximisation
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The aim to make as much profit as possible
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Survival
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A strategy to remain in existence
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Turnover
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The volume of sales measured in pounds
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Growth
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A process of becoming larger or more numerous
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Social Responsibility
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The obligation of organisation management to make decisions and take actions that will enhance the welfare and interests of society as well as the organization.
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Risk
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When you are exposed to the chance of loss or damage
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Suppliers
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Companies that provide material, human, financial, and informational resources to other companies
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Tax Payers
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People who pay a % of their earnings to the Government
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Investors
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A person or group who puts money into a business
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Donor
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Person who makes a gift of property
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Bank
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A financial institution that accepts deposits and channels the money into lending activities
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Grant
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A gift of money to be used for a special purpose
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Business Gateway
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Advisory agency to assist small businesses
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Trade Fair
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An event at which many different companies show and sell their products
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European Union
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An international organization of European countries formed after World War II to reduce trade barriers and increase cooperation among its members
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Inland Revenue
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A board of the British government that administers and collects major direct taxes
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Merger
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The combination of two or more commercial companies
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Takeover
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One investor group buys enough stock in a corporation to gain control of the other corporation
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Demerger
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When organisations cut back and concentrate on only their core activites.
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Management buy-out
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A form of acquisition where a company's existing managers acquire a large part or all of the company.
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Unemployment
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The total number of people out of work, but wanting to work
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Interest Rate
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The percentage of a sum of money charged for its use
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Exchange Rate
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The charge for exchanging currency of one country for currency of another
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Greenpeace
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An international organization that works for environmental conservation and the preservation of endangered species
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Environment
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All of the surrounding things, conditions, and influences affecting the growth or development of living things.
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Alan Sugar
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Owner of Amstrad
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Donald Trump
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American property billionaire
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Richard Branson
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Head of Virgin Group
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Michelle Mone
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Owner of Ultimo Bras
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Anita Roddick
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Founder of the Body Shop
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Recession
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the state of the economy declines
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Bill Gates
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founder of microsoft
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Steve Jobs
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co-founder of Apple
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Sergy Brin & Lawrence Page
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Founders of Google
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Dragons Den
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TV show where inventors pitch ideas for cash
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Peter Jones
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English dragon made his fortune in telecoms
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Duncan Bannantyne
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Scottish dragon, owner of gymns and bars
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Wall Street
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area in lower Manhattan where the New York Stock Exchange is located
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Backward Vertical Integration
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When a business takes over a supplier.
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Forward Vertical Integration
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When a business takes over a customer.
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Divestment
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When a business sells off assets or subsidiary companies to raise finance for growth.
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Outsourcing
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This involves one firm hiring another to supply parts or to do a job instead of the firm doing it themselves.
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Mission statement
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a short, specific written statement of the reason a business exists and what it wants to achieve
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Strategic decision
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a long term decision made by senior managers, concerned with the overall aims and direction of the business, eg selling a new product
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Tactical decision
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a decision made by middle management, usually medium term which supports strategic decision, eg deciding which advertising agency to use to promote a new product
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Operational decision
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a decision that concerns the day-to-day activities of an organisation
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Internal constraints
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the factors that hinder decision-making but are within the control of the business, eg finance
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External constraints
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the barriers that hinder decision-making but are uncontrollable by the business, eg PESTEC factors
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Role of manager
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making decisions to achieve organisation's objectives using available resources
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Interpersonal role
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the manager's responsibility for leading and motivating others
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Informational role
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the manager's responsibility for gathering information from and disseminating information to the stakeholders of the organisation
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Decisional role
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the manager's responsibility for processing information and reaching conclusions
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Planning
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setting a plan of action for the future
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Organising
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gathering and arranging resources to meet plans
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Commanding
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ensuring duties are done properly by informing staff what to do
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Coordinating
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having staff and resources organised to achieve the plan
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Controlling
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making sure everything works according to the plan ie evaluating
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Delegating
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assigning tasks and responsibilities to subordinates
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Motivating
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influencing people to accomplish specific objectives, consisting of 4 components: leadership, group dynamics, communication, and organisational change
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POGADSCIE
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the 9 steps in a stuctured decision making process
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SWOT analysis
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a planning tool used for identifying internal strengths and weaknesses and examining external opportunities and threats
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PESTEC factors
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political, economic, social, technological, environmental and competitive influences on an organisation
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Quality decision
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depends on manager's capability of making good decisions and quality and quantity of information available
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Strengths
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internal areas or activities in which the organisation performs well
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Weaknesses
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internal areas or activities in which the organisation performs poorly
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Opportunities
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external areas or activities that the organisation could profitably be involved with in the future
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Threats
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external areas or activities that could adversely affect the organisation's objectives in the future
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Delegation
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The passing of authority to perform a role or set of tasks to someone lower down in the hierarchy of the company. The responsibility remains with the person passing authority, but the work is carried out by the person further down the chain of command.
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Span of control
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The number of subordinates that are controlled by a manager, i.e. the number of people who are directly accountable to a manager
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Levels of hierarchy
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The organisational structure based on a ranking system
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Flat
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Firms who have fewer levels in their organisational hierarchy. This will usually mean that they have a higher span of control.
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Tall organizations
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Firms who have more levels in their organisational hierarchy. This will usually mean that they have a lower span of control.
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Chain of command
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A formal line of authority through which order are passed down in an organisation.
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Authority
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The power over others by sanctioned personnel within an organisation.
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Responsibility
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Refers to who is in charge of whom, such as the marketing Manager of an organisation being responsible for the team of marketers.
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Empowerment
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Granting workers the authority to be in charge of their own jobs, to make decisions and to execute their own ideas.
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Delayering
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This involves reducing staff levels by cutting out levels of management to flatten the structure.
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Downsizing
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This involves removing certain areas of the organisation's activities by closing factories or merging divisions together.
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Centralised
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When the vast majority of decision-making is done by a very small number of people, usually the senior management team, who hold on to decision-making authority and responsibility.
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Decentralised
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When some decision-making authority and responsibility is passed on to others in the organization.
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Accountability
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The extent to which a person is held responsible for the success or failure of a task.
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Functional Grouping
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Departments where staff have similar skills and expertise and do similar jobs.
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Product/Service Grouping
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Divisions or departments where each deals with a different product or product range, for example, the Arcadia group with Burton, Top Shop, Debenhams etc.
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Customer Grouping
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Divisions deal with different customers, for, example, banks have different people to deal with personal customers and business customers.
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Place/Geographical Grouping
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Staff are divided into divisions, each dealing with a different geographical area.
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Entrepreneurial Structure
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Decisions are made by a few people at the core of an organisation.
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Matrix Structure
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This is often used when a team is needed to complete a specific task and team members come from different functional areas.
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Line Relationship
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This exists between a manager and his/her subordinates.
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Lateral Relationship
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This exists between staff on the same horizontal level of an organisation.
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Corporate Culture
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The values, beliefs and norms relating to the company or organisation that are shared by all its staff.
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Informal Relationships
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These are developed between staff at breaks, during work and when socialising.
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Internal Organisation
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The way in which an organisation may group its staff and work.
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Organisation Chart
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This shows the formal structure of an organisation.
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Characteristics of high quality information
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Timely - information must be available when needed and be up-to-date Objective - should be free from bias Accurate - the information must be correct Appropriate - the information should be for the purpose required Available - should be easily obtained Complete - nothing should be missing Concise - should be short and to the point Cost effective - value gained from information must be greater than the cost of obtaining it
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Quantitative Information
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Information that can be measured and which is normally expressed in numerical form.
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Qualitative Information
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Information that is expressed in words and is descriptive. It involves judgements or opinions.
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Data
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A collection of facts or quantities that has been assembled in some formal manner with the objective of processing it into specific information.
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Information
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Data that has been processed into a form that assists in decision-making and planning.
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Primary Information
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Information which has been collected first hand by an organisation for their own, specific purpose. Usually this is by observation, interview or questionnaire.
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Advantages of primary information
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It should be correct for the purpose for which it was gathered because it was gained first hand Likely to be up-to-date Source of information is known
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Disadvantages of primary information
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Research costs may be high Respondents may have lied May be difficult and time consuming to collect May have researcher bias
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Secondary Information
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Information which has been gathered for one purpose then used for another. It is gathered from published sources such as newspapers, textbooks and the Internet.
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Advantages of secondary information
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Can be inexpensive and esay to access A wide variety of sources is available
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Disadvantages of secondary information
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It may not be relevant as it was collected for one purpose and used for another May have author bias May be out of date Is also available to competitors
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Internal Information
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Information which has been taken from the organisation's internal records, for example, financial records.
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External Information
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Information which is gathered from sources outside the organisation, for example, goverment statistics, competitors' annual accounts.
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Types of ICT
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Networks Email Videoconferencing Webcams Internet E-commerce Interactive DVD Computer Aided Manufacture (CAM)
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Sources of Information
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Primary Secondary Internal External
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Types of Information
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Written Oral Pictorial Graphical Numerical Quantitative Qualitative
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Uses of information in business
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Monitor and control the business Assist with decision-making Measure performance Idenitfy new business opportunties
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Types of software
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Databases Spreadsheet Word Processing Desktop Publishing Presentation Packages Compter Aided Design (CAD)
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Uses of ICT
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Assists with decision-making Assists with providing information to staff Assists in maintaining accurate business records Assists in effective communication within an organisation
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HRM
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Ensures that a business has the right staff, with the right skills, at the right time, who are committed to the business and motivated to give their best.
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HR Planning
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Identifies the future human resource needs of a business and plans to have the right number of staff, with the right skills at the right time
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A human resource audit
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A survey of the skills present in the existing workforce
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Natural wastage
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Staff leaving ''naturally'' due to retirement or to take up new jobs
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Redundancy
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Occurs when workers are let go from a job because there is no longer enough work for them to do. It is through no fault of their own
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Voluntary redundancy
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Offered to those who wish to apply for it. Various financial incentives include cash payments and earl retirement payments may encourage employees to volunteer
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Compulsory
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Arise when employees are not given a choice
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Dismissal
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Being sacked from a job due to incompetence, dishonesty or breach of company discipline
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Person specification
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Describes the qualities required by the person who will fill the job description
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Two external recruitment methods
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Internet websites Newspapers/magazines
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Covering letter
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A short letter highlighting why you think you are suitable for the job and requesting an interview
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A CV
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A short document summarizing your education, qualifications, training and experience
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Equal opportunities
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Means that all applicants of equal ability have an equal chance of being hired or promoted
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Induction
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The general introduction of new staff into a job or organisation
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Staff training
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Ensures that employees have the up-to-date skills and knowledge needed to do their present work
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On-the-job training
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Teaches skills and knowledge through practical work
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Off-the-job training
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Refers to all types of training and education apart from that occurring in the immediate workplace
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Multiskilling
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Training workers to be able to undertake a wide range of different jobs, instead of just one
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Staff development
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Provides staff with additional skills that will enable them to take on new, more challenging work in the future
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Performance appraisal
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The process of setting performance standards for each employee, and then assessing their performance over a period of time, such as six months or a year.
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Flat rate pay
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Employees receive an agreed set rate of pay per week/month based on a standard number of hours worked
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Time rate pay
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Employees are paid a set amount for each hour they work. Overtime work is usually paid at a higher rate
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Piece rate pay
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Employees are paid for each item produced that meets the desired quality standard
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Bonus payments
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Give employees a share of the profits resulting from their increased effort or efficiency
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Commission
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An extra payment based on the percentage of sales achieved
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Benefits in kind
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Non cash payments to staff
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Profit sharing schemes
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Firms share part of their profits with employees through payments in addition to wages
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Share-ownership schemes
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Offer employees free or low price shares in the company, allowing them to become part-owners of the company. This entitles staff to dividends from company profits
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Job satisfaction
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The degree to which employees feel positive about their job, enjoy doing it and want to continue working with the firm
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Flexitime
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Means allowing employees to choose their own start and finish time as long as minimum number of hours are worked
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Harassment
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Behaviour such as unwelcome comments, looks, jokes, suggestions or physical contact that causes stress or intimidation for staff
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Job sharing
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Allows two people to share one job
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Job rotation
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Means regularly moving staff around from one job to another
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Job enlargement
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Increasing the number of different tasks involved in a job
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Job enrichment
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Providing employees with work requiring greater responsibility, control and decision-making
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Employee empowerment
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An advanced form of job enrichment and means providing staff with a specific goal, deadline and resources but the freedom to decide how they reach that goal
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Industrial relations
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The quality of the relations that exist between the owners and the employees in an organisation
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Labour turnover
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The rate at which employees leave a firm
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Industrial democracy
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Means giving workers the power to participate and influence management decision-making
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Consultative councils
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Provide a regular forum where managers can meet with representatives of the workers and discuss the affairs of the business
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Works councils
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Representatives of the workers have an input into the plans and strategy of the firm
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Worker directors
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Representatives of the employees elected to sit on the board of directors in their companies
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Mortgage
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a loan secured on property
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Finance
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the management of money and credit and banking and investments
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Current Account
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account used for day-to-day banking
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Savings Account
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a bank account that accumulates interest
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Credit Card
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a card (usually plastic) that assures a seller that the person using it has a satisfactory credit rating and that the issuer will see to it that the seller receives payment for the merchandise delivered
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Personal Loans
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a loan given to a consumer by a bank
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Overdraft
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when an account is in excess of the credit balance
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Currency
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Form of money used by nations
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Insurance
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protection against future loss
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Bank
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a financial institution that accepts deposits and channels the money into lending activities
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Bank Account
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a fund that a customer has entrusted to a bank and from which they can make withdrawals
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RBS
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Royal Bank of Scotland
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Transaction
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An exchange of money in or out of a bank account or during a purchase.
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Deposit
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money deposited in a bank
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Withdrawal
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the act of taking out money or other capital
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Debit
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a transaction that takes money from an account
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Credit
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an arrangement to receive cash, goods, or services now and pay for them in the future
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Interest
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a fixed charge for borrowing money
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Balance
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the difference between the totals of the credit and debit sides of an account
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Statement
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a document showing credits and debits
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Bank Mandate
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A document given by a customer of a bank to the bank, requesting that the bank should open an account in the customer's name and honour cheques and other orders for payment drawn on the account.
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Cheque
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a written order directing a bank to pay money
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Cash
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money in the form of bills or coins
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Savings
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money set aside, generally in a bank or investments. which earns interest
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Account
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a statement of recent transactions and the resulting balance
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Fixed Rate
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a set rate of return
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Variable Rate
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a rate of return that changes
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Bank Application Form
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a document allowing a customer to open an account
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Pound
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Currency of the UK
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Euro
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Currency of the European Union
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Dollar
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US Currency
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Ringgitt
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Currency of Malaysia
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Cedi
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Currency of Ghana
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Yen
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Currency of Japan
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Swiss Franc
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Currency of Switzerland
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Real
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Currency of Brazil
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Ariary
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Currency of Madagascar
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Exchange Rate
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the charge for exchanging currency of one country for currency of another
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Budget
answer
a plan for spending money
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Expenses
answer
all costs or bills related to the business
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Income
answer
earnings from work or investments
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Expenditure
answer
the act of spending money for goods or services
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Rent
answer
a regular payment by a tenant to a landlord for use of some property
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Council Tax
answer
a UK tax levied on households by local authorities
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Income Tax
answer
a tax on people's earnings
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Hire Purchase
answer
The buying of equipment by paying in instalments, usually including interest.
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Utility Bill
answer
payment of gas and electricity
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Repayments
answer
the act of returning money received previously
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Essential expenses
answer
financial outlays that are needed
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Non-essential expenses
answer
financial outlays that are desired
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Cash Budget
answer
an estimate of the actual money received and paid out for a specific period
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Grant
answer
the act of providing a subsidy, normally from the Government
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Wages
answer
money earned for doing work
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Overspending
answer
puchasing more than your budget allows
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Gross Pay
answer
the total amount of an employee's earnings before deductions are taken out
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Net Pay
answer
the total earnings paid to an employee after payroll taxes and other deductions
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P.A.Y.E.
answer
Pay As Your Earn
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HSBC
answer
Hong Kong and Shanghai Bank
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Borrow
answer
to get temporary use of
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Capital
answer
wealth in the form of money or property owned by a person or business and human resources of economic value
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Buy to Let Mortgage
answer
loan on property for landlords
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Interest Only Mortgage
answer
loan on property with no repayment of capital
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Job Description
answer
a written description of the basic tasks, duties, and responsibilities required of an employee holding a particular job
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Trading, Profit and Loss Account
answer
Account which works out the gross profit/loss
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Balance Sheet
answer
A financial statement that reports assets, liabilities, and owner's equity on a specific date.
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Annual Accounts
answer
yearly record of the trading results of your company
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Debtors
answer
Individuals or organizations that owe money.
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Creditors
answer
Those to whom a business owes money.
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Working Capital
answer
the difference between current assets and current liabilities
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Drawings
answer
Amounts of money or goods removed from the business by the owner.
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Profitability
answer
to show how proftiable the organisation is
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Liquidity
answer
being in cash or easily convertible to cash
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Efficiency
answer
skillfulness in avoiding wasted time and effort
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Ratio Analysis
answer
calculations that measure an organization's financial health
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Gross Profit Percentage
answer
GROSS PROFIT divided by NET SALES
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Mark-up Ratio
answer
Measures how much has been added to the cost of the goods as profit. It is expressed as a percentage.
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Net Profit Percentage
answer
Net profit divided by sales x 100
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Return on Capital Employed
answer
Net Profit / Capital Employed x 100
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Current Ratio
answer
current assets/current liabilities
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Acid Test Ratio
answer
Current Assets-Stock/Current Liabilities
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Budget
answer
a plan for making and spending money
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Inland Revenue
answer
a board of the British government that administers and collects major direct taxes
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3 Stages of The Operating Systems
answer
- Input - Process - Output
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Stage 1 - Input
answer
Collecting materials and other inputs: Includes raw materials, equipment/machinery an + labour which are directly put into production.
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Stage 2 - Process
answer
Converting materials into something useful: Involves using the raw materials, equipment + labour 2 make the product/provide the service
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Stage 3 - Output
answer
Finished products: The actual good/service for sale.
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What to Consider When Choosing a Supplier
answer
- Quality - of raw materials supplied - acceptable+/consistent? - Quantity - of raw materials required - can they meet needs? - Price - can they give lowest price for desired quality + quantity? - Location - may result in delivery charges/problems - Reliability - can they deliver goods on an ongoing basis? - Time - can they deliver within the required time?
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Type of Stock
answer
- Raw Materials - flour, eggs, lettuce - Work in Progress - half made cakes, half made sandwiches - Finished Goods
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Holding too Much Stock =
answer
- high storage cost - high maintenance cost - high security cost - too much expensive space taken up - money tied up in stock - could be used somewhere else - stocks unsold - deteriorate, spoiled, stolen
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Holding too Little Stock =
answer
- can't meet orders = lose customers - cant cope with sudden increase in demand - out of stock = customers go elsewhere - poor reputation gained - if cant cope with customer demands
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Storage of Stock
answer
Centralised Storage Decentralised Storage
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Benefits of Centralised Storage
answer
- improved security of stock as easier 2 oversee one area with store person, CCTV, locks, etc. - cheaper 2 provide necessary security + storage in one central area - than in several
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Benefits of Decentralised Storage
answer
- stock is always "at hand" when needed
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Economic (maximum) Stock Level
answer
- this is the stock level that permits activities 2 continue without interruption
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Minimum Stock Level
answer
- this is the stock level that ensures that there will always be enough tock for production
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Re-order Stock Level
answer
- this is the level at which new stock should be ordered
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Re-order Quantity
answer
- this is the amount of stock required 2 return stock levels 2 economic stock level on the same day as new stock arrives
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Just In Time Production
answer
It is when materials are purchased just in time to be used in the production process. Finished goods are produced just in time to be despatched to the customer - if there is no demand there is no production - requires close relationship with reliable suppliers
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Types of Production
answer
Capital Intensive Labour Intensive Automation
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Capital Intensive
answer
- is where mostly machines are used e.g. soft drinks industry
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Labour Intensive
answer
- one which uses mainly people (+ its workforce) e.g. clothes manufacturing
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Automation
answer
- where operations are controlled by computers e.g car industry
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Quality
answer
- Quality Control - Quality Assurance - Quality Circles - Quality Standards - Benchmarking
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Quality Control
answer
- products checked at the end of the production process
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Quality Assurance
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- products checked at each stage in the process, errors can be rectified, waste is reduced
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Quality Circles
answer
- group of workers + managers meet 2 discuss where they can make improvements
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Quality Standards
answer
- are awards given to show level of quality has been met/approved
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Benchmarking
answer
- use methods identified as best practice in industry, aim to match processes + standards
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Distribution
answer
- Road - Rail - Air - Sea
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Road
answer
- allows door 2 door deliveries, 24hrs. a day - refrigerated vehicles for food, etc. - restrictions of hrs lorry drivers can work - accounts for 80% of goods transported in the U.K.
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Rail
answer
- more environmentally friendly - faster
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Air
answer
- can be expensive - product required to reach destination fast is better using this - products requiring quick deliveries
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Sea
answer
- useful for bulky products - however, slow
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Labour Payment Systems
answer
- Piece Rate - Timer Rate - Bonus Rate - Flat Rate - Commission - Overtime
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Piece Rate
answer
- workers are paid per item they produce - often used in factories - yhe more a worker produces, the higher the pay - acts as an incentive for employees 2 work hard - supervision is requires so that workers do not sacrifice quality for quantity
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Timer Rate
answer
- worker are paid by the hour - often used in the service sector - it is simple 2 calculate for the employer - no incentive 2 produce quality work
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Bonus Rate
answer
- workers are paid a basic rate with additional payments for targets being met - a bonus is added onto their normal pay
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Flat Rate
answer
- workers are paid a set salary per annum - this is split into 12 equal payments - it gives employees a guaranteed monthly income = security
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Commission
answer
- workers are paid a percentage of the products sales value - e.g. cars salesmen usually use this method - either added onto a basic pay/as the sole income - used as an incentive 2 motivate staff to sell more - supervisors must ensure everything is sold by the book
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Overtime
answer
- when employees work a set amount for hrs. , overtime may be offered - employees will be paid more for this overtime
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Marketing
answer
process of identifying, analysing and satisfying customer needs
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Hall Test
answer
sampling products and offering feedback
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Field Research
answer
first hand research that is conducted in real world locations
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Desk Research
answer
This is data which has been previously gathered for another purpose.
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Survey
answer
the collection of data by having people answer a series of questions
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Marketing Mix
answer
Product, Price, Place, Promotion is also known as
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Product
answer
goods offered for sale
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Price
answer
what you charge for your product/service
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Place
answer
where a product/service is sold
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Promotion
answer
the process of informing customers
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Brand
answer
a copyrighted name given to a product or service
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Market Segmentation
answer
the process of separating, identifying, and evaluating the layers of a market in order to identify a target market.
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Philip Kotler
answer
Author of best selling Marketing Management. Dedicates every book "To my darling wife, Nancy"
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Theodore Levitt
answer
this man suggested that firms should standardize all of their products and services for all of their worldwide markets. Author of Marketing Myopia
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Market Share
answer
Percentage of a total market that a product or business has
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Consumer market
answer
all potential customers who will buy a product for personal use.
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Industrial Market
answer
Buyers who want a product for use in making other products.
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Product Orientation
answer
means that the business decisions are based on what it can produce
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Market Orientation
answer
is the implementation of the marketing concept. Being marketing orientated is more than just being customer-led. It requires the full support of the organization to be fully implemented in the long term and, indeed, may need a complete change in an organization's culture.
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Goods
answer
tangible products that we use to satisfy our wants and needs
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Services
answer
intangible products
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Trade Descriptions Act
answer
a law whereby a good or service must do what the advertising claims
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Monopolies and Mergers Act
answer
a law aimed at preventing domination of a market by one or two firms
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ITC
answer
Independent Television Comission
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Monopoly
answer
(economics) a market in which there are many buyers but only one seller
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Oligopoly
answer
a market structure in which a few large firms dominate a market
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Product substitutes
answer
in economics, when a good or service has a close rival that can take it's place
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USP
answer
Unique selling point
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ESP
answer
emotional selling point
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Channel of distribution
answer
the route a product follows and the businesses involved in moving a product from the producer to the final consumer
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Direct selling
answer
selling to consumers in their homes or where they work
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Retailer
answer
an organization that sells to ultimate consumers
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Wholesaler
answer
someone who buys large quantities of goods and resells to merchants rather than to the ultimate customers
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Agent
answer
a businessman who buys or sells for another in exchange for a commission
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Importer
answer
agent who brings good into a country from another country
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Exporter
answer
a businessperson who transports goods abroad (for sale)
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Buying habits
answer
customer preferences as shown by an analysis of the way they shop
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Price skimming
answer
involves charging a high price to recover costs and maximize profit as quickly as possible.
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Penetration pricing
answer
Pricing strategy in which the seller charges a low price on a new product to discourage competition and gain market share.
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Destroyer pricing
answer
Prices are lowered to weaken competition by forcing them to lower their prices
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Promotional Pricing
answer
Temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales
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Premium Pricing
answer
maintaining high prices to create an exclusive image
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Demand-orientated pricing
answer
a pricing strategy that changes due to differences in consumer demand, or time/season
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Core product
answer
All the benefits the product will provide for consumers or business customers.
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Augmented product
answer
Additional services and benefits like credit, installation or warranty
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Product mix
answer
all the products a company makes or sells.
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Product range
answer
the combination of different products a business manufactures and sells
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Product life cycle
answer
a theoretical model of what happens to sales and profits for a product class over time
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Prototype
answer
an early or original product upon which later products are based
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Test market
answer
Selling a product on a limited bases in a defined ara to help decide the effectiveness or potential marketing actions
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Idea Generation
answer
The first step of product development in which marketers brainstorm for products that provide customer benefits and are compatible with the company mission.
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Extension strategies
answer
occurs when marketing changes are made to prevent sales falling
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Product Portfolio
answer
All the products a company has available for customers at any one time.
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Boston Box
answer
Marketing tool that includes cash cows, question marks, dogs, and stars
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Branding
answer
establishing an identity for a range of products
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Repeat purchases
answer
when customers come back and buy again
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Own Brands
answer
Many large retailers make products and brand them under there own name
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Informative advertising
answer
advertising that provides information about a product to consumers
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Persuasive advertising
answer
advertising designed to appeal to your emotions to influence you to buy, but does not provide much information
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Corporate advertising
answer
advertising intended to establish a favorable attitude toward a company as a whole.
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Sales Promotion
answer
Short-term incentives to encourage the purchase or sale of a product or service.
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Into the pipeline
answer
Deals that encourage the retailer to purchase from the manufacter
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Out of the pipeline
answer
Deals that encourage end custumers to purchase the product
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Point of Sale
answer
places where goods are sold to the public - shops, stores, kiosks, market stalls, etc
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Dealer Loader
answer
A gift, often part of a display, given to a retailer that purchases a specified quantity of merchandise.
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BOGOF
answer
buy one get one free
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PR
answer
Public Relations
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Packaging
answer
Materials used to wrap or protect goods.
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Merchandising
answer
Displays and presentations used to promote and sustain certain products
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Mass Marketing
answer
using one marketing strategy to reach all customers
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Niche Marketing
answer
the process of finding small but profitable market segments and designing or finding products for them.
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Market Growth
answer
The percentage change in the size of the market
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Personal Interview
answer
Method of collecting data in which subjects are more likely to participate, but costly and subjects may not divulge personal info.
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Postal Survey
answer
a survey conducted by the mail
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Telephone Survey
answer
a research method in which respondents answers to a questionaire are recorded by interviewers on the phone.
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Quota sampling
answer
includes the same proportion of individuals with certain characteristics as found in the population. researcher uses his/her individual judgment to select respondents
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Random sampling
answer
a method of poll selection that gives each person in a group the same chance of being selected
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Consumer panel
answer
a group of consumers who provide information on a continuing basis
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Focus group
answer
Group of individuals brought together for the purpose of asking them questions about a product or marketing strategy.
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Hall test
answer
sampling products and offering feedback
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Club Card
answer
Tesco's Loyalty Card
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EPOS
answer
Electronic point of sale
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Internet
answer
a computer network consisting of a worldwide network of computer networks that use the TCP/IP network protocols to facilitate data transmission and exchange
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Mr McGowan's Blog
answer
www.mrmcgowan.blogspot.com
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Bill Gates
answer
founder of microsoft
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Steve Jobs
answer
co-founder of Apple
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Anita Roddick
answer
Founder of the Body Shop
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Tom Farmer
answer
Founder of Kwik Fit
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Tom Hunter
answer
Scottish entrepreneur, owned and sold Sports Division
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Alan Sugar
answer
Owner of Amstrad
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Donald Trump
answer
American property billionaire
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Peter Jones
answer
English dragon made his fortune in telecoms
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Michelle Mone
answer
Owner of Ultimo Bras
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Deborah Meaden
answer
Dragon famous for Holiday homes/parks
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Rachel Elnaugh
answer
Dragon who owned Red Letter Days but went bust
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Doug Richard
answer
US born Dragon who runs Library House
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Theo Paphitis
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Cypriot dragon who owns Rymans stationers
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Duncan Bannantyne
answer
Clydebank born Scottish dragon, owner of gymns and bars
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Dave Whelan
answer
Wigan Athletic's JJB Sports owner
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John Caudwell
answer
Owner of Phones 4 U
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Ann Gloag
answer
Stagecoach owner
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David Murray
answer
Ayr born Scottish businessman, involved in football, basketball and metals.
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Lee Scott
answer
Wal-Mart CEO
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Roger Smith
answer
Infamous CEO of General Motors in the 1980s. Chased by film-maker Michael Moore for years!
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Ingvar Kampread
answer
Founder of IKEA
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Henry Ford
answer
United States manufacturer of automobiles who pioneered mass production (1863-1947)
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Philip Kotler
answer
Author of best selling Marketing Management. Dedicates every book "To my darling wife, Nancy"
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Douglas McGregor
answer
He formulated his theory X and Theory Y, Classical =X and a early stages of human relations. Theory Y is more of a realistic view he believed workers are.
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Henri Fayol
answer
French management theorist who is credited with founding the functions of managers
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Frederick Taylor
answer
an American efficiency engineer who wrote "The Principles of Scientific Management", which earned him the title "father of scientific management"
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Abraham Maslow
answer
Psychologist who invented the Hierarchy of needs
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Tom Peters
answer
With Robert A. Waterman wrote the seminal In Search of Excellence
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Michael E. Porter
answer
Author and Harvard Business School Professor. Created the Five Forces, and is an expert in Competitve Strategy
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Adam Smith
answer
Scots economist and author of The Wealth of Nations
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Elton Mayo
answer
Hawthorne Experiment 1928, founder of the human relations movement
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Peter Drucker
answer
Management guru who was an advocate of Management By Objectives (MbO)
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James Caan
answer
Dragon who teams up with Duncan Bannantyne often
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Richard Farleigh
answer
Australian dragon who specialised in start-ups
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Jack Welch
answer
Legendary CEO of General Electric
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Theodore Levitt
answer
this man suggested that firms should standardize all of their products and services for all of their worldwide markets. Author of Marketing Myopia
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Andrew Carnegie
answer
Dunfermline born United States industrialist and philanthropist who endowed education and public libraries and research trusts (1835-1919). Owned US Steel
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Evan Davis
answer
BBC presenter of Dragons Den
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Richard Pascale
answer
Author of The Art of Japanese Management
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W. Edwards Deming
answer
US quality guru whose ideas were accepted in Japan
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Joseph Juran
answer
Romanian born US quality guru, famous for Pareto Principle
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Henry Mintzberg
answer
Divided manager's job into three types: interpersonal, informational, decisional
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Tim Berners Lee
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Father of the World-Wide Web. Wrote the first web-browser editor
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Alexander Graham Bell
answer
Scottish born inventor of the telephone (1847-1922)
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John Logie Baird
answer
Helensburgh born Scottish inventor; 1926--first to demonstrate a television system before a gathering of 50 scientists in his attic workshop, stretched cable from London to Glasgow and London to New York
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James Watt
answer
Scottish engineer and inventor whose improvements in the steam engine led to its wide use in industry (1736-1819)
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Larry Page
answer
American computer scientist, co-founded Google, the worlds largest internet company
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Sergey Brin
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co-founder of Google
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Ray Kroc
answer
Milkshake salesman that turned a small eatery into the McDonalds mega-franchise
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Warren Buffett
answer
The Oracle of Omaha,Chairman of Berkshire Hathaway . A billionnaire investor.
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Carlos Slim
answer
Mexican engineer, businessman, and philanthropist
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Charles Handy
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British management guru specialising in the future of work
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John Adair
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Northern Irish management guru focusing on Leadership
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Rosabeth Moss Kanter
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Female business guru who is a lead advocate for empowerment
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Roman Abramovitch
answer
Russian billionaire, owns Chelsea FC
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John Madejski
answer
Founder of Auto Trader. Owns Reading FC
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Igor Ansoff
answer
Russian born management guru who invented the growth matrix
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Meredith Belbin
answer
Famous for identifying team roles
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Frederick Herzberg
answer
the founder of the two-factor motivational theory
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Geert Hofstede
answer
Dutch engineer who created a framework of national and organisational culture
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Edward De Bono
answer
Father of lateral thinking
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Alfred Chandler
answer
Guru who believes structure must always follow strategy
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E. F. Schumacher
answer
German economist who worked for British Coal Board who belives Small is Beautiful
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Alfred Sloan
answer
Led General Motors from 1920s-50s. Father of decentralisation.
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Gary Hamel
answer
Guru who focuses on Core Competencies. Writes with C. K. Prahalad
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Sumantra Ghoshal
answer
Indian born guru who with Christopher Bartlett developed idea of Transnational Corporation
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Business
answer
Any organisation working towards a set of objectives
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Goods
answer
Things we can see and touch
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Durable Goods
answer
Things we can use again and again
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Non-durable goods
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Things we can use only once
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Service
answer
A thing that is done for us
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Wants
answer
Non-essential things we would like to have
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Needs
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Essential things for survival
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Land
answer
An economic term meaning natural resources
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Labour
answer
An economic term meaning employees
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Capital
answer
An economic term meaning factories, machines, vehicles, tools etc
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Enterprise
answer
The human effort that creates goods and services
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Entrepreneur
answer
The person who brings together the factors of production
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Factors of Production
answer
Land, Labour, Capital and Enterprise
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Cycle of Business
answer
The constant process of producing goods and services
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Primary Sector
answer
Businesses involved in extracting natural resources
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Secondary Sector
answer
Businesses involved in manufacturing & construction
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Tertiary Sector
answer
Businesses involved in providing services
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De-industrialisation
answer
The process of manufacturing decline
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Sole Trader
answer
a business owned by a single person
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Partnership
answer
a business owned by two or more people
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Public Limited Company
answer
a buisness witth limited liabilty whose shares are availible to the general public to buy on the stock market
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Private Limited Company
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a company whose shares are not bought and sold on the stock market and can only pass to another person with the agreement of other shareholders
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Franchise
answer
the right to use a specific business's name and sell its products or services in a given territory.
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Public Corporation
answer
An organisation created by an Act of Parliament
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Charity
answer
an organisation created to promote good causes
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Private Sector
answer
the part of the economy owned by individuals and businesses
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Public Sector
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the part of the economy owned by the government
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Voluntary Sector
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organistions set up to rise money for good causes, or to provide facilities for their members
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Deed of Partnership
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contract drawn up between owners
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Memorandum of Association
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Document that regulates a firm's external activities and must be drawn up on the formation of a plc
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Partnership Agreement
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a written agreement among all owners
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Limited Liability
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the responsibility of a business's owners for losses only up to the amount they invest; limited partners and shareholders have limited liability
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Unlimited Liability
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The owner is personally and fully responsible for all losses and debts of the business
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Royalty
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payment to the holder of a patent or copyright or resource for the right to use their property
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Articles of Association
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The internal 'rule book' that, according to corporate legislation, every incorporated firm must have and work by. And which, along with memorandum of association, forms the constitution of a firm.
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Shareholder
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a person who invests in a corporation by buying stock and is a partial owner
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Stakeholder
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someone with a key interest in an organiszation
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Manager
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person appointed to supervise and control resources and expenditures
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Employee
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a worker who is hired to perform a job
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Government
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the institution through which a society makes and enforces its public policies
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Local Community
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people who live in an area
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Customer
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someone who pays for goods or services
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Consumer
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a person who uses goods or services
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Ordinary Shares
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stock whose holders are given a vote
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Preference Shares
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stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights
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Prospectus
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A formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details about an investment offering for sale to the public.
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Share Issue
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act of introducing more shares onto the market
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Debenture
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bond issued to secure a loan
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Hire Purchase
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The buying of equipment by paying in instalments, usually including interest.
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Divestment
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act of selling assets to make cash
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Loan
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the temporary provision of money (usually at interest)
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Mortgage
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a long-term loan extended to someone who buys property
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Pressure Group
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a group of people who try actively to influence legislation
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Multinational
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a corporation that has manufacturing or service operations in a number of different countries
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Globalisation
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causing distinctively American norms and values to spread throughout the world
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Division of Labour
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the breaking up of a production process into a series of specialized tasks, each by a different worker.
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Dividend
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that part of the earnings of a corporation that is distributed to its shareholders
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Registrar of Companies
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the
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Legislation
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a law passed by a governing body
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PESTEC
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Political, Economic, Social, Technological, Environmental, Competitive
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Share Price
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the value of all the assets (stocks) divided by the number of shares
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Stock Exchange
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A market for buying and selling stock
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Corporation Tax
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The tax which private and public limited companies must pay on their profits.
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VAT
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a tax levied on the difference between a commodity's price before taxes and its cost of production
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Income Tax
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a tax on people's earnings
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AGM
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Event where shareholders meet to discuss important decisions
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EGM
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Meeting where an unusual event has brought shareholders together
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Diversification
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A risk management technique that mixes a wide variety of investments within a portfolio.
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Vertical Integration
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when a firm would strive to control all aspects of production (from acquisition of raw materials to the finished product)
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Horizontal Integration
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absorption into a single firm of several firms involved in the same level of production and sharing resources at that level
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Local Authority
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an administrative unit of local government
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Profit
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the excess of revenues over outlays in a given period of time (including depreciation and other non-cash expenses)
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Profit Maximisation
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the aim to make as much profit as possible
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Survival
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a strategy to remain in existence
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Turnover
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the volume of sales measured in pounds
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Growth
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a process of becoming larger or more numerous
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Social Responsibility
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The obligation of organization management to make decisions and take actions that will enhance the welfare and interests of society as well as the organization.
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Risk
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expose to a chance of loss or damage
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Suppliers
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Companies that provide material, human, financial, and informational resources to other companies
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Tax Payers
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People who pay earnings to the Government
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Investors
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a person or group who puts money into a business
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Trustee
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members of a governing board
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Donor
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person who makes a gift of property
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Bank
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a financial institution that accepts deposits and channels the money into lending activities
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Building Society
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British equivalent of United States savings and loan association
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Grant
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a gift of money to be used for a special purpose
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Business Gateway
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advisory agency to assist small businesses
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Trade Fair
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an event at which many different companies show and sell their products
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European Union
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an international organization of European countries formed after World War II to reduce trade barriers and increase cooperation among its members
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Inland Revenue
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a board of the British government that administers and collects major direct taxes
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Merger
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the combination of two or more commercial companies
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Takeover
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One investor group buys enough stock in a corporation to gain control of the other corporation
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Demerger
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when a firm divides into more than one firm
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Management buy-out
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a form of acquisition where a company's existing managers acquire a large part or all of the company.
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Unemployment
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the total number of people out of work, but wanting to work
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Interest Rate
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the percentage of a sum of money charged for its use
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Exchange Rate
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the charge for exchanging currency of one country for currency of another
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Greenpeace
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an international organization that works for environmental conservation and the preservation of endangered species
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Environment
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all of the surrounding things, conditions, and influences affecting the growth or development of living things.
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Grey Pound
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the aging consumer market is often called this
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CAM
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computer aided manufacture
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CAD
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Computer Aided Design
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Robotics
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Mechanical devices programmed to do routine tasks
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Automation
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the act of implementing the control of equipment with advanced technology
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Assembly Line
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In a factory, an arrangement where a product is moved from worker to worker, with each person performing a single task in the making of the product.
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Hardware
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(computer science) the mechanical, magnetic, electronic, and electrical components making up a computer system
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Software
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(computer science) written programs or procedures or rules and associated documentation pertaining to the operation of a computer system and that are stored in read/write memory
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IT
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information technology
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ICT
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Information and Communications Technologies
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Advertising
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any paid form of communication through mass media directed at identified consumers to provide information and influence their actions
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Finance
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the management of money and credit and banking and investments
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Training
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being taught how to do something
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Recruitment
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The development of a pool of applicants for jobs in an organization.
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Selection
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the process of collecting info about applicants to make hiring dicisions
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Marketing
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the commercial processes involved in promoting and selling and distributing a product or service
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Sales
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the exchange of a product of service for money
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Gross Profit
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(finance) the net sales minus the cost of goods and services sold
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Net Profit
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The money you have left after you have paid for expenses
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Purchasing
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the function in a firm that searches for quality material resources, finds the best suppliers, and negotiates the best price for goods and services
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Buyer
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someone who purchases
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Competitor
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A rival.
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Michael Porter
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Business Guru who created the Five Forces
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Alan Sugar
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Owner of Amstrad
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Donald Trump
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American property billionaire
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Richard Branson
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Head of Virgin Group
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Michelle Mone
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Owner of Ultimo Bras
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Anita Roddick
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Founder of the Body Shop
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Phillips Curve
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A graph showing the relationship between inflation and unemployment . The theory states that unemployment can be reduced in the short run by increasing price level (inflation) at a faster rate. Conversely, inflation can be lowered at the cost of possibly increased unemployment and slower economic growth
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Downsizing
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reducing a company in size by laying off workers and managers to become more efficient
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Recession
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the state of the economy declines
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Primary Information
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first hand information gathered by a business for their own purposes using questionnaires, interviews, ect
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Secondary Information
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has been collected by someone else for their own purpose
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Internal Information
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information from within the firm
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External Information
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information from outwith the firm
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Qualitative information
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non numerical information
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Quantitative information
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numberical information
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Supercomputer
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a mainframe computer that is one of the most powerful available at a given time
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Videoconferencing
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A method of communication that is used when the parties can not meet face-to-face that allows for verbal and visual communcation
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Audioconferencing
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allows an operator to dial all participants in the teleconference group, bringing each participant into the meeting as he or she is reached.
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Teleworking
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working from home using computers
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LAN
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a local computer network for communication between computers
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WAN
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a computer network that spans a wider area than does a local area network
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PDA
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a lightweight consumer electronic device that looks like a hand-held computer but instead performs specific tasks
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Fax
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Telephonic transmission of scanned-in printed material
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EPOS
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Electronic point of sale
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EFTPOS
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electronic funds transfer at point of sale
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Data Protection Act
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the law which governs what information can be held by people
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Floatation
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financing a commercial enterprise by bond or stock shares
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Bill Gates
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founder of microsoft
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Steve Jobs
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co-founder of Apple
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Sergy Brin & Lawrence Page
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Founders of Google
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GE
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General Electric
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Dragons Den
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TV show where inventors pitch ideas for cash
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Peter Jones
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English dragon made his fortune in telecoms
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Duncan Bannantyne
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Scottish dragon, owner of gymns and bars
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Theo Paphitis
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Cypriot dragon who owns Rymans stationers
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Wall Street
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area in lower Manhattan where the New York Stock Exchange is located
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