National 5 Business Management – Flashcards
Unlock all answers in this set
Unlock answersquestion
Business
answer
An organisation that provides goods and services
question
Needs
answer
Basic requirements for survival -- the goods and services a person must have (food, water, etc)
question
Wants
answer
Goods that are purchased to add comfort or pleasure to life
question
Durable Good
answer
Items with lasting value, the purchase of which is considered a form of savings
question
Non-Durable Good
answer
goods that last a short period of time, such as food, light bulbs, and sneakers
question
Service
answer
intangible things of value (haircuts, maid service, laundry, education, etc.)
question
Land
answer
Any natural resource provided by nature and used in the production process
question
Labour
answer
productive work (especially physical work done for wages)
question
Capital
answer
Man made resources used to make a product
question
Enterprise
answer
Combining the Factors of Production
question
Factors of Production
answer
Land, Labour, Capital and Enterprise
question
Added Value
answer
The increase in worth of a product or service as a result of a particular activity.
question
Primary Sector
answer
The part of the economy that produces raw materials; examples include agriculture, fishing, mining, and forestry.
question
Secondary Sector
answer
The portion of the economy concerned with manufacturing useful products through processing, transforming, and assembling raw materials.
question
Tertiary Sector
answer
the part of the economy that involves services rather than goods
question
Sectors of Industry
answer
Primary, Secondary & Tertiary
question
Sole Trader
answer
a business owned by a single person
question
Partnership
answer
A business in which two or more persons combine their assets and skills
question
Private Limited Company
answer
A business organization owned by shareholders with limited liability but whose shares cannot be bought or sold to the general public.
question
Public Limited Company
answer
a business with limited liability whose shares are available to the general public to buy on the stock market
question
Private Sector
answer
Comprises businesses owned and controlled by individuals or groups of individuals
question
Public Sector
answer
Comprises organisations accountable to and controlled by central or local government (the state)
question
Third Sector
answer
The Not For Profit Sector
question
Dividend
answer
A payment from profits by a company's Board of Director's to shareholders.
question
Unlimited Liability
answer
The owner is personally and fully responsible for all losses and debts of the business
question
Social Enterprise
answer
A business that is set up to help society rather than to make a profit.
question
Customer Satisfaction
answer
the extent to which a product's perceived performance matches a buyer's expectations
question
After Sales Service
answer
providing support for a product post purchase
question
Social Responsibility
answer
An organization's aim to have a positive impact on society.
question
PESTEC
answer
Political, Economic, Social, Technological, Environmental, Competitive
question
Recession
answer
A slowdown in a nation's economy
question
Unemployment
answer
Measures the number of people who are able to work, but do not have a job during a period of time.
question
Inflation
answer
A rise in the general level of prices in an economy.
question
Legislation
answer
A law or set of laws made by a government
question
Stakeholder
answer
A person with a key interest in the success of a business
question
Customer
answer
People who buy the product/service
question
Owner
answer
Person who controls the company
question
Manager
answer
Person who makes decisions for the company
question
Employees
answer
People who work for the company
question
Suppliers
answer
Companies that provide material, human, financial, and informational resources to other companies
question
Market
answer
A place where buyers and sellers meet
question
Market Segmentation
answer
Dividing a market into groups of similar customers
question
Marketing Mix
answer
The 4 Ps
question
Product
answer
The item made by the business and sold to customers
question
Price
answer
How much you charge for your product
question
Place
answer
Where the product is sold
question
Promotion
answer
How customers are made aware of the product
question
Prototype
answer
A working model of the test product
question
Product Life Cycle
answer
Five stages that product goes through over its life: development, introduction, growth, maturity, and decline.
question
Branding
answer
A firm uses a name, phrase, design, symbols, to distinguish itself from competitors.
question
Premium Pricing
answer
Setting a high price for a quality product
question
Value Pricing
answer
A low cost pricing strategy
question
Promotional Pricing
answer
Temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales
question
Cost plus pricing
answer
Adding a mark-up percentage to costs & expenses to determine selling price
question
Destroyer Pricing
answer
Charging a deliberately low price to try to undermine competitors and put them out of business
question
Demand Oriented Pricing
answer
Charging customers different prices for the same product or service depending on demand
question
Psychological Pricing
answer
Setting prices that take account of customers' perception of value of the product
question
Warehouse
answer
a storehouse for goods and merchandise
question
Advertising
answer
A paid form of communication sent out by a business about a product or service.
question
Public Relations
answer
any activity designed to create a favourable image of a business, its products, or its policies
question
Sales Promotion
answer
Short-term incentives to encourage the purchase or sale of a product or service
question
Merchandising
answer
Using point of sale displays to attract customers into the store
question
Sponsorship
answer
When a company pays money to have their name or logo used in association with an event or an activity
question
Celebrity Endorsement
answer
use of famous people to promote a product
question
Trade Fair
answer
an event at which many different companies show and sell their products
question
Market Research
answer
The activity of gathering information about consumers' needs and preferences.
question
Field Research
answer
Data collected first hand
question
Desk Research
answer
Data collected second hand
question
Questionnaire
answer
A list of questions, usually printed, submitted for replies that can be analysed for information
question
Focus Group
answer
A small group of individuals who are led in discussion by a facilitator in order to gather opinions on an issue
question
Hall Test
answer
sampling products and offering feedback
question
IPO
answer
Input Process Output
question
Stock
answer
A supply of something available for future use.
question
Job Production
answer
The manufacture of one-off goods tailor made to meet the specifications of the customer.
question
Batch Production
answer
A production method that produces goods in groups
question
Flow Production
answer
large quantities of a product are produced in a continuous process. Also called mass production because of the large quantity of a standardised product that is produced
question
Labour Intensive
answer
Using a high proportion of employee effort rather than machinery in the production process.
question
Capital Intensive
answer
Using a high proportion of machinery rather than employee effort in the production process
question
Quality
answer
Consistently producing what the customer wants while reducing errors before and after delivery.
question
Quality Control
answer
Checking the product at the end of production
question
Quality Assurance
answer
Checking the product at each stage of production
question
Quality Circle
answer
Voluntary groups of people drawn from various production teams who make suggestions about how to improve the product
question
Benchmarking
answer
When a firm emulate the leading product in the field and try to improve upon it
question
Total Quality Management
answer
Aims to have 100% customer satisfaction and aims for zero defects. Every employee is treated like a customer.
question
Recycling
answer
Collecting and reprocessing a resource or product to make into new products.
question
Recruitment
answer
Process of encouraging people to apply for a job vacancy
question
Selection
answer
Process of choosing the best person for a job
question
Job Analysis
answer
Looking at the tasks and duties in a position to see what it consists of
question
Job Description
answer
A written statement listing duties and responsibilities of a specific role
question
Person Specification
answer
Document which outlines the requirements, qualifications and expertise required by the ideal candidate
question
Leet
answer
creating the shortlist for interview
question
Assessment Centre
answer
A series of exercises in which management candidates perform realistic management tasks while being observed by appraisers.
question
Interview
answer
A formal meeting arranged to evaluate an applicant
question
Induction
answer
Training for new employees
question
On the job training
answer
Training provided at the employee's place of work
question
Off the job training
answer
Training provided at college or a training centre
question
E-Learning
answer
Delivery of formal and informal training and educational materials, processes, and programs via the use of electronic media
question
E-Commerce
answer
Buying and selling online
question
Motivation
answer
Encouraging employees to get the best out of them
question
Fringe Benefits
answer
Any financial extras beyond the regular pay check, such as health insurance, life insurance, paid vacation retirement, and/or company car
question
Theory X
answer
assumes that workers are basically lazy, error-prone, and extrinsically motivated by money and, thus, should be directed from above.
question
Theory Y
answer
assumes that, given challenge and freedom, workers are motivated to achieve self-esteem and to demonstrate their competence and creativity.
question
Hierarchy of Needs
answer
Maslow's pyramid of human needs, beginning at the base with physiological needs that must first be satisfied before higher-level safety needs and then psychological needs become active
question
Salary
answer
The money paid annually for employee services
question
Wages
answer
An amount of money paid to an employee at a specified rate per hour worked
question
Piece Rate
answer
rewarding employees for the number of items they produce.
question
Scientific Management
answer
a management theory using efficiency experts to examine each work operations and find ways to minimize the time needed to complete it
question
Bonus
answer
Receiving an extra payment for meeting a goal or target
question
Commission
answer
Receiving a percentage of money based on the amount of sales they make
question
Time Rate
answer
rate of pay based on an amount of time, usually per hour
question
Teleworking
answer
Working from home but staying in touch with others with the help of technology
question
Job Share
answer
one full-time job split between two employees, each working on a part-time basis
question
Flexitime
answer
a system in which people work a particular number of hours each week or month, but can change the times at which they start and finish each day
question
Industrial Action
answer
Measures taken by the workforce or trade union to put pressure on management to settle an industrial dispute in favour of employees.
question
Strike
answer
An organized work stoppage intended to force an employer to address union demands.
question
Work to Rule
answer
A job action in which workers cause a slowdown by doing only the minimum amount required by the rules of the workplace
question
Go Slow
answer
a form of industrial action when the employees do their normal tasks but more slowly than usual
question
Sit in
answer
form of protest where employees occupy the workplace and refuse to leave
question
Overtime ban
answer
a form of industrial action when employees refuse to work longer than their normal working hours
question
Equality Act
answer
Legislation that brings together all discrimination acts
question
National Minimum Wage
answer
the amount by law that firms are must pay their workers
question
Health and Safety at Work Act
answer
Legislation that protects the working conditions of employees from danger or exploitation
