Leaving Cert Business Definitions Flashcards

An entrepreneur

is a person who takes the risk to set up a new business in the hope of making a profit.

An Interest group

is not an elected organisation but have strength in numbers. Their aims are to influence decisions made by organisations like the government.

A co-operative relationship

exists when stakeholders combine their efforts for their mutual benefit.

A competitive relationship

exists with stakeholders when they are competing for the same thing. e.g. sales, selling prices

A contract

is a legally binding agreement that is enforceable by law.

Conciliation

is an attempt by a third party to resolve a dispute by listening to the submissions of both sides and suggesting a solution.

Arbitration

is when both parties request a third party to investigate the issues and make a recommendation. Both parties have agreed in advance to accept the recommendation.

A trade dispute

is defined as any dispute between employers and workers which is connected with the employment or non-employment or the terms or conditions of employment of any person.

Industrial action

is defined as steps such as a strike or work to rule that workers of a firm may take to enforce their demands or to make management aware of their concerns or issues.

Discrimination

is the treatment of one person in a less favourable way than another person is, has or would be treated.

is defined as any act or conduct which is unwelcome or offensive, humiliating or intimidating, including acts of physical intimacy, spoken words, gestures, or the display or circulation of written material, pictures or requests for sexual favours.

Enterprise

involves people using their initiative to come up with ideas that they can turn into a business. When they take the risk to set up the business, they become an entrepreneur.

Reality perception

ensures that common sense prevails when solving a problem and making a decision. This involves being realistic and unemotional when making a decision.

Innovation

is coming up with new ideas and making suggestions that should be considered by the business.

Networking

is defined as creating a group of acquaintances and associates and keeping it active through regular communication for mutual benefit.

Management

is an operational process which involves analysing the essential managerial functions of planning, organisation, staffing, directing and controlling.

Time management

involves making the most effective use of the time available to effectively complete a task.

Leadership

has been defined as the means by which individuals or groups of people are persuaded to work towards the achievement of agreed objectives.

Delegation

is the passing on of work and responsibility to subordinates. A manager can delegate authority but not ultimate responsibility.

Motivation

is the set of forces that cause people to behave in certain ways.

Communication

is a two way process which involves the transferring of information from one person to another in a manner which ensures that the recipient will understand the message from the sender.

A meeting

is defined as the coming together of at least two people for a lawful purpose.

The mission statement

is the reason why an organisation exists, i.e. why a business was set up, what it hopes to achieve and the future direction for the business.

Planning

is the process of deciding the objectives of the business and how they are going to be effectively achieved.

Organising

involves ensuring that there is a clear structure within the firm to facilitate the smooth running of the business, e.g. a simple organisation structure should be in place.

Controlling

is a management activity that involves measuring performances to make sure the required standards are being reached.

The span of control

is the number of subordinates that report to one manager.

Lead time

is the normal delivery time by the supplier. It is important to know how reliable it is.

Just-In-Time (JIT)

is ordering goods just before they are required. Avoids the cost of storing stock but a short lead time is required.

Reservation of title

means that the seller owns the goods sold on credit until they are paid for.

Quality

is a degree of excellence that meets the customer's requirements on all issues except price.

A budget

is a financial plan for a specified period which is agreed in advance. It shows how much money is required for spending and where this money is going to come from.

Information technology (IT)

is defined as the computer hardware and software used to store, analyse and communicate business data.

The internet

is a global network of computers used to share information across the world.

Intranet

is the internet service operating within a business. It provides internal e-mail and internal services which can only be accessed by company employees.

Risk management

is an organised approach to assessing and managing all the potential risks that a business or individual can face.

Average clause

applies when a partial loss occurs and the risk is under-insured. If when the loss occurs, the market value of the loss suffered is greater that the amount for which it was insured, the insured will suffer from a partial loss.

Factoring

is the selling of trade debts to a factoring firm, i.e. a finance company. The debts are sold for less than their full value.

Tax credits

are the part of your income on which you are not liable for tax. Tax credits are deducted from gross tax to find tax payable.

Form 12

is filled by an employee in order to obtain a Tax Credit Certificate (TCC) from the tax office. This shows what the employees tax credits are.

Form P45

is given by an employer to an employee who leaves employment during the tax year. It shows the gross income paid to the employee and the amount of tax deducted from their earnings.

Form P60

is given by an employer to an employee at the end of each tax year. It shows the gross income paid to the employee and the amount of tax and PRSI deducted from their earnings.

Form P21

is issued by the Revenue Commissioner to the tax payer on request. It shows the taxpayers total income, tax credits and PAYE tax paid at the different rates for the year.

Human resource management

involves dealing with the concerns of staff in the workplace.

Manpower planning

involves liaising with the manager of each department to forecast the number of employees and skills required for the business.

A job description

is a statement of the purpose, scope, duties, and responsibilities attached to the job being advertised.

Training

is the planned acquisition of knowledge, skills and ability required to enable employees to perform their tasks effectively.

Induction training

is the training that is necessary for new employees. It helps them get off to a good start.

A trade union

is an association of workers whose main objective is to regulate the working relationship between employer and employee.

Collective bargaining

involves the negotiation of wages, hours and working conditions between employers and employees represented by unions.

Performance Appraisal

is to identify areas where an employee's performance can improve.

A team

is a group of employees working together to achieve the same goal.

Empowerment

means placing decision making responsibility in the hands of those employees who are closest to the customer.

Total quality management (TQM)

is a process of continuous improvement, which aims to prevent rather than to detect defects. The main aim of TQM is to focus businesses on the requirements of their customers and the relationship between suppliers and customers.

The trading account

is prepared to calculate the gross profit.

The profit and loss account

is prepared to calculate the net profit.

The balance sheet

is a financial statement that shows the value of the assets and liabilities on a certain date.

Ratio analysis

involves examining the relationships between financial figures in the accounts and expressing them as ratios or percentages.

Liquidity

is a measure of the ability of a business to pay its short term debts.

Overtrading

is when current liabilities are greater than current assets, it means the firm would not be able to pay all its debts in full if payment was due or demanded, i.e. it has a liquidity problem.

Gearing

is the ratio by which the capital of a company is split between debt capital and equity capital.

Public procurement

is the right of firms to tender for Government contracts, which must be put to tender.

Market research

is defined as the gathering, recording and analysing of all the facts and data concerned with the transfer of goods from the producer to the consumer.

Brainstorming

is the process for generating creative ideas and solutions through intensive and freewheeling group discussion. Every participant is encouraged to think aloud and suggest as many ideas as possible.

Benchmarking

measurement of the quality of a firm's products, services, programs, strategies, etc, against the best performing competitor.

A feasibility study

is an investigation of a proposal in order to assess its technical and financial viability.

Test marketing

determines the reaction of potential customers to the prototype. Based on consumer reaction certain aspects may be modified.

Marketing

is the management process responsible for identifying, anticipating and satisfying customer requirements profitably.

The marketing process

is the process that takes the product through the different stages from the potential customer to the satisfied customer.

The marketing concept

is defined as a managerial outlook that accepts the following as important tasks of the firm: 1. Finding out what customers want. 2.Producing and delivering such requirements profitably and more effectively than competitors.

The marketing strategy

is a marketing plan which outlines how the policies relating to product, price, promotion and place are carried out.

The marketing plan

will help determine future decision making in relation to trading, financial requirements and the direction the business should take.

The marketing mix

is the ingredients for the successful marketing of a product, i.e. product, price, promotion and place.

A niche market

is a small but specific and well defined segment of a bigger market. It is a specialist market with few suppliers.

Branding

is the entire process involved in creating a unique name and image for a product or service in the consumers mind through advertising campaigns with a consistent theme.

The product life cycle

is made up of four distinct stages every product goes through from its introduction to withdrawal from the market.

Cost plus pricing

is where goods are sold at the cost of production plus a profit mark-up.

Skimming price

is where a firm charges a high price in the short term for a product in demand.

The channels of distribution

are the means used by a manufacturer to get its products to the final customer.

Promotion

involves communicating with customers about products or services to encourage them to buy.

Advertising

is the paid form of publication of information regarding a firm's goods or services through newspapers, magazines, radio and TV which is designed to inform customers and persuade them to buy the advertised item.

Sales promotion

has been defined as the marketing techniques used on a temporary basis to make goods more attractive to consumers by providing some extra benefit, e.g. a free gift.

Merchandising

is where the manufacturer provides point of sale material to ensure that products are sold quickly and profitably.

Public relations

is the planned and sustained effort to establish and maintain goodwill and mutual understanding between a business and the public.

Personal selling

occurs when the seller tries to verbally persuade the customer to buy a product.

Business development cycle

every business passes through four distinct stages of growth, each one involving different problems and solutions.

The opportunity cost

is defined as the cost of not being able to do something else with the sum of money in question.

A sole trader

is someone who owns and runs a business. In law the sole trader and the business are the same.

A partnership

is the relation which exists between at least two and not more than 20 persons carrying on a business, with a view to making a profit. The business is jointly owned by all the partners.

A private limited company

is a business that is set up under the Companies Act 1963-1999 and is owned by a minimum of 1 and a maximum of 50 shareholders. All the shareholders have limited liability and the share price is not quoted on the stock exchange.

Job production

is the production of a single product to specific requirements. Each operation is a specific job which might not be required again.

Batch production

is when goods are produced for stock in anticipation of their being sold in the normal course of events.

Mass production

involves producing large quantities of the same product, thus achieving a saving in production.

A business plan

is a document that sets out how the business will operate and succeed.

Organic growth

involves increasing the size of the business by increasing sales and reinvesting the profits.

Inorganic growth

involves increasing the size of the business by merging with or taking over another business.

Economies of scale

are the cost savings which arise from doing things on a bigger scale rather than on a smaller scale.

Synergy

is the idea that 2 + 2 = 5, i.e. the combined effect or two firms merging will give a greater overall benefit than if the two firms remained separate.

Agri-Business

is the term used to describe the business of agriculture plus related industries.

A company

is a separate legal entity formed under the companies acts 1963-1999 for the purpose of carrying out business activity. It is owned by shareholders, who contribute money to a common fund called share capital. Profits are distributed to shareholders in the form of dividends.

Leaving Cert Business Definitions Flashcards ionicons-v5-c

Leaving Cert Business Definitions Flashcards