ACCA BT key terms

A person who owns and runs a business alone, with no separate legal identity, so they keep all profits but are personally liable for all business debts.

The protection that means shareholders can lose only the amount they invested in a company's shares, not their personal assets, if the company fails.

A company whose shares can be offered to the general public and traded on a stock exchange, subject to minimum capital and extensive disclosure requirements.

The rules, practices and processes by which a company is directed and controlled, balancing the interests of shareholders, managers and other stakeholders.

A conflict arising when managers, acting as agents for shareholders, pursue their own interests rather than the objectives of the owners who appointed them.

Any person or group affected by, or with an interest in, what an organisation does, such as shareholders, employees, customers, suppliers, lenders, local communities and government.

The number of subordinates who report directly to one manager, which affects how closely work is supervised and how many layers a hierarchy needs.

The line of authority that runs from the top of an organisation to each employee, showing who reports to whom and who may give instructions.

Passing a task, and enough authority to complete it, to a subordinate, while the manager who delegates remains accountable for the result.

An arrangement where staff belong to a functional department but also report to a project or product manager, giving flexibility at the cost of divided authority.

A technique for scanning the wider business environment by grouping influences as political, economic, social, technological, environmental and legal, to spot opportunities and threats.

A summary of an organisation's internal strengths and weaknesses and its external opportunities and threats, used to judge strategic position and options.

A model of industry attractiveness based on rivalry among existing firms, threat of new entrants and substitutes, and the bargaining power of buyers and suppliers.

The growing interconnection of national economies through trade, investment, capital flows and migration, which widens markets and increases international competition.

The recurring pattern of growth, peak, slowdown and recovery in a country's economic activity, which affects demand, jobs, prices and business confidence.

A sustained increase in the general level of prices, which reduces the purchasing power of money and puts pressure on costs, wages and interest rates.

Action by a central bank to influence the economy, mainly through interest rates and the money supply, usually aimed at controlling inflation.

A business's voluntary commitment to behave ethically and to consider the social and environmental effects of its activities, beyond what the law requires.

The linked activities through which an organisation turns inputs into a product or service and adds value at each stage for the customer.

Engaging an external supplier to carry out work that the organisation previously did itself, usually to reduce cost or gain specialist expertise.

Moving a business activity to another country to cut costs or reach new skills, whether the work is kept in-house or given to a foreign supplier.

A single software system with a shared database that supports core processes such as finance, purchasing, production, sales and human resources across the organisation.

Extremely large and fast-moving sets of data, of varied types, that need special tools to store and analyse for patterns and insight.

Examining data to find patterns, trends and relationships that help managers understand performance and make better decisions.

Coordinating the flow of materials, information and money from suppliers, through operations, to customers, so that cost, quality and delivery are balanced.

A way of running an organisation in which everyone continually improves quality to meet customer requirements, backed by senior management commitment and measurement.

The controls and practices that protect computer systems, networks and data from unauthorised access, theft or damage, including compliance with data protection law.

Influencing, motivating and enabling people to work willingly towards shared goals, particularly where change or a new direction is needed.

Achieving objectives through other people by planning, organising, directing and controlling resources so that work is done efficiently and to standard.

A style where the leader takes decisions alone and expects them to be followed, allowing little participation from team members.

A participative style where the leader consults the team and involves members in decisions, while still carrying final responsibility.

The view that effective leaders adapt their style to the ability and willingness of their followers and to the demands of the situation.

A style that motivates people to exceed expectations through a shared vision, intellectual challenge, and personal support and development.

A model describing how teams progress through forming, storming, norming and performing, and later adjourning, as members settle relationships and ways of working.

A framework proposing that teams work best when members cover a range of behavioural roles, such as coordinator, shaper, plant, monitor-evaluator and implementer.

A theory that people satisfy needs in sequence, from physiological and safety needs, through belonging and esteem, to self-actualisation.

The idea that hygiene factors such as pay and working conditions only prevent dissatisfaction, while motivators such as achievement, recognition and responsibility create real motivation.

The ability to notice, understand and regulate one's own emotions and to read and respond appropriately to the emotions of others.