DU Business Studies Unit (Ga Unit) flashcards
DU Business Studies Unit (Ga Unit) · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Business environment
- The sum of internal and external factors that influence a firm's operations and decisions, including customers, competitors, government policy, technology and social trends.
- PESTLE analysis
- A scanning tool that examines Political, Economic, Social, Technological, Legal and Environmental forces outside a firm to identify opportunities and threats before strategy is framed.
- SWOT analysis
- A framework matching internal Strengths and Weaknesses with external Opportunities and Threats, used to build strategy on capabilities and guard against environmental risks.
- Entrepreneur
- A person who combines land, labour and capital, introduces new products or methods, bears the risk of uncertainty and earns profit as residual reward.
- Unity of command
- A principle stating that each subordinate should receive orders from and be accountable to only one superior, preventing conflicting instructions and confusion.
- Span of control
- The number of subordinates directly reporting to a manager; a narrow span produces a tall hierarchy, while a wide span produces a flat structure.
- Delegation
- Assignment of authority and responsibility by a superior to a subordinate; authority can be delegated, but final accountability for results remains with the delegator.
- Maslow need hierarchy
- A motivation theory arranging needs as physiological, safety, social, esteem and self-actualisation, satisfied in ascending order once lower needs are reasonably met.
- Marketing mix
- The set of controllable elements a firm combines to reach its target market: Product, Price, Place and Promotion, extended for services to include People, Process and Physical evidence.
- Market segmentation
- Dividing a heterogeneous market into smaller groups sharing needs or traits, using geographic, demographic, psychographic or behavioural bases so each group can be served effectively.
- Penetration pricing
- A launch strategy setting a low initial price to attract buyers quickly, build market share and discourage entrants, usually followed by gradual price increases.
- Product life cycle
- The sequence of introduction, growth, maturity and decline through which a product passes, with sales, profit and competition changing at each stage.
- Accounting equation
- The fundamental identity Assets = Liabilities + Capital, which remains balanced after every transaction because each transaction has equal debit and credit effects.
- Trial balance
- A statement listing debit and credit balances of ledger accounts; equal totals show arithmetical accuracy but do not reveal errors of principle or complete omission.
- Working capital
- The excess of current assets over current liabilities, representing funds available for day-to-day operations such as buying stock and paying wages.
- Break-even point
- The output level at which total revenue equals total cost, computed as fixed cost divided by contribution per unit, so profit is zero.
- Price elasticity of demand
- The percentage change in quantity demanded divided by the percentage change in price; demand is elastic above one and inelastic below one.
- Law of variable proportions
- In the short run, adding more of a variable input to fixed inputs raises marginal product at first, then lowers it, and eventually makes it negative.
- Compound interest
- Interest calculated on principal plus accumulated interest; amount equals P(1 + R/100)^n, and compound interest is that amount minus the principal.
- Monopoly
- A market structure with a single seller of a product having no close substitutes, giving the firm price-making power and entry barriers for rivals.
- Communication process
- The sequence of sender, encoding, message, channel, receiver, decoding and feedback, in which noise can distort meaning at any stage.
- Grapevine communication
- Informal, unofficial communication flowing through personal networks in an organisation; it spreads rapidly but is often inaccurate and unverifiable.
- Minutes of a meeting
- The official written record of a meeting, covering attendance, decisions taken and action points, kept for reference and legal evidence.
- Seven Cs of communication
- Clear, concise, concrete, correct, coherent, complete and courteous; these qualities make a business message accurate and easy for the receiver to act on.
- Job specification
- A statement of the qualifications, skills, experience and personal attributes required to perform a particular job, derived from job analysis.
- Collective bargaining
- Negotiation between employer representatives and trade union representatives over wages, working conditions and other terms of employment, producing a binding settlement.
- Performance appraisal
- A systematic evaluation of an employee's work performance against set standards, used for feedback, training needs, promotion and pay decisions.
- Industrial dispute
- A disagreement between employer and workers over wages, working conditions, retrenchment or union recognition, settled through conciliation, arbitration or adjudication.
- Valid contract
- An agreement enforceable by law, requiring offer, acceptance, lawful consideration, capacity, free consent and lawful object, plus legal formalities where prescribed.
- Memorandum of Association
- The charter document of a company defining its name, registered office, objects and liability, governing relations with the outside world.
- Articles of Association
- The internal rulebook of a company regulating management, meetings, shares and voting, subordinate to the memorandum of association.
- Promissory note
- A written instrument containing an unconditional promise by the maker to pay a specified sum to a named person or bearer on demand or at a fixed time.