CPA Contemporary Business Issues - independent subject foundations key terms

The number of employees reporting directly to one manager. Its width can affect workload, communication and supervision, but does not alone determine every layer or the degree of delegation.

An organisational design with several layers of management and a clear chain of command from senior to junior staff. It offers clear authority and promotion paths but can slow communication and raise costs.

Removing one or more levels of management from an organisation's hierarchy to cut costs and shorten communication channels. It widens spans of control and may reduce promotion opportunities, affecting morale.

Passing authority to a subordinate to carry out a task while the manager keeps overall accountability. It develops staff and frees managers' time but risks poor decisions if training and control are inadequate.

The process of identifying a vacancy and attracting suitable applicants, through internal promotion or external methods such as advertising and agencies. The chosen method affects cost, speed and the quality of candidates.

A document stating the duties, responsibilities and reporting relationships of a post. It is used to advertise a vacancy and to set expectations, and it supports later appraisal and training decisions.

A profile of the qualifications, skills, experience and personal qualities required for a job. It helps shortlist applicants objectively and reduces bias, though poorly written criteria can exclude suitable candidates.

Choosing the best applicant for a vacancy using tools such as interviews, tests, references and assessment centres. Reliable selection reduces costly staff turnover but methods vary in validity and expense.

Introductory training given to new employees covering the organisation, its rules, health and safety and their role. It helps newcomers settle quickly and reduces early resignation, but takes time away from work.

Teaching skills while the employee performs real tasks at the workplace, often under supervision. It is relatively cheap and job-relevant but can pass on poor habits and disrupt normal output.

Physical resource use per unit of output under a stated boundary, which can decline even while absolute resource consumption increases.

A cost or benefit affecting another party that is not fully reflected in the transaction price or the decision-maker’s private accounts.

The defined stages and activities included in an impact assessment, necessary for a coherent comparison of product or process alternatives.

An increase in activity encouraged by improved efficiency or lower cost that can offset some anticipated reduction in resource use.

A way of considering stocks of natural resources and ecosystem contributions without assuming every item is a recognized financial asset.

Misleading environmental communication that exaggerates benefits or omits relevant impacts, boundaries or evidence needed to understand the claim.

The basis for deciding what information matters to specified users or affected parties, which depends on the actual reporting context.

An approach connecting strategy, governance, performance and value drivers, rather than simply placing unrelated financial and environmental figures together.

An analysis of affected or influential groups and their interests, dependencies, power and exposure, used to support engagement and decision reasoning.

Assessment of whether an implemented change produces the intended outcomes, distinct from confirming that the project delivered an output.

A framework classifying growth options by existing or new products and markets. It supports comparison of strategic changes, but the actual risk depends on capabilities, commitment and the particular situation.

The long-term plan of action a firm adopts to achieve its objectives and gain advantage over rivals, given its resources and environment. It involves choices about markets, products and methods of competing.

A review of a firm's internal strengths and weaknesses and external opportunities and threats. It informs strategy by matching capabilities to the environment, though it can become a static list if not updated.

An examination of political, economic, social and technological influences on a business. It helps anticipate external change and shape strategy, but it is descriptive and does not by itself prescribe action.

Acquiring control of another business by buying enough of its shares, often as a faster route to growth than internal expansion. It brings immediate capacity but risks overpaying and clashing cultures.

The joining of two businesses into a single organisation, usually presented as a partnership of equals. It can create synergies and market power, but integration problems often erode the expected benefits.

Falls in long-run average cost as the scale of the enterprise expands, potentially through specialization, purchasing or technical advantages. This differs from merely spreading fixed cost by raising utilization of an unchanged plant.

Rises in average cost per unit as output grows beyond an optimal level, caused by communication problems, poor coordination and lower staff motivation. They limit the benefits of very large-scale operations.

Actual output expressed as a percentage of maximum possible output. High utilisation spreads fixed costs but leaves little slack for unexpected orders; low utilisation wastes resources.

Controlling the amount of raw materials, work in progress and finished goods held. Too much stock ties up cash and risks obsolescence; too little risks stockouts and lost sales.