Assam ASSEB Higher Secondary Business Studies key terms

The process of getting work done through other people by planning, organising, staffing, directing and controlling resources so that organisational goals are achieved efficiently and effectively.

Efficiency means doing a task at minimum cost and waste; effectiveness means actually completing the intended goal. Good management balances both rather than sacrificing one for the other.

The orderly synchronising of individual efforts and group activities so that common goals are reached without duplication, conflict or wasted effort. It runs through every function of management.

The view that management shows some features of a profession, such as a body of knowledge and ethical codes, but lacks compulsory licensing and a single enforced entry qualification in most countries.

The three layers of authority in an organisation: top management sets objectives and policy, middle management translates policy into departmental plans, and supervisory management oversees day-to-day work of operatives.

Splitting total work into small specialised tasks so that each person performs a limited set of activities repeatedly, building speed and skill. It is a core principle of scientific and administrative management.

The principle that an employee should receive orders from and be accountable to only one superior, so that conflicting instructions and confusion over responsibility are avoided.

The principle that all activities having the same objective should be grouped under one head and one plan, ensuring that effort moves towards a single shared goal.

The unbroken line of authority running from the top to the lowest level of an organisation. It clarifies who reports to whom and supports orderly communication.

The principle that managers should build team spirit and harmony so that unity of effort replaces individual rivalry; it stresses coordinated teamwork rather than personal competition.

The sum of external forces and institutions, such as economic, social, legal, technological and political conditions, that surround a firm and influence its decisions and performance.

A structured review of a firm's internal strengths and weaknesses and its external opportunities and threats, used to match capabilities with the conditions found in the business environment.

The removal or relaxation of government restrictions on business, such as licensing, import controls and price regulation, which opens sectors to private and foreign participation.

The growing integration of national economies through trade, investment, technology and movement of people, so that markets and production increasingly operate across national borders.

Deciding in advance what to do, how to do it and when, by setting objectives and choosing the actions and resources needed to reach them. It bridges the gap between where a firm is and where it wants to be.

A broad, long-term plan that sets the direction of an organisation and matches its resources and capabilities to opportunities and threats in the environment.

A general statement or guideline that channels thinking and decision-making within an organisation, leaving managers free to choose specific actions within its limits.

The pattern of relationships among positions and departments that shows who does what, who reports to whom, and how authority and responsibility are distributed.

The transfer of authority by a superior to a subordinate to carry out a specific task, while the superior remains accountable for the results.

Authority is the right to give orders and use resources; responsibility is the obligation to perform an assigned duty. The two must be balanced so that no one has one without the other.

The number of subordinates who report directly to one superior. A narrow span produces a tall structure with many levels; a wide span produces a flat structure.

The management function of finding, assessing, selecting, placing and developing the right people for the right jobs, and keeping them productive within the organisation.

The process of searching for and attracting a pool of candidates so that suitable applicants can be selected for vacant positions. It may draw on internal or external sources.

Choosing the most suitable candidate from the applicants attracted by recruitment, using tests, interviews and reference checks to judge whether a person fits the job and the organisation.

Activities that improve an employee's skills and knowledge: training focuses on the current job, while development prepares the person for broader and higher responsibilities in future.

The management function of instructing, guiding, motivating and leading subordinates so that they work willingly and effectively towards organisational objectives.

The inner drive that makes a person act towards a goal. Managers motivate by offering incentives, recognition and conditions that satisfy needs and encourage effort.

The ability to influence people so that they willingly follow a direction and contribute to group goals. It depends on personal qualities and the relationship between leader and followers.

The process of measuring actual performance against standards, finding deviations, identifying their causes and taking corrective action so that goals are met.

A control principle under which managers attend only to significant deviations from standards, leaving routine results to subordinates. It saves managerial time and sharpens attention.

Planning, raising, investing and monitoring a firm's funds so that it has adequate finance at reasonable cost and earns an appropriate return for its owners.

The mix of long-term debt and equity used by a firm to finance its assets. The choice affects financial risk, cost of capital and the return available to shareholders.

The funds needed for day-to-day operations, mainly to finance current assets such as inventory, receivables and cash, net of current liabilities.

A place or mechanism where savers and borrowers come together to trade financial assets such as shares, bonds and bills, thereby channeling funds into productive use.

The segment of the financial market where a company issues new securities to investors to raise fresh capital, for example through an initial public offer.

The market where existing securities are bought and sold among investors, providing liquidity and price discovery but raising no new funds for the issuing company.

The set of controllable elements a firm combines to satisfy its target market, commonly described as product, price, place and promotion.

Dividing a broad market into smaller groups of buyers with similar needs or characteristics, so that products and marketing efforts can be tailored to each group.

Giving a product a name, sign or symbol that identifies it and distinguishes it from competitors, helping buyers recognise it and building loyalty and reputation.

Information printed on or attached to a product package covering ingredients, usage, precautions and manufacturer details, which helps buyers choose safely and legally.

The legal and moral entitlements of buyers, such as safety, information, choice, being heard, redressal and consumer education, protected by consumer protection law.

The duties of a buyer, such as checking quality and labels, asking for a bill, following instructions and complaining about genuine defects, which support the effective exercise of rights.

The process of obtaining compensation or a remedy for a defective product or poor service, typically through a complaint to the seller or to a consumer commission.