CHSE Odisha Elective BSM flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Business

An organised activity of producing or exchanging goods and services with the object of earning profit by satisfying human wants, distinct from non-economic activity.

Auxiliaries to trade

Services that support trade and remove hindrances of place, time, finance, and risk: transport, warehousing, banking, insurance, and advertising.

Business risk

The possibility of loss due to uncertainty about the future, inseparable from ownership and classifiable as insurable or non-insurable.

Sole proprietorship

A business owned, managed, and controlled by one person, who bears unlimited liability and enjoys no separate legal identity from the business.

Partnership

A relation between persons who agree to share profits of a business carried on by all or any acting for all, under the Partnership Act, 1932.

Cooperative society

A voluntary association of at least ten adult members, registered under cooperative law, run on service motive with one member one vote.

Joint stock company

An artificial legal person with separate entity, perpetual succession, limited liability, and a common seal, registered under company law.

Management

The process of planning, organising, staffing, directing, and controlling resources to achieve stated objectives through and with other people.

Unity of command

The principle that each subordinate should receive orders from and be accountable to only one superior, avoiding confusion and conflict.

Esprit de corps

Fayol's principle of building team spirit and harmony among employees, stressing unity of effort rather than division among staff.

Scientific management

Taylor's approach applying scientific study of work methods, time and motion study, and differential wages to raise efficiency.

Planning

The process of deciding in advance what to do, how, when, and by whom, bridging the gap between present position and desired goals.

Planning premises

Assumptions about future internal and external conditions on which plans are based, classed as controllable, semi-controllable, or uncontrollable.

Strategy

A comprehensive plan of action for achieving long-term objectives, shaped by anticipating the environment and adapting the firm to it.

Bounded rationality

Simon's idea that managers face limited information and capacity, so they accept a satisfactory rather than optimal alternative.

Delegation

The downward transfer of authority by a superior to a subordinate along with responsibility, while accountability to the superior remains.

Span of management

The number of subordinates that one superior can effectively supervise; a narrow span creates a tall structure and a wide span a flat one.

Informal organisation

A network of social relationships arising spontaneously among employees, outside the officially designed structure, with its own grapevine.

Recruitment

The positive process of searching for and attracting prospective employees from internal and external sources to apply for jobs.

Leadership

The process of influencing others to work willingly towards group goals, exercised through autocratic, democratic, or laissez-faire styles.

Herzberg's hygiene factors

Job conditions such as pay, policy, and supervision that prevent dissatisfaction but do not by themselves create positive motivation.

Communication process

The sequence of sender, encoding, message, channel, receiver, decoding, and feedback, with noise able to distort any stage.

Coordination

The orderly synchronisation of group efforts to ensure unity of action, present in every managerial function rather than a separate one.

Management by exception

A control approach in which managers attend only to significant deviations from standards, leaving routine matters to subordinates.

Controlling

The process of setting standards, measuring performance, comparing it with standards, and taking corrective action to achieve goals.

Wealth maximisation

The financial objective of maximising the market value of equity, preferred to profit maximisation because it considers time and risk.

Working capital

The funds invested in current assets such as stock, debtors, and cash, needed for the day-to-day operations of a business.

Break-even point

The output level at which total revenue equals total cost, computed as fixed cost divided by contribution per unit.

Marketing mix

The combination of product, price, place, and promotion decisions that a firm blends to satisfy its target market profitably.

Market segmentation

Dividing a heterogeneous market into smaller homogeneous groups of buyers with similar needs, so each can be served with a tailored offer.

SWOT analysis

A review of internal strengths and weaknesses and external opportunities and threats, used to match a firm's capabilities to its environment.

Business ethics

Moral principles and standards that guide conduct in business, covering honesty, fairness, and responsibility toward stakeholders and society.