Karnataka II PUC Business Studies (KSEAB) key terms

The process of planning, organising, staffing, directing and controlling the work of others so that organisational goals are reached efficiently and effectively.

Doing a task correctly while using the least amount of resources, so that cost per unit of output stays low. It focuses on the 'how' of the work.

Completing a task on time and actually reaching the intended goal, even if more resources are used. It focuses on the 'what' of the work.

The orderly synchronising of activities of different departments and individuals so that they move towards a common goal without conflict, duplication or delay.

A broad general guideline that managers use while taking decisions and handling situations. It is flexible and applied with judgement, not followed blindly like a law.

Breaking a large task into smaller specialised parts and giving each part to a person or group, which improves speed, accuracy and the skill of workers.

Each subordinate should receive orders from and be answerable to only one superior, so that conflicting instructions, confusion and shifting of responsibility are avoided.

All activities that share one objective should be grouped under one head and one plan, so that effort is not duplicated and resources are used well.

The unbroken line of authority running from the top manager down to the lowest level, which marks the formal path for passing orders and information.

A short cut that lets two employees at the same level of the scalar chain communicate directly in an emergency, after informing their superiors.

The sum of all external forces, such as economic, social, technological, political and legal factors, that surround a firm and affect its decisions and performance.

Removal of unnecessary government controls, licences and restrictions on business, giving firms freedom to take their own production and investment decisions.

Transferring ownership or management of public sector enterprises to private hands, usually through disinvestment or sale of government shares to private investors.

Integration of a country's economy with world markets, allowing freer movement of goods, services, capital and technology across national borders.

Deciding in advance what to do, how to do it and when to do it, so that goals are met with the least waste of resources.

A comprehensive plan that sets the broad direction of the organisation by matching its internal strengths with opportunities in a changing environment.

A general statement or guideline that helps managers make routine decisions within a set framework; it is flexible but keeps decisions inside fixed limits.

Grouping of activities, assigning them to departments and people, and fixing authority and responsibility so that the plans drawn up can actually be carried out.

Passing a part of a superior's work, along with the authority needed to do it, to a subordinate, while the superior continues to remain answerable for the result.

The systematic dispersal of decision-making authority to lower levels of the organisation, so that decisions are taken close to the point where the action happens.

Finding the right people for the right jobs and retaining them; it covers manpower planning, recruitment, selection, placement, training, appraisal and promotion.

The process of searching for and attracting a pool of candidates to apply for a vacant job, so that the most suitable person can be chosen later.

The process of picking, from among the applicants, the person best suited to the job, using screening of applications, tests, interviews and reference checks.

Instructing, guiding, motivating and supervising employees so that they work willingly and steadily towards the goals set out in the plan.

The inner urge or drive that makes a person act in a particular way; managers create conditions that satisfy needs and release this energy towards work.

The ability of a manager to influence the behaviour of others so that they willingly follow him or her and work for the goals of the organisation.

Comparing actual performance with the standards set and taking corrective action wherever deviations are found, so that the planned goals are actually achieved.

A principle of control under which managers attend only to significant deviations from standards and leave minor, routine ones to be handled by subordinates.

Planning, raising, using and controlling the funds of a business so that the firm earns an adequate return while keeping financial risk under control.

The mix of long-term sources of finance, such as equity share capital, preference capital and borrowed funds, used by a company to finance its assets.

The funds needed for the day-to-day running of the business, mainly to hold current assets like stock, debtors and cash, and to meet current liabilities.

A place or mechanism where funds move from those who have savings to those who need money, through instruments such as shares, debentures and bills.

The market where a company issues securities for the first time to raise fresh capital; it is also called the new issue market.

The market where existing securities are bought and sold among investors, giving them liquidity; the stock exchange is its main organised form.

The set of controllable elements, namely product, price, place and promotion, that a firm combines to satisfy target customers and achieve its marketing objectives.

Giving a product a name, sign or symbol that identifies it and sets it apart from competitors' products in the mind of the customer.

The stages a product passes through after launch, namely introduction, growth, maturity and decline, each of which needs a different marketing strategy.

Any person who buys goods or hires services for personal use and not for resale or a commercial purpose; the term also covers users of such goods.

The legal entitlements of buyers, such as safety, information, choice, being heard, redressal and consumer education, protected under the Consumer Protection Act.

The 2019 Indian law that protects buyers against defective goods and deficient services and sets up district, state and national commissions to hear their complaints.