Académique Documents
Professionnel Documents
Culture Documents
Unit 1/2/3
Product Life Cycle The stages that a product passes through during its
lifetime: development, introduction, growth, maturity,
decline
Product Design Make-up of the product making it work well and look
good
Cost-plus Pricing Price set at average cost per unity plus desired profit
margin
Contribution Pricing Price is set to cover average variable costs per unit and
a sum to pay towards fixed costs and profit
Price Taking Where small firms follow the price set by the market
leader
Predator Pricing Where firms set very low prices in order to drive other
firms out of the market
Loss Leader Where a firm sets a very low price for its product(s) in
order to encourage consumers to buy other products
which provide profit for the firm
Break-even Output Level of output where total sales are equal to total
costs of production
Cash Flow Forecasting Estimating the expected cash inflows and cash
outflows over a period of time
Debt Factoring When a bank (usually) buys the right to collect the
money from the credit sales of the firm
Zero Budgeting Where managers must justify all of the money allocated
to them
Profit Centre An identifiable part of the company for which costs and
revenue can be calculated
Laissez-faire Leadership Where the leader has minimal input in the decision-
making process and leaves the running of the business
to the staff
Workforce Planning Where a business forecasts how many and what type
of employees it needs now and in the future, and
matches up the appropriate employees with the needs
of the firm
Off-the-job Training All forms of employee education apart from that at the
immediate workplace
Operations Management The process that uses the resources of the business to
provide the right products for the customer
Just-In-Time (JIT) Items of stock arrive just at the time they are needed
for production. Eliminates the need for stock
Business Cycle Pattern of ups and downs in demand and output within
an economy
GNP Total value of a countryʼs output over one year plus net
income from abroad. Used more
Interest Rate The costs of borrowing money and the return for
lending money. Set by the Monetary Policy Committee
Unlimited Liability Owners of the business are liable for all the debts that
the business may incur
Limited Liability Where the owners of the business are liable for the
share capital they invested into the firm and nothing
else
Public Limited Company A business with limited liability, a share capital of over
(PLC) £50,000, and, generally, a wide spread of shareholders