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AS Level Business Definitions

The document provides key definitions related to AS Level Business, including concepts such as enterprise, stakeholders, and business objectives. It outlines various business structures like sole traders, partnerships, and different types of companies, along with marketing strategies and production methods. Additionally, it covers financial metrics and management approaches essential for understanding business operations.

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35 views4 pages

AS Level Business Definitions

The document provides key definitions related to AS Level Business, including concepts such as enterprise, stakeholders, and business objectives. It outlines various business structures like sole traders, partnerships, and different types of companies, along with marketing strategies and production methods. Additionally, it covers financial metrics and management approaches essential for understanding business operations.

Uploaded by

shajratulhaider
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

AS Level Business - Key Definitions

Enterprise

- The process of organizing resources to produce goods and services for profit. Entrepreneurs manage

businesses, taking on risks.

Stakeholder

- An individual or group with an interest or concern in the business. Key stakeholders include employees,

customers, owners, and suppliers.

Business Objectives

- Goals that a business aims to achieve. These could include profit maximization, growth, customer

satisfaction, and corporate social responsibility.

Sole Trader

- A business owned and operated by one person, with unlimited liability.

Partnership

- A business structure where two or more individuals share ownership and responsibility for the company's

profits and debts.

Public Limited Company (PLC)

- A company whose shares are traded on a stock exchange and can be bought by the public.

Private Limited Company (Ltd)


- A company whose shares are privately held and not traded on the stock exchange.

Market Segmentation

- The process of dividing a broad consumer or business market into sub-groups based on shared

characteristics.

Marketing Mix (4Ps)

- A business tool used to determine a product's offering in the market, consisting of Product, Price, Place, and

Promotion.

Product Life Cycle

- The stages through which a product passes, from its introduction to the market to its eventual decline.

Economies of Scale

- The cost advantages that a business can achieve due to its scale of operation.

Break-even Point

- The level of output or sales at which total revenues equal total costs.

Liquidity Ratios

- Ratios that measure a company's ability to cover its short-term obligations with liquid assets.

Gross Profit Margin

- The percentage of revenue that exceeds the cost of goods sold.

Return on Capital Employed (ROCE)


- A ratio that measures a company's profitability relative to the capital employed in the business.

Job Production

- A method where products are made individually to meet specific customer orders.

Batch Production

- Goods are produced in groups or batches, each batch going through one stage before the next begins.

Flow Production

- A continuous production process used for standardized goods.

Centralisation

- Decision-making authority is concentrated at the top of the organization.

Decentralisation

- Decision-making is distributed among various levels of the organization.

Job Enrichment

- Employees are given more responsibility and a variety of tasks.

Total Quality Management (TQM)

- A management approach focused on continuous improvement and customer satisfaction.

Critical Path Analysis (CPA)

- A tool to determine the longest sequence of activities in a project and the minimum time required to
complete it.

Return on Sales (ROS)

- A ratio indicating how efficiently a company converts sales into profit.

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