Download AQA BUSS1 Planning and Financing a Business

RO61: Introduction to Business
INTERACTIVE GLOSSARY
OF KEY TERMS
Cambridge National in Business and Enterprise
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L
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Q
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T
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X
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View by learning outcome
 Lo1: Understand business ownership
 Lo2: Understand business objectives
 Lo3: Understand key functional areas
 Lo4: Understand how external factors impact on
businesses
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View by learning outcome
 Lo1: Understand business ownership
 Lo2: Understand business objectives
 Lo3: Understand key functional areas
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Finance
Marketing
Production and operations
Human resource management
 Lo4: Understand how external factors impact on
businesses
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ABC
Lo1: Understand business ownership
 Sole trader
 Shareholders
 Partnership
 Dividends
 Private limited company (ltd)
 Incorporation
 Public limited company (plc)
 Memorandum of association
 Unlimited liability
 Articles of association
 Limited liability
 Stock exchange
 Capital
 Flotation
 Asset
 Debt
 Deed of partnership
 Sleeping partners
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ABC
Lo2: Understand business objectives
 Business objectives
 SMART objectives
 Profit
 Social benefit
 Sales
 Market share
 Effective service
 Survival
 Growth
 Ethical
 Sustainable
 Business planning
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ABC
Lo3: Understand key functional areas
Finance
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Raising finance
Bank loan
Overdraft
Mortgage
Interest rate
Friends and family
Grants
Fixed costs
Variable costs
Total costs
Revenues
Profit
Loss
Cash flow
Cash in
Cash out
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 Cash flow statements
 Opening balance
 Closing balance
 Net cash flow
 Receipts
 Payments
 Credit Sales
 Credit purchases
 Break even point
 Break even charts
 Contribution
 Contribution per unit
123
ABC
Lo3: Understand key functional areas
Marketing
 Marketing
 Marketing mix
 Market Segmentation
 Product
 Demographic segmentation
 Price
 Geographic segmentation
 Promotion
 Socio-economic group
 Place
 Market mapping
 Unique selling point
 Market research
 Product portfolio
 Primary market research
 Demand
 Secondary market research
 Price skimming
 Questionnaires
 Penetration pricing
 Focus groups
 Psychological pricing
 Survey
 Loss leader
 Supplier feedback
 Promotional mix
 Customer feedback
 Wholesaler
 Internet research
 Retailer
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ABC
Lo3: Understand key functional areas
Production and operations
 Job production
 Batch production
 Flow production
 Factors of production
 Specialisation
 Division of labour
 Quality control
 Quality
 Quality assurance
 Quality standards
 Total quality management
 Resource control
 Logistics
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ABC
Lo3: Understand key functional areas
Human resource management
 Human resource management
 Training
 Recruitment
 On the job training
 Full-time employee
 Off the job training
 Part-time employee
 Induction training
 Internal recruitment
 Retention
 External recruitment
 Pay
 Personal recommendation
 Working conditions
 Advertising
 Performance management
 Interview
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ABC
Lo4: Understand how external factors
impact on businesses
 Social factors
 Legislation
 Demographics
 Health and safety
 Technological factors
 Minimum wage
 Environmental factors
 Copyright
 Green working practices
 Patent
 Green consumerism
 Trade marks
 Ethical factors
 Economic factors
 Carbon footprint
 Employment
 Corporate social responsibility
 Interest rate
 Political factors
 Inflation
 Exchange rates
 Recession
 Recovery
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ABC
View by Formula
 Break even point
 Closing balance
 Contribution
 Contribution per unit
 Loss
 Market share
 Net cash flow
 Opening balance
 Profit
 Revenue
 Total cost
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ABC
A and B
 Advertising
 Bank loan
 Articles of association
 Batch production
 Asset
 Break even charts
 Break even point
 Business objectives
 Business planning
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ABC
C and D
 Capital
 Carbon footprint
 Cash flow
 Cash flow statements
 Cash in
 Cash out
 Closing balance
 Contribution
 Debt
 Deed of partnership
 Demand
 Demographic segmentation
 Demographics
 Dividends
 Division of labour
 Contribution per unit
 Copyright
 Corporate social responsibility
 Credit purchases
 Credit Sales
 Customer feedback
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ABC
E and F
 Economic factors
 Factors of production
 Effective service
 Fixed costs
 Employment
 Flotation
 Environmental factors
 Flow production
 Ethical
 Focus groups
 Ethical factors
 Friends and family
 Exchange rates
 Full-time employee
 External recruitment
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ABC
G and H
 Geographic segmentation
 Health and safety
 Grants
 Human resource management
 Green consumerism
 Green working practices
 Growth
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ABC
I, J and K
 Incorporation
 Job production
 Induction training
 Inflation
 Interest rate
 There are no words beginning
with K
 Internal recruitment
 Internet research
 Interview
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ABC
L and M
 Legislation
 Market mapping
 Limited liability
 Market research
 Logistics
 Market Segmentation
 Loss
 Market share
 Loss leader
 Marketing
 Marketing mix
 Memorandum of association
 Minimum wage
 Mortgage
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ABC
N and O
 Net cash flow
 Off the job training
 On the job training
 Opening balance
 Overdraft
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ABC
P
 Partnership
 Private limited company (ltd)
 Part-time employee
 Product portfolio
 Patent
 Product
 Pay
 Price
 Payments
 Promotion
 Penetration pricing
 Place
 Performance management
 Profit
 Personal recommendation
 Promotional mix
 Political factors
 Psychological pricing
 Price skimming
 Public limited company (plc)
 Primary market research
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ABC
Q and R
 Quality
 Raising finance
 Quality assurance
 Receipts
 Quality control
 Recession
 Quality standards
 Recovery
 Questionnaires
 Recruitment
 Resource control
 Retailer
 Retention
 Revenues
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ABC
S
 Sales
 Sole trader
 Secondary market research
 Specialisation
 Shareholders
 Stock exchange
 Sleeping partners
 Supplier feedback
 SMART objectives
 Survey
 Social benefit
 Survival
 Social factors
 Sustainable
 Socio-economic group
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ABC
T and U
 Technological factors
 Unique selling point
 Total costs
 Unlimited liability
 Total quality management
 Trade marks
 Training
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ABC
V, W, X, Y and Z
 Variable costs
 Wholesaler
 Working conditions
 There are no words with X,Y
and Z
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ABC
Advertising
 Within recruitment a method used to attract potential
candidates to apply for a vacant position within a business
 Media used may be wide ranging from local newspapers
and specialist magazines to notices in shop windows or on a
staff board
 Within marketing advertising also refers to a promotional
method that involves the use of media to communicate with
existing and potential consumers
Recruitment
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Related words:
Personal recommendation
123
Interview
ABC
Articles of association
 A formal documentation which outlines the rules and
regulations to be followed when a company is formed
 Outlines:
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
The responsibility of the directors
Nature of the business
Rights of shareholders
 Is completed with the memorandum of association to
form a company
Related words:
Memorandum of association
Private limited company Public limited company
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ABC
Asset
 Anything that is owned by the business
 Can be long term assets that will stay in the business
for longer than a year e.g. premises, vehicles and
machinery
 Or short term assets that will change on a regular
basis e.g. stock, cash and debtors (customers who
owe money)
 A sole trader’s personal assets can be used to pay off
the businesses debts
Related words:
Sole trader Unlimited liability
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Debt
ABC
Bank loan
 A set amount of money provided to a business to be
repaid, with interest, over a predetermined period of
time
 An external source of finance
Raising finance
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Related words:
Overdraft Mortgage
123
Interest rate
ABC
Batch production
 Identical items are produced in groups (batches),
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each item passing through the production process at
the same time
Allows for cheaper and quicker production of
individual items
More uniform products
Variation can be achieved in different batches
Requires a mix of capital (machinery) and labour
resources
Job production
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Related words:
Flow production Factors of production
123
ABC
Break even charts
 A visual representation of total costs and total revenues
identifying the point at which break even is achieved i.e.
where the TC line and the TR line cross
 Break even point is read in units off the horizontal axis
 Can be used to read the loss or profit of a business at given
levels of output
Total costs
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Related words:
Revenues Break even point
123
ABC
Break even point
 The level of output at which the business is making
neither a profit nor a loss, the point at which TC=TR
 Selling Price – Variable Cost (per unit) = Contribution
(per unit)
 Fixed Costs / Contribution (per unit) = Break even
output
 Can be read off the horizontal axis on a break even
chart
Total costs
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Related words:
Revenues Break even chart
123
ABC
Business objectives
 A target that a business wants to achieve within a set
period of time
 For new businesses an objective may be one of
survival before profit and then growth
 Other objectives include market share, effective
service, sales and social benefit
 Objectives should be SMART
Related words:
SMART objectives Survival Profit Growth Social benefit
Market share Effective service
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ABC
Sales
Business planning
 The steps an entrepreneur goes through before
setting up a business, effective planning is important
for short term survival and long term success
 The process of planning will include:




Setting objectives
Raising finance
Cash flow forecast
Calculating break even
Related words:
Business objectives SMART objectives
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Survival
ABC
Capital
 The money invested in a business
 Initially this will be used to cover start-up expenses
such as premises and vehicles
 Can be raised from a number of sources including
personal investments and bank loans
Related words:
Raising finance Asset
Shareholders
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ABC
Carbon footprint
 The total amount of negative emissions e.g.
greenhouse gases emitted by a business as a result of
their operations
 A business with an objective to be environmentally
friendly will take steps to reduce their carbon
footprint
 Actions may include less packaging, sourcing
materials locally and energy efficient sources
Ethical factors
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Related words:
Corporate social responsibility Environmental factors
123
ABC
Cash flow
 The movement of cash into and out of a business
over a period of time
 The relationship between cash inflows and cash
outflows
 Cash flow can be crucial to the survival of a business
Cash in
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Cash out
Related words:
Cash flow statement
123
Net cash flow
ABC
Cash flow statements
 A financial document that shows the cash flowing
into and out of a business over a period of time
 Will show the closing balance at the end of each
period (e.g. a month) to highlight any concerns such
as a negative balance
 Is included in the accounts to report on the
businesses actions and performance to shareholders
and other stakeholders
Cash in
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Related words:
Cash out Cash flow
Net cash flow
123
ABC
Cash in
 The receipt of cash into a business
 Shown on a cash flow statement
 Examples of cash inflows include:
 Sale of goods
 Payment by debtors
 Loans received
 Sale of assets
Cash flow
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Related words:
Cash out Receipts
123
Credit sales
ABC
Cash out
 The transfer of cash from a business
 Shown on a cash flow statement
 Examples of cash outflows include:
 Buying materials
 Paying expenses
 Repaying loans
 Buying capital equipment
Cash flow
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Related words:
Cash in Payments
Credit purchases
123
ABC
Closing balance
 The closing balance on a cash flow is the amount of
money/cash left at the end of a period
 Opening balance + cash inflows – cash outflows =
closing balance
 One month’s closing balance becomes the opening
balance of the next period
Cash flow
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Related words:
Cash flow statement Net cash flow
123
Opening balance
ABC
Contribution (Total)
 The total amount of money contributed first towards
fixed costs and then profit from all goods sold
 Sales Revenue – Total Variable Costs = Total
Contribution
 Can also be calculated as:
 Contribution per unit x number of units
Related words:
Contribution per unit Fixed costs
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Break even point
123
ABC
Contribution per unit
 The amount of money each unit sold contributes towards
fixed costs and once breakeven has been achieved then
contributes to profit
 Selling Price – Variable Cost (per unit) = Contribution per
unit
 Contribution can be used to calculate the break even point
Contribution
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Related words:
Fixed costs Break even point
123
ABC
Copyright
 Copyright is a legal protection for anyone that has produced
work in a range of areas, these include:


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


Literature
Drama
Music
Art
Recordings
Broadcasts
 It is illegal to use copyrighted work without the permission
of the owner
Related words:
Legislation Patent Trademark
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123
ABC
Corporate social responsibility
 CSR is a firm’s decision to accept responsibility to its
stakeholders for its social, environmental and ethical
actions
 A firm will produce a Corporate Social Report to set
targets that will be used to meet its social
responsibilities and to assess how far it has met
previous targets
Ethical factors
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Related words:
Carbon footprint Green working practices
123
ABC
Credit purchases
 Purchases made by a business where they pay the
supplier at a later date e.g. 30 days credit terms
 Credit purchases appear in the cash flow not in the
month the goods are received but in the month the
cash actually flows out of the business
Cash out
Cash flow
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Related words:
Cash flow statement
123
Payments
ABC
Credit sales
Credit sales
 Sales made by a business where the customer’s
payment is after the date of the sale e.g. they buy
now but pay later
 Credit sales appear in the cash flow not in the month
the sale is made but in the month when the cash
actually flows into the business
Cash in
Cash flow
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Related words:
Cash flow statement Receipts
123
Credit purchases
ABC
Customer feedback
 A form of primary market research that involves
collecting opinions directly from the customer
 Methods of collection include:
 Customer satisfaction survey
 Comment forms
 Data collection with registering a product e.g. warranty
Market research
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Related words:
Primary market research
123
Survey
Focus group
ABC
Debt
 The total value of money owed by a business
 Forms of debt include bank loans, overdraft and
trade credit (money owed to suppliers)
 If a business can not cover its debts it may be forced
to sell its assets
 A sole trader may be forced to sell personal assets to
cover the businesses debts
Related words:
Unlimited liability Asset Sole trader
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Capital
ABC
Deed of partnership
 A legally binding agreement between two or more
people who are in business together
 It describes how the partnership will be run and the
rights and duties of the partners
 States basic information such as the business name
and the names of the partners, the type of business
and business address
 The deed will also set out money invested and how
profits will be shared
Partnership
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Related words:
Sleeping partner Limited liability
123
ABC
Demand
 Demand shows the amount of goods or services that
a consumer is willing and able to buy at a given price
over a period of time. For a normal good as price
falls demand will rise and vice versa
 Factors affecting demand include price, competitors’
actions, consumer incomes, the success of the firm’s
marketing and seasonal factors
Related words:
Marketing Price Product
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ABC
Demographic segmentation
 Demographic segmentation looks at the social and
economic characteristics of customers and
subgroups of the population
 Market researchers will then attempt to create a
clear picture of the type of consumer that will make
up these segments
 Examples might include age, sex or income
Market segmentation
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Related words:
Geographic segmentation
Demographics
123
Socio-economic group
ABC
Demographics
 Demography is the statistical study of human
populations and demographic factors are those that
influence these populations
 Firms will have to take into account population
trends. These include:



An increase in the global population size
An increase in the average age of UK society
Falling EU birth rates
Social factors
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Related words:
Demographic segmentation
123
Socio-economic group
ABC
Dividends
 A percentage of profit paid to a share holder as a reward for
their investment
 Ordinary shareholders are only paid a dividend if the
business can afford it
 Higher dividends are paid to ordinary shareholders when
the business has performed well
Private limited company
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Related words:
Public limited company
123
Shareholders
ABC
Profit
Division of labour
 Work is broken into small tasks and each employee
is given responsibility for a single or limited number
of tasks
 The employees become specialised in their task(s)
 Can be monotonous
 Often associated with flow production
Related words:
Factors of production Specialisation
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Flow production
ABC
Economic factors
 The economic environment consists of the key economic
factors that influence the behaviour of businesses and
their customers. These include:





Interest Rates
Exchange Rates
Inflation
Unemployment
Economic Growth
Recession
Recovery
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Related words:
Employment Interest rate
123
Inflation
ABC
Exchange rate
Effective service
 Customer service involves meeting or exceeding
customer expectations
 Providing an effective service can be a business
objective in its own right
 It will also help achieve other objectives such as sales
and market share as satisfied customers are likely to
return and spread positive word of mouth
Related words:
Business objectives SMART objectives Survival Profit
Social benefit Sales Market share
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ABC
Growth
Employment
 The number of people who are actively engaged in
work
 Employment creates wealth in the economy
 If employment is high more people have jobs and
therefore money which is good for the demand of
goods and services
 People, of working age, without jobs are classed as
unemployed
Economic factors
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Related words:
Recession Recovery Interest rate
Exchange rate
123
ABC
Inflation
Environmental factors
 The variety of factors that impact on the
environment due to the operations of organisations
 This will include how they impact on:


The natural environment – the natural resources that firms exploit to
produce goods and services
The built environment – the man-made surroundings that provide the
setting for the production of goods and services
 Issues include sources of energy, waste management, the use
of eco-friendly products and organic produce
Related words:
Green consumerism Green working practices Carbon footprint
Corporate social responsibility
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ABC
Ethical
 The moral principles that support the decision making
process for an entrepreneur and within the business
 Being ethical might mean that a business will have to
pay more for its supplies and turn down profitable
contracts
 However, it can act as a USP helping to attract
customers
 A business may set an objective of behaving in an
ethical way
Related words:
Business objectives Sustainable
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Ethical factors
123
ABC
Ethical factors
 The variety of factors that impact on the ethical
behaviour of organisations
 Ethical factors are often influenced by the attitudes of
society
 Factors include:



Treating stakeholders fairly e.g. Employees, suppliers,
customers
Respecting the environment
Supporting good causes
Carbon footprint
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Related words:
Corporate social responsibility
123
Ethical
ABC
Exchange rates
 The value of a currency in terms of another e.g. £ : $
 If a country is experiencing a strong exchange rate
e.g. the £ is strong, then imports will be cheap and
exports expensive SPICED (strong pound: imports cheaper, exports dearer)
 If a country is experiencing a weak exchange rate e.g.
the £ is weak, then imports will be expensive and
exports cheap WPIDEC (weak pound: imports dearer, exports cheaper)
Economic factors
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Related words:
Recession Recovery Employment
Inflation
123
ABC
Interest rate
External recruitment
 External recruitment occurs when candidates for a
position are recruited from outside of the
organisation
 This increases the talent available and provides new
ideas
 However, it increases recruitment costs and can
upset internal candidates
Recruitment
Related words:
Internal recruitment Advertising
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Personal recommendations
ABC
Factors of production
 The inputs that go into creating goods and services
 The four factors of production are:
 Capital
 Entrepreneurial skill
 Land
 Labour
Related words:
Job production Batch production
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Flow production
123
ABC
Fixed costs
 Costs to a business that stay the same regardless of
output
 Fixed costs include rent & rates, salaries and interest
payments
 Fixed costs are shown as a horizontal line on a break-
even chart
Variable costs
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Related words:
Total costs Contribution
123
Contribution per unit
ABC
Flotation
 The process of becoming a public limited company
by issues shares on a stock market
 Involves selling of a percentage of the business
 Benefits include access to capital and raising the
business’ profile
 There are also additional responsibilities and costs
Incorporation
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Related words:
Shareholders Stock exchange
123
Public limited company
ABC
Flow production
 A capital intensive production technique in which items
flow along a production line in a continuous process
 Suitable for mass production


Large scale
Identical items
 Uses specialist machinery
 Workers are each responsible for a small step along the
process, this involves:

Specialisation and Division of Labour
Job production
www.time2resources.co.uk
Related words:
Batch production Factors of production
123
ABC
Focus groups
 A method of primary market research in which a
group of people are asked about their views, opinions
and reactions towards an aspect of a business e.g. a
product or service, advertisement, idea or packaging
 Allows the business to collect detailed feedback
 Questions are asked in a group environment where
participants are able to share opinions
Market research
www.time2resources.co.uk
Related words:
Primary market research
123
Customer feedback
ABC
Friends and family
 A potential source of finance for small business
 May be a loan which is to be repaid or investment to
help a new business cover start-up costs
 The money comes from a friend of the entrepreneur
or family member
 Money available is likely to be limited
Raising finance
www.time2resources.co.uk
Related words:
Sole trader Capital
123
Unlimited liability
ABC
Full-time employee
 A person who is contracted to work over 30 hours
per week for a business
 Full-time employees may be more committed
towards their jobs and better able to take advantage
of training and promotion opportunities
Recruitment
www.time2resources.co.uk
Related words:
Part-time employees
123
Retention
ABC
Geographic segmentation
 Defines market categories based on where people
live e.g. regions, cities or neighbourhoods
 People in different geographical areas display
different characteristics
 Many small businesses and business start-ups will
target one geographical area at first and, if
successful, expand into other areas
Market segmentation
www.time2resources.co.uk
Related words:
Demographic segmentation
123
Socio-economic group
ABC
Grants
 Financial support offered, normally by the
Government, to entrepreneurs to ease the costs
associated with start-ups
 Grants will normally be awarded to help fund a
specific project or aspect of start-up
 Grants often do not need to be repaid and may be
more accessible to not-for-profit or social enterprises
Related words:
Raising finance Sole trader
www.time2resources.co.uk
123
Capital
ABC
Green consumerism
 Actions taken by customers to consider ethical and
environmental factors when making buying
decisions
 Actions can be positive e.g. Favouring organic
produce or buying fair trade
 Or negative e.g. avoiding businesses involved in child
labour or with poor environmental records
Related words:
Green working practices
Environmental factors
www.time2resources.co.uk
123
Ethical factors
ABC
Green working practices
 Actions taken by businesses to behave in an
environmental and socially responsible manner
 Actions may include:




Reducing carbon footprint
Recycling waste materials
Sustainable energy sources
Reduced packaging
Green consumerism
www.time2resources.co.uk
Related words:
Environmental factors
123
Ethical factors
ABC
Growth
 A business objective often set for the medium to long
term
 After a business has achieved survival and profit it
may then set an objective of growth
 Growth can be measured by a number of factors
including:




Market share
Market size
Profit
Number of employees
www.time2resources.co.uk
Related words:
Business objectives SMART objectives
Survival Profit
Social benefit Sales Market share
Effective service
123
ABC
Health and safety
 Legislation that looks after the well being (Health
&Safety) of employees in the workplace
 There are significant costs associated with H&S
e.g. safety inspections and training
 Accidents in the workplace have been substantially
reduced due to H&S Laws
 Laws include:
 1974 Health and Safety at Work Act; 1981 Health and Safety Regulations; 1996 Health
and Safety Regulations
Legislation
www.time2resources.co.uk
Related words:
Working conditions
Minimum wage
123
ABC
Human resource management
 The function within a business that relates to the
management and strategies involved in dealing with
individuals that make up the workforce
 HRM must ensure that there are enough employees
with the required skills to maintain the running of
the business on a day to day basis
Recruitment
www.time2resources.co.uk
Related words:
Retention Pay Training Working conditions
Performance management
123
ABC
Incorporation
 A business with a separate legal identity from its
owners
 The business can own assets, have liabilities and make
legally binding contracts in its own right
 Incorporated businesses include private and public
limited companies
 Incorporation is the process of becoming incorporated
Private limited company
www.time2resources.co.uk
Related words:
Public limited company
Shareholders
123
Flotation
ABC
Limited liability
Induction training
 Introductory training for employees new to an
organisation
 It provides staff with information that helps them to
settle in and to understand the culture of a firm
 However, it will increase initial cost and is often less
personal than training from immediate colleagues or
supervisors
Training
www.time2resources.co.uk
On the job
Related words:
Off the job Human resource management
123
ABC
Inflation
 A general rise in prices or a fall in the value of
money
 There are two main types of inflation:
o Cost push – an increase in input prices e.g. raw materials and wages
o Demand pull – an increase in demand allowing firms to raise prices
 There are two main measurements:
o Retail Price Index (RPI) – a measurement of a ‘basket’ of goods and
services representative of what people buy in the UK
o Consumer Price Index (CPI) – similar to RPI but it excludes housing
costs. The Government has set a target of 2% for CPI
Economic factors
www.time2resources.co.uk
Related words:
Recession Recovery Employment
Exchange rate
123
ABC
Interest rate
Interest rate
 The cost of borrowing or reward for saving money
 Banks will charge businesses interest on bank loans
and overdrafts
 High interest rates may encourage saving and
discourage spending
Economic factors
www.time2resources.co.uk
Related words:
Recession Recovery
Exchange rate
Employment
123
ABC
Inflation
Internal recruitment
 Internal recruitment occurs when candidates for a
position are recruited from within the organisation
 This will lower recruitment costs, improve
promotion prospects and entail a quicker process
 However, it reduces talent available and limits the
number of applicants available for a position
Recruitment
Related words:
External recruitment Advertising
www.time2resources.co.uk
123
Personal recommendations
ABC
Internet research
 The use of the world wide web to collect primary or
secondary data
 Secondary sources could include the census for
demographic data, company accounts of competitors
or market intelligence reports
 Primary sources could include social network blogs
for customer feedback or online surveys
Market research
www.time2resources.co.uk
Related words:
Secondary market research
123
Demographics
ABC
Interview
 This entails a question (and answer) session with a
candidate, normally using the same questions for each
candidate
 It is the most commonly used method of selecting an
employee for a job
 Should be a two way process allowing the candidate to find
out about the business and job as well as the employer
assessing the suitability of the candidate
Recruitment
www.time2resources.co.uk
Related words:
Advertising Human resource management
123
ABC
Job production
 The production of one off items to meet the needs of




each individual customer
Cheap and easy to set up, but more expensive to
produce
Often a specialist service and therefore may be able
to charge a premium price
Time consuming to produce; tend to be labour
intensive
Meet specific needs ofRelated
customers
words:
Batch production
www.time2resources.co.uk
Flow production
Factors of production
123
ABC
Legislation
 Involves creating and enacting laws in order to
protect individuals, firms and society as a whole
 Laws are passed through UK Acts of Parliament
and the UK is also subject to EU law
 Legislation affecting businesses includes:



Health and Safety
Employment Law e.g. Minimum wage
Copyright, trademarks and patents
Health and safety
www.time2resources.co.uk
Related words:
Minimum wage Copyright
123
Patent
ABC
Trademark
Limited liability
 An investor’s liability/financial commitment is
limited to the total amount invested or promised in
share capital
 An investor’s personal belongings (assets) are
protected
 This is one of the advantages of being a company
rather than a sole trader
Private limited company
www.time2resources.co.uk
Related words:
Public limited company Unlimited liability Asset
Incorporation
123
ABC
Logistics
 The process of coordinating resources:
 Moving materials to the right place at the right time to meet
production targets
 Moving finished goods to the right place at the right time to
meet customer demands
 Important aspect of operational efficiency both
during the production process and at the end to
distribute goods
Related words:
Factors of production Resource control
www.time2resources.co.uk
123
Effective service
ABC
Loss
 The deficit experienced by a business when total
costs exceed total revenue
 A firm making a loss is likely to take action to try and
reduce this, including raising prices or reducing costs
 Loss = Total Revenue – Total Costs (where TR<TC)
Revenue
www.time2resources.co.uk
Related words:
Total costs Profit Break even chart
123
ABC
Loss leader
 A pricing tactic that involves selling products at or below
the cost of making the product
 Loss leaders are commonplace in retailing. The idea is to
entice the customer into the store in the hope that they will
spend on other, full priced products
 Loss leaders are likely to be heavily advertised so that
potential customers are aware of the low price
Price
Price skimming
www.time2resources.co.uk
Related words:
Penetration pricing
123
Psychological pricing
ABC
Market mapping
 Plotting the key variables that differentiate products
within the market against each other
 A variety of market conditions might be represented
on the map to identify trends and the relationship
between consumers and products e.g. the price of the
product versus the quality of the product
 This can help a business identify problem areas or
gaps in the product range that it produces
Marketing
www.time2resources.co.uk
Related words:
Market segmentation
Product portfolio
123
ABC
Market research
 The collection, collation and analysis of data and
information regarding a particular market
 It can include both primary and secondary research
 It is very important in order to inform an
organisation regarding their marketing mix
Related words:
Primary market research Secondary market research
Questionnaires
Focus groups Survey Supplier feedback Customer feedback
Internet research
www.time2resources.co.uk
123
ABC
Market segmentation
 Market segmentation is the splitting of customers
into categories in order to identify different types of
consumer e.g. by age, gender, location or income
 Understanding of market segmentation allows a
business to better target its marketing mix to meet
the needs of its customers
Related words:
Geographic segmentation
Demographic segmentation
Socio-economic group
www.time2resources.co.uk
123
ABC
Market share
 The proportion of total market sales that a particular firm
has
 Calculated as:
 Sales of firm / Total market sales x 100
 A business with an objective of growth may take actions to
increase market share e.g. increase promotion, change
price, improve the product
Related words:
Business objective SMART objective
www.time2resources.co.uk
123
Marketing
ABC
Marketing
 The management process that allows a firm to
identify, satisfy and revisit the requirements of the
customer (normally at a profit)
 Marketing involves carrying out market research,
designing an integrated marketing mix and
reviewing the competitiveness of the business
Related words:
Market segmentation Market research
www.time2resources.co.uk
123
Marketing mix
ABC
Marketing mix
 The combination of the 4ps of marketing through which a firm achieves
its marketing objectives
 The mix is the integration of:




Product
Price
Place
Promotion
 To be effective a marketing mix must be integrated i.e. each component
must complement the others
Product
www.time2resources.co.uk
Related words:
Price Place Promotion
123
ABC
Memorandum of association
 A formal document required to form a company and
become incorporated
 Outlines details of the company’s activities and
shareholders
 Is registered at Companies’ House
Related words:
Articles of association
Private limited company Public limited company
www.time2resources.co.uk
123
ABC
Minimum wage
 The lowest amount of money a business can legally
pay an employee
 From October 2012 the minimum wage in the UK is:




£6.19 - the main rate for workers aged 21 and over
£4.98 - the 18-20 rate
£3.68 - the 16-17 rate for workers above school leaving age but
under 18
£2.65 - the apprentice rate, for apprentices under 19 or 19 or
over and in the first year of their apprenticeship
Source: http://www.direct.gov.uk
Legislation
www.time2resources.co.uk
Related words:
Pay Retention Working conditions
123
ABC
Mortgage
 A long term source of finance where the loan is
secured against a specific asset such as a house or
building
 A mortgage is paid back with interest over a set
period of time e.g. 25 years
 Failure to make payments can result in the secured
asset being repossessed by the lender
Raising finance
www.time2resources.co.uk
Related words:
Bank loan Overdraft
Capital
123
Interest rate
ABC
Net cash flow
 The balance of one month’s total cash inflows in
relation to that month’s total cash outflows
 Cash Inflows – Cash Outflows = Net Cash Flow
 Shown on a cash flow forecast and cash flow
statement
Cash flow
www.time2resources.co.uk
Cash in
Related words:
Cash out Opening balance Closing balance
123
ABC
Off the job training
 Any form of education, to improve an employee’s
performance at work, that takes place away from the
workplace
 Specialists can deliver a higher quality of training for
workers
 However, this can be expensive
Training
On the job
www.time2resources.co.uk
Related words:
Induction training Human resource management
123
ABC
On the job training
 Any form of education, to improve an employee’s
performance at work, that takes place within the
workplace
 This can be cost effective, often being delivered by
people from within the organisation
 Might not be as good quality as external training but
will be specific to the business
Training
Related words:
Induction training Off the job Human resource management
www.time2resources.co.uk
123
ABC
Opening balance
 The opening balance on a cash flow is the amount of
money/cash left at the end of the previous period
 Opening Balance + Cash Inflows – Cash Outflows =
Closing Balance
 One month’s closing balance becomes the opening
balance of the next period
Cash flow
www.time2resources.co.uk
Related words:
Cash flow statement Net cash flow
123
Closing balance
ABC
Overdraft
 The facility to borrow money, normally from a bank,
in the short term
 An overdraft can be used to help short term cash
flow problems
 Interest is payable on the amount overdrawn
Raising finance
www.time2resources.co.uk
Related words:
Bank loan Capital Closing balance
123
ABC
Interest rate
Partnership
 When two or more people join together to set up a
business as a partnership
 Each partner will contribute towards start up costs
and be involved in decision making
 Each partner would normally have unlimited liability
Unlimited liability
www.time2resources.co.uk
Related words:
Deed of partnership
123
Sleeping partners
ABC
Part-time employee
 A person who is contracted to work less than 30
hours per week for a business
 Part-time employees can offer greater flexibility to a
business and may be a more affordable option for a
new business
Related words:
Human resource management Full-time employees
www.time2resources.co.uk
123
Working conditions
ABC
Patent
 A patent grants the holder, an individual or business, the
sole right to use unique features of a new product or
process
 It gives the holder the right to stop others from making,
using, importing or selling the innovation or invention
without prior permission
Legislation
www.time2resources.co.uk
Related words:
Copyright Trademark
Unique selling point
123
ABC
Pay
 The monetary reward given to employees in return
for their services
 Pay can serve to motivate employees
 Pay can be in the form of a wage or salary and can
also include bonuses, performance related pay or
commission
 In the UK there is a minimum rate of pay known as
the minimum wage
Related words:
Human resource management Retention
Minimum wage
www.time2resources.co.uk
123
Working conditions
ABC
Payments
 Any money flowing out of the business to purchase
equipment or meet day to day expenses e.g. wages
and raw materials
 Payments are shown as a cash outflow on a cash flow
statement
 Payments may be made in cash i.e. at the time of the
transaction or on credit i.e. after the transaction
Cash flow
www.time2resources.co.uk
Related words:
Cash flow statements Cash out
123
Credit purchases
ABC
Penetration pricing
 Setting a low initial price for a new product in order
to get a foothold in the market and gain market share
 Once the product has been launched and built up a
customer base the firm may raise the price
 May be a suitable pricing strategy for entering into a
mass market
Price
www.time2resources.co.uk
Related words:
Price skimming Loss leader
Psychological pricing
123
ABC
Performance management
 Activities taken by management to measure how
effectively employees are carrying out their duties
 Performance management or appraisal takes place to
look at the performance of staff over a period of time
 Management will review performance against agreed
targets
 Sometimes pay is partly based on performance
(Performance Related Pay)

Allows the firm to identify
problem
Related
words:areas with staff and take
action resource
to reduce
these problems
Human
management
Working conditions Pay Retention
www.time2resources.co.uk
123
ABC
Personal recommendation
 A form of recruitment where an existing employee
suggests a personal contact for a vacancy
 Friends can act as a reference for new employees as
they have an insight into the skills or integrity of a
potential new recruit
 A cheap form of recruitment
Recruitment
www.time2resources.co.uk
Related words:
Internal recruitment External recruitment
123
ABC
Advertising
Place
 The component within the marketing mix that
defines both the physical location where a product is
available as well as the distribution channel it has
travelled through, from manufacturer to consumer
 Intermediaries (middle men) within the distribution
channel include wholesalers and retailers
Related words:
Marketing mix Wholesaler
www.time2resources.co.uk
123
Retailer
ABC
Political factors
 The political environment consists of the key political
factors that influence the behaviour of businesses and
their customers. These include:


The provision of products by the Government
Government actions
Regulation
 Taxation
 Subsidies


Enlargement of the EU
Economic factors
www.time2resources.co.uk
Related words:
Legislation
Environmental factors
123
ABC
Price
 The component within the marketing mix that
defines the amount of money that is paid for a
good or service by the customer
 A business may try to compete on price by using
tactics such as penetration pricing or loss leader
Loss leader
www.time2resources.co.uk
Related words:
Price skimming Penetration pricing
Marketing mix
123
Psychological pricing
ABC
Price skimming
 Setting a high initial price for a new product in order to
recoup high development costs
 When a firm releases a new product it may charge a high
price targeting a segment of the market known as ‘early
adopters’, once this market has been ‘skimmed off’ the
business may lower price
 Firms may base their initial promotional campaign around
this idea, trying to create a ‘must have’ mentality amongst
their target market
Price
Loss leader
www.time2resources.co.uk
Related words:
Penetration pricing
123
Psychological pricing
ABC
Primary market research
 Primary market research (field research) involves the
collection of first hand data that did not exist before
 Therefore it is original data
 It is collected for the specific needs of the business
 Examples include questionnaires and focus groups
Market research
www.time2resources.co.uk
Related words:
Secondary market research
Survey
Questionnaire
123
ABC
Focus group
Private limited company (ltd)
 An incorporated business that is owned by
shareholders who tend to be family and friends of
the entrepreneur (s)
 Shareholders in the business have limited liability
 The company must have Ltd after its name
Related words:
Limited liability Public limited company Shareholders
Memorandum of association Articles of association Dividend
www.time2resources.co.uk
123
ABC
Product portfolio
 This looks at the range of products and brands that a
firm has under its control
 A business may analyse its portfolio to help identify
where every single one of its products is positioned
in the market
 Helps inform future marketing decisions
Marketing
www.time2resources.co.uk
Related words:
Product Unique selling point
123
ABC
Product
 The component of the marketing mix that looks at the
goods and services that a firm provides


Goods are physical or tangible products, you can touch them e.g. a
car or a television.
Services are unphysical or intangible, they cannot be touched e.g.
financial consultancy or teaching
 Firms may try to make their products stand out from the
competition by having a unique feature (a USP)
Marketing mix
www.time2resources.co.uk
Related words:
Product portfolio Unique selling point
123
ABC
Profit
 The surplus money made by a business when total
revenue exceeds total costs
 Calculated as:
 Total Revenue – Total Cost
 A firm may attempt to increase profit by:
 Reducing costs e.g. Find a cheaper supplier
 Increase revenue e.g. Introduce new promotions or short term
pricing tactics
Related words:
Business objective Revenue Total cost
www.time2resources.co.uk
123
Loss
ABC
Promotion
 This is that part of the marketing mix that informs and
persuades customers about the product in order to sell that
product
 A firm will look at its promotional mix in order to increase
the sales of its products
 Promotion is designed to create Awareness, Interest, Desire
and Action (AIDA)
Related words:
Marketing mix
Promotional mix
www.time2resources.co.uk
123
Demand
ABC
Promotional mix
 The combination of promotional activities that a firm
uses in order to create consumer awareness and
generate sales
 The promotional mix includes:





Public Relations
Branding
Sales Promotions e.g. 3 for 2
Direct Selling
Advertising
Related words:
Marketing mix Promotion
www.time2resources.co.uk
123
Demand
ABC
Psychological pricing
 A pricing tactic designed to make the consumer think
that the product is cheaper than it actually is hence
enticing the customer into making a purchase
 A common example of psychological pricing is when
a firm charges £9.99 rather than £10.00
Price
www.time2resources.co.uk
Related words:
Price skimming Penetration pricing
123
Loss leader
ABC
Public limited company (plc)
 An incorporated business that is able to sell shares
on the stock exchange
 Shareholders in the business have limited liability
 The business must have a minimum of £50,000 in
share capital and ‘plc’ after its name
Related words:
Limited liability Private limited company Shareholders
Memorandum of association Articles of association Dividend
www.time2resources.co.uk
123
ABC
Quality
 Quality means the ability of a product or service to meet
customers’ expectations
 Customers’ interpretation of quality may be influenced by a
number of factors including:




Price
Brand
Customer’s personal expectations and experiences
Nature of product or service
Related words:
Quality control Quality assurance Quality standards
Total quality management
www.time2resources.co.uk
123
ABC
Quality assurance
 The checking of a product or service at each stage of its
production e.g. as it travels along a production line
 Aims to avoid mistakes by getting the product right first
time
 It is reliant upon self-checking
 It can be an expensive process
Related words:
Quality control Quality
Quality standards
Total quality management
www.time2resources.co.uk
123
ABC
Quality control
 The checking of a good or service before it is
delivered to a customer i.e. at the end of the
production process
 It normally relies on an inspection process
 As the product is only checked at the end it can lead
to a high amount of waste
Related words:
Quality Quality assurance Quality standards
Total quality management
www.time2resources.co.uk
123
ABC
Quality standards
 A system of accreditation that a firm can use to show that
they have procedures in place to achieve a certain level of
quality
 The emphasis of the standards is on the implementation of
quality processes and procedures
 Examples include:


ISO9000
Kite marks
Quality control
www.time2resources.co.uk
Related words:
Quality assurance Quality
Total quality management
123
ABC
Questionnaires
 A form of primary market research that involves a
set of predetermined questions to be answered by
the respondent
 May include open and closed questions, but
primarily closed i.e. choosing from a number of
possible answers rather than writing freely
 A relatively easy way to collect consumer opinions
Market research
www.time2resources.co.uk
Related words:
Primary market research Survey
123
Customer feedback
ABC
Raising finance
 The options available to a business when seeking to
raise funds to support start-up or future growth
 Finance may take internal or external forms:


Internal sources of finance include: Retained profits that can
be ploughed back into the business
External sources of finance include: Bank overdrafts and loans,
family and friends, shareholders, government grants
Bank loan
www.time2resources.co.uk
Overdraft
Related words:
Mortgage Friends and family Grants
123
ABC
Receipts
 Any money flowing into the business from the sale of
goods or services or from investments
 Receipts are shown as a cash inflow on a cash flow
statement
 Receipts may be received in cash i.e. at the time of
the transaction or on credit i.e. after the transaction
Cash flow
www.time2resources.co.uk
Related words:
Cash flow statement Cash in Credit sales
123
ABC
Recession
• The rate of economic growth starts to fall due to a
downturn
• The Government state that recession is officially
two quarters of negative economic growth
• Characterised by:
Falling demand
o Unemployment begins to rise and some firms will go out of business
o Confidence in the economy is low and most firms will reduce
investment
o
Economic factors
www.time2resources.co.uk
Related words:
Recovery Employment
Exchange rate
123
Interest rate
ABC
Inflation
Recovery
 The rate of economic growth starts to rise due to an
upturn in economic activity
• Characterised by:
Rising demand
o Unemployment begins to falls
o Confidence in the economy is high and some firms will start to invest
in expansion plans
o
Economic factors
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Related words:
Recession Employment
Exchange rate
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Interest rate
ABC
Inflation
Recruitment
 The steps undertaken by a business to identify a
vacancy and attract suitable candidates
 This can be internal or external recruitment
 Effective recruitment is an important aspect of
achieving operational efficiency
Related words:
Internal recruitment External recruitment Advertising
Personal recommendations
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ABC
Resource control
 The process of ensuring all the factors of production
are coordinated effectively to meet operational
objectives
 Resources include:




Labour
Equipment
Land
Stock
Logistics
Related words:
Assets Human resource management
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Factors of production
ABC
Retailer
 An organisation that sells goods or services to the
general public or end user
 Retailers are at the end of the channel of distribution
 They can act as an intermediary between producers,
wholesalers and the consumer
Related words:
Marketing mix Place Wholesaler
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ABC
Retention
 The ability to keep workers
 High retention means that there is an established
workforce who are staying with the business for a
long period of time
 Because labour turnover is low this saves on
recruitment and training costs
Related words:
Human resource management Recruitment Pay Working conditions
Performance management
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ABC
Revenues
 The money coming into a business from the sale of
goods or services
 Calculated as:
 Selling price x quantity sold
 For a business to make a profit total revenue must
be higher than total costs
Total costs
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Profit
Related words:
Loss Break even point
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Break even charts
ABC
Sales
 The process of selling goods and services to
customers in exchange for money
 Sales generate revenue for a business
 A business may set an objective to achieve ‘x’ amount
of sales within ‘y’ amount of time
 Individuals within a business may also be set sales
targets
Related words:
Business objectives SMART objectives Survival Profit
Social benefit Market share Effective service
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ABC
Growth
Secondary market research
 Secondary market research (desk research) is research
that has already been undertaken by another
organisation and therefore already exists
 It may not meet the exact needs of the business but is
often more comprehensive than small scale primary
research
 Examples include business accounts, market
intelligence reports and census figures
Market research
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Related words:
Primary market research
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Internet research
ABC
Shareholders
 Investors who are part owners of a company
 Shareholders will receive a dividend, a share of the profit,
in return for their investment
 Shareholders have a voting right proportional to the
number of shares held
 Liability is limited to the sum invested
Limited liability
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Related words:
Private limited company
Dividend
Public limited company
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ABC
Sleeping partners
 A person who has invested in a partnership but is not
involved in the day to day running of it
 May still be involved in major decisions and will
enjoy a share of the profits
Partnership
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Related words:
Deed of partnership
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Capital
ABC
SMART objectives
 An acronym used to frame the goals of a business
 Smart objectives will be:
 Specific – clearly set out so employees understand what the
objective is
 Measureable – to know when the objective is achieved
 Achievable – a belief that objectives are attainable
 Realistic – employees should be able to carry out tasks to meet
the objective
 Time-based – setting a target date
Related words:
Business objectives Survival Profit Growth
Social benefit Sales Market share Effective service
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ABC
Social benefit
 An objective to provide support for a good cause
 This may include:
 Charity
 Community
 Research
 A social enterprise will use all profits for social benefit
 A profit orientated business may have an objective of
supporting a social benefit
Related words:
Business objectives SMART objectives Survival Profit
Sales Market share Effective service
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ABC
Growth
Social factors
 Changes to the characteristics and attitudes of society over
time
 A business should be aware of trends in social factors and
be able to change the composition of its marketing mix in
order to meet the needs of a changing market
 Possible changes resulting from social trends include:






Ethical trading
Sourcing of sustainable materials
Demographics
Reduction/recycling of packaging
Online retailing
Retailer purchasing power
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Related words:
Demographics
Demographic segmentation
Socio-economic group
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ABC
Socio-economic group
 A way of dividing the population into groups based on the income of
the head of the household. This is used for market research purposes





A – Higher managerial e.g. company directors
B – Intermediate managerial e.g. bank manager
C2 – Supervisory and junior management
D – Skilled manual e.g. plumbers, electricians etc.
E – Dependent on the state e.g. unemployed, pensioners etc.
 A way of targeting a market segment based on people’s lifestyle
Related words:
Market segmentation
Demographic segmentation
Geographic segmentation
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ABC
Sole trader
 An individual who owns and runs their own business
 A sole trader has unlimited liability and is therefore
responsible for all the debts of the business
 A sole trader is unincorporated i.e. The sole trader and the
business have the same legal identity
Unlimited liability
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Related words:
Capital Asset Debt
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Friends and family
ABC
Specialisation
 An employee, as a result of division of labour,
performs a single or limited number of tasks in
which they become experts/specialists
 Can result in greater efficiency and hence lower the
cost of production
 Often associated with flow production
Related words:
Factors of production Division of labour
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Flow production
ABC
Stock exchange
 The place where shares of companies can be traded,
provides a market place for brokers and traders
 When a business becomes a PLC it floats its shares
on the stock exchange
Public limited company
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Related words:
Incorporation Flotation
123
Shareholders
ABC
Supplier feedback
 A form of primary market research that involves
gathering data from a supplier of goods and services
 This may be a retailer, for example, who has dealt
directly with the public and can feed back to the
manufacturer
Related words:
Market research Primary market research
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Customer feedback
ABC
Survey
 A form of primary market research that involves a set
of predetermined questions to be answered by the
respondent
 Normally questions are short and closed
 Often provides respondents with options to choose
from
 Surveys can be:
 Postal
 Telephone
 Face–to-face
 On-line
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Related words:
Market research Primary market
research Questionnaire
Customer feedback
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ABC
Survival
 Business objectives focussed on ensuring that a
business maintains operations
 This is the most important objective for a start-up
business
 In order to survive a business must maintain a
positive cash flow
 In the short term a business can survive if making a
loss as long as it has a positive cash flow
Related words:
Business objectives SMART objectives
Profit Growth
Social benefit Sales Market share Effective service
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ABC
Sustainable
 A business objective of behaving in an
environmentally and socially responsible manner
will include an objective of using sustainable
resources i.e. those that will be available for a
continued period of time
 Sustainable actions are linked to green working
practises, for example, this may include using wind
or solar power
Business objectives
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Related words:
Environmental factors
Ethical factors
123
Green consumerism
ABC
Technological factors
 The technological environment consists of the key
technological factors that influence the behaviour of
businesses and their customers
 Technological change will impact on:



Marketing opportunities
The culture of the business
The processes and systems used within the business
 Organisations must take into account changes in
technology if they are to remain competitive
Related words:
Social factors Flow production
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Training
ABC
Total costs
 All of the costs associated with the provision of a
good or service
 Total Costs = Fixed Costs + Variable Costs
 In order for a business to achieve a profit total
revenue must be higher than total costs
Variable costs
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Related words:
Fixed costs Contribution Contribution per unit
Break even chart Break even point
123
ABC
Revenue
Total quality management
 TQM is a quality assurance system in which each employee
is a link in the chain and treats the next link as if they were
an external customer
 TQM sees quality as the responsibility of all employees
Quality
Quality assurance
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Related words:
Quality standards Resource control
123
ABC
Training
Trade marks
 A trademark protects a feature that distinguishes your
business from others. It might include:




Words
Pictures
Logos
Colours or shapes
 It can be used as a marketing tool so that customers can
recognise your business and helps build brand loyalty
Related words:
Legislation Patents Copyright
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ABC
Training
 The process of equipping employees with the skills
and knowledge necessary to carry out their job
effectively
 Types of training include induction, off-the-job and
on-the-job
Induction training
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Related words:
On the job Off the job Human resource management
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ABC
Unique selling point
 A USP is something that distinguishes a firm’s
product from those of its competitors
 Firms try to make their product different to the
competition by adapting the actual product in some
way or by distinguishing the product through
advertising and branding
 This is known as product differentiation
Marketing
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Related words:
Product Product portfolio Patent
123
ABC
Unlimited liability
 The owners of a business are responsible for the total
amount of debt of the business
 The owner may lose their personal belongings if the
value of these is needed to cover the debts of the
business
 Personal belongings could include car and house
Limited liability
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Related words:
Sole trader Partnership Asset Debt
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ABC
Variable costs
 Costs to a business that change in relation to output
 Variable costs include materials, wages and
distribution
 Variable costs are shown as a diagonal line from the
origin on a break even chart
Fixed costs
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Related words:
Total costs Contribution
Contribution per unit
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ABC
Wholesaler
 Wholesalers buy large quantities of supplies from
producers and sell them on in smaller quantities
 They act as an intermediary (middle man) between
manufacturers and retailers and consumers in the
distribution channels
Related words:
Marketing Place Retailer
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ABC
Working conditions
 The characteristics of the environment in which
employees work and the way in which they are
treated by the employer
 Conditions will include:




physical considerations e.g. facilities
monetary rewards e.g. pay
management styles
training opportunities
Pay
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Retention
Related words:
Training Human resource management
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ABC