BASIC BUSINESS TERMINOLOGY

Formal line of authority, shown in an organisation chart, through which orders are passed down

The inputs (resources)necessary for the production process:land, labour, capital and enterprise

#of subordinates that are overseen by a manager.# of people directly accountable to the manager

Various methods that businesses can use to achieve their mission or vision

describes the extent to which a person is held responsible for the success or failure of a task

Means there are only a few layers of hierarchy and managers have a wide span of control

 may be referred to as supervisors, team leaders or leading hands. 

the consideration of ethical and environmental issues relating to business activity

 focus on production processes , e.g. oil, the processes are quite different

Which sector specialises in providing services to their customers e.g. banking & education

the removal of government rules and regulations which constrain an industry

All non-natural resources used in the production process. E.g. money, machinery, factories

Policies that deal with taxation and government expenditure 

occurs when the general price level in an economy continuously rises 

A levy on the purchase of goods and services e.g. GST, excise duties

Cost measured in terms of the best alternative foregone when a choice is made

An organisation's long-term aspirations

Declaration of an organisation's overall purpose. I forms the foundation for setting objectives

analytical tool used to asses internal strengths/weaknesses external opportunities/threats

government policies concerned with changing interest rates to control money supply

measure of the price of money in terms of the amount charged for borrowed funds 

org structure based on the management functions within the organisation