Academic journals publish research-based articles written by experts.

The Acid Test Ratio, also known as the Quick Ratio, measures a company's ability to meet short-term liabilities using its most liquid assets (excluding inventory).

Agents act as intermediaries between producers and buyers but do not take ownership of the goods.

Amortization refers to the process of writing off the cost of an intangible asset (e.g., patents, trademarks, goodwill) over its useful life. This expense is spread out evenly over the asset's estimated lifespan.

The Ansoff Matrix is a strategic tool used to analyze and plan business growth strategies based on market and product development.

Appraisals are formal evaluations of an employee's performance over a specific period.

A process where a neutral third party makes a binding decision to resolve a dispute.

Artificial Intelligence (AI) AI refers to computer systems that analyze data, predict outcomes, and perform tasks traditionally requiring human intelligence.

Artificial neural networks (ANNs) are computing systems inspired by the human brain.

A leadership style where the leader makes all decisions with little or no input from employees. Authority is centralized, and employees are expected to follow orders.

The Average Rate of Return (ARR) measures the profitability of an investment as a percentage of the initial or average investment cost. It helps businesses compare the potential returns of different investment projects.

A bank loan is a sum of money provided by a bank to a business, which is repaid with interest over an agreed period.

A legal process where an individual or business declares they are unable to repay outstanding debts. This can result in asset liquidation to pay creditors or a structured repayment plan under court supervision.

Barriers to communication are obstacles that prevent the effective exchange of information.

Batch production is a manufacturing method where a group of identical products is produced together in stages before moving on to the next batch.

Comparing your organization’s processes or performance against industry leaders or best practices, then applying the lessons learned.

Big data refers to large and complex datasets that traditional methods cannot process effectively.

Substances that naturally decompose over time without harming the environment.

The value of an asset as recorded in a company's financial statements, usually the original cost minus depreciation, amortization, or impairment costs.

The BCG Matrix (Boston Consulting Group Matrix) is a strategic tool used in business management to analyze a company’s product portfolio and help with investment decisions. It categorizes products or business units based on market growth rate and relative market share.

A brand is a name, term, sign, symbol, or design (or a combination of these) that identifies the goods or services of a seller and differentiates them from competitors.

Brand awareness measures how well consumers recognize and recall a brand.

Brand development involves creating and refining a brand's identity to resonate with its target audience.

Brand loyalty measures the extent to which customers repeatedly choose a brand over competitors.

Brand value refers to the financial and non-financial benefits a brand brings to a business.

The level of output at which a business's total revenue exactly matches its total costs, resulting in no profit or loss.

A financial plan that estimates income and expenses over a specific period, guiding decision-making and resource allocation.

Buffer stock is the minimum inventory level maintained to prevent stockouts during unexpected demand spikes or supply delays.

A reserve supply of materials or products kept as a precaution against unexpected shortages or supply chain disruptions.

Bureaucracy refers to the formal rules, procedures, and hierarchical structures that govern an organization.

Business angels are wealthy individuals who invest personal funds in exchange for equity or a share of future profits.

A business idea is the fundamental activity a business will undertake to meet customer needs and generate revenue.

A business plan is a formal document that outlines a business's objectives, strategies, market analysis, and financial projections.

The process of planning, monitoring, and optimizing the production capacity of a business to meet demand efficiently.

The process of determining the production capacity needed to meet current and future demand efficiently.

Capacity Utilization Rate measures how much of your production capacity is being used.

Capital Employed represents the total capital investment used to generate profits. It reflects the long-term funds deployed in the business.

Capital expenditures (CapEx) involve investments in long-term assets that provide benefits over multiple years. These assets typically support business growth, operational efficiency, and strategic goals.

Capital productivity measures output relative to capital investment.

The movement of money into and out of a business over a specific period. It includes both cash inflows (receipts) and cash outflows (payments).

A cash flow forecast is a financial projection that estimates the amount of money expected to flow in and out of a business over a specific period. It helps businesses predict their future cash position, ensuring they have enough liquidity to cover expenses and make informed financial decisions.

The money received by a business from various sources, such as sales revenue, loans, investments, and grants.

The money a business spends on expenses such as salaries, rent, raw materials, and loan repayments.

Centralization means that decision-making is concentrated at the top levels of the organization.

Chain of command is the formal line of authority through which instructions are passed within an organization.

An economic system aimed at eliminating waste and the continual use of resources through principles like recycling, reusing, and repairing.

A production model where waste materials are repurposed into new products, eliminating landfill waste.

The amount of cash available at the end of a period, calculated as the opening balance + net cash flow.

Cloud computing allows businesses to store, process, and access data and applications over the internet instead of installing them on a local machine.

Collective bargaining is a process where employees, often represented by trade unions, negotiate with employers to improve wages, benefits, and working conditions.

Commission is a payment based on sales performance, often used in sales roles.

Communication is the exchange of information between people or organizations.

The unique attributes or capabilities that allow a business to outperform its competitors. It enables a company to offer superior value to customers, whether through lower costs, differentiated products, superior quality, brand reputation, or innovation.

Competitive pricing involves setting prices based on what competitors charge, ensuring your product remains attractive in the market.

Conciliation is a voluntary process where a neutral third party facilitates discussions between employees and employers to help resolve disputes.

Contribution is the amount of money left after subtracting variable costs from sales revenue. It helps cover fixed costs and, once those are covered, contributes to profit.

Contribution costing is a financial analysis tool that helps businesses determine the profitability of individual products or activities by focusing on the contribution each makes to covering fixed costs and generating profit.

Contribution per unit tells you how much each unit sold contributes to covering fixed costs.

Contribution pricing focuses on setting prices based on the contribution margin — how much each sale contributes to covering fixed costs after variable costs are deducted.

Convenience sampling involves selecting participants who are easiest to access, such as nearby individuals or those readily available online.

Copyright protect original works of authorship, such as literature, music, art, and software.

A department, function, or segment within an organization that incurs costs but does not directly generate revenue. Examples include HR and IT departments.

The direct costs associated with producing or purchasing goods that a company sells during a period, including raw materials and labour.

Cost per unit refers to the total cost incurred to produce, store, and sell one unit of a product. It is calculated by dividing the total production cost (fixed + variable costs) by the number of units produced.

The total expense incurred when purchasing goods or services from an external supplier.

The total expense incurred when producing goods or services internally.

Cost-plus pricing is a straightforward method where a business calculates the total cost of producing a product and then adds a mark-up to ensure profit.

A cost refers to the expenditure a business incurs while producing goods or services. Typical costs include payments for raw materials, wages, rent, and fuel.

A sustainable approach where products are designed for complete reuse, recycling, or composting, ensuring zero waste.

A financial strategy used by businesses to manage customer credit, minimize bad debts, and ensure timely payments. It includes setting credit limits, monitoring receivables, and enforcing payment terms.

Refers to an entity's ability to repay its debts, based on its financial health and reliability. It's often assessed by credit ratings, which consider factors like income, debt levels, past borrowing history, and the stability of cash flows.

Creditor Days (also known as Payables Days) measures the average number of days a company takes to pay its suppliers after receiving goods or services.

Individuals or entities to whom a business owes money, typically suppliers or lenders.

Crisis management involves an immediate response to unforeseen, high-impact events. The goal is to minimize damage and ensure continuity.

Crowdfunding involves raising small amounts of money from a large number of individuals, typically via online platforms.

Short-term assets that can be converted into cash within a year, such as cash, debtors and stocks.

Short-term financial obligations due within one year, such as accounts payable, short-term loans, and taxes owed.

The Current Ratio is a liquidity ratio that measures a company's ability to pay short-term obligations using its current assets.

A customer-centric approach is a business strategy that prioritizes the needs, preferences, and experiences of customers at every stage of the customer journey. It focuses on delivering value, building long-term relationships, and ensuring customer satisfaction to drive business growth.

A structured marketing strategy designed to encourage repeat purchases by offering rewards, discounts, or exclusive perks.

Customization refers to the process of producing one-off, bespoke items tailored to meet specific customer requirements.

Cybersecurity refers to the practices and technologies used to protect networks, systems, and data from unauthorized access or attacks.

Data centers are facilities that house servers, storage, and networking equipment.

Data mining is the process of analyzing large datasets to uncover patterns, correlations, and trends.

A database is a structured collection of data that allows for easy access, management, and analysis.

A debenture is a long-term loan issued by businesses to raise capital, often with fixed interest payments over a specific term.

Debtor Days (also known as Receivables Days) measures the average number of days it takes for a company to collect payments from its customers after a sale.

Decentralization distributes decision-making authority to lower levels of the organization.

A decision tree is a visual tool that helps businesses analyze different decision options by considering potential outcomes and risks.

Defect rate measures the percentage of defective products in total production.

Delayering involves removing layers of management to create a flatter organizational structure.

Delegation is the process of assigning authority to subordinates while retaining ultimate responsibility for the task.

A leadership style where decision-making is collaborative, and employees actively participate in discussions.

The process of allocating the cost of a tangible asset over its useful life to account for wear and tear, obsolescence, or usage.

Differentiation is the process of making a product or service distinct from competitors in ways that are valuable to customers.

Digital Taylorism is the use of technology to track employee performance and optimize workflows, similar to the principles of scientific management.

Expenses that can be directly linked to the production of a specific product or service, such as raw materials and labour costs.

The discount rate is the interest rate used to discount future cash flows to their present value. It reflects the opportunity cost of capital.

Diseconomies of scale occur when a business's average cost per unit increases as its production scale grows.

Disruptive innovation involves creating revolutionary changes that establish new markets or disrupt existing ones.

Distribution channels are the pathways through which products travel from the producer to the consumer. They can be direct or involve intermediaries.

Diversification refers to a strategy where a company expands its product offerings, markets, or industries to reduce risk and increase growth opportunities.

Dynamic pricing involves adjusting prices in real-time based on demand, competition, or other factors.

Economies of scale occur when a business's average cost per unit decreases as its production scale increases.

Producing maximum output with minimum input.

These schemes offer employees shares in the company, aligning their interests with long-term business success.

The costs incurred by a business in generating revenue, including operating expenses, administrative costs, and interest.

External growth involves collaborating with or acquiring other businesses.

External recruitment involves hiring candidates from outside the organization through job postings, recruitment agencies, or networking.

External stakeholders are individuals or groups outside the organization who are affected by its activities or have an interest in its performance. They do not directly work for the business but can influence or be influenced by its actions.

Extrinsic motivation comes from external rewards, such as salary, promotions, or bonuses.

These occur when actual revenue exceeds budgeted revenue or when actual costs are lower than budgeted costs, leading to improved profitability.

The set of financial statements prepared at the end of an accounting period, usually including the profit and loss account and the balance sheet.

Financial rewards are monetary incentives provided to employees in exchange for their work. These rewards can be direct, like salaries and bonuses, or indirect, such as benefits and profit-sharing schemes.

Fixed costs remain constant, regardless of production levels.

Costs that remain constant regardless of the level of production or sales, such as rent, salaries of permanent staff, and insurance.

Flexibility in the context of job production highlights the ability of a business to adapt its production processes to accommodate varying customer demands.

Focus groups bring together a small group of people to discuss a specific topic, guided by a moderator. These sessions are designed to explore diverse perspectives and generate dynamic discussions.

Force Field Analysis is a decision-making tool used to evaluate the factors that influence change within an organization.

Franchising allows a business (the franchisor) to license its brand and business model to independent operators (franchisees).

Fringe payments (or benefits) are non-cash rewards that enhance an employee's compensation package.

A Gantt chart is a project management tool that uses horizontal bars to represent tasks over a timeline.

The Gearing Ratio measures the proportion of a company’s capital that is financed through debt.

The gig economy refers to a labor market characterized by short-term, flexible, and freelance work instead of permanent jobs.

An intangible asset representing the value of a business’s reputation, customer relationships, brand recognition, or other non-physical advantages.

Government publications offer official data on economic, demographic, and industry-specific trends.

The Gross Profit Ratio is a profitability ratio that measures the percentage of gross profit to net sales. It indicates how efficiently a company produces and sells its goods.

Growth refers to the expansion of a business in terms of sales, market share, profits, or operations over time.

High-volume standardized production refers to a manufacturing process that produces large quantities of identical or nearly identical products using highly automated systems and standardized procedures. This approach focuses on efficiency, cost reduction, and consistency, often utilizing assembly lines, robotics, and economies of scale.

The original purchase price of an asset, recorded in accounting records, without adjustments for inflation or market value changes.

Human Resource Planning (HRP) is the process of forecasting an organization's future workforce needs and developing strategies to meet those needs.

The strategic approach to managing people in an organization to help the business gain a competitive advantage. It is designed to maximize employee performance in service of an employer's strategic objectives.

Immersive technologies create realistic environments that engage our senses, making us feel as if we're part of the experience.

Incremental innovation involves making gradual improvements to existing products, processes, or services.

Expenses that are not directly tied to the production of a specific product but are necessary for the overall operation, such as utilities, office supplies, and administrative expenses.

Induction training is the process of introducing new employees to the organization, its culture, and their specific roles.

A financial state where an individual or business is unable to meet financial obligations when they become due.

Insourcing involves bringing previously outsourced tasks back into the company to regain control and improve quality.

Non-physical assets with value, such as patents, trademarks, copyrights, and goodwill.

Internal growth refers to expanding a business through its own resources and capabilities.

Internal recruitment involves filling job vacancies with existing employees through promotions, transfers, or redeployment.

Internal stakeholders are individuals or groups directly involved in the organization and its operations. They have a direct interest in the business’s performance and decision-making.

A network of interconnected devices that collect, share, and analyze data to automate processes and improve decision-making.

Interviews involve direct conversations between an interviewer and a respondent, allowing for detailed exploration of opinions, experiences, and motivations.

Intrinsic motivation comes from within, employees find satisfaction in the task itself (e.g., solving complex problems, learning new skills).

Intuitive thinking relies on instincts, experience, and a "gut feeling" to make decisions.

The purchase of non-current assets (e.g., machinery, property) or financial assets (e.g., stocks, bonds) with the expectation of generating future returns.

Investment appraisal is the process of evaluating the potential profitability and risks of an investment to determine its financial viability.

Job production is a method of production where a single product is completed before starting the next, often tailored to a customer's specific requirements.

A joint venture involves two or more companies creating a new, separate entity to pursue a specific project or goal.

An inventory management strategy where materials and products are ordered and received only when needed for production, reducing storage costs and waste.

JIC is the traditional approach to inventory management, where businesses maintain a buffer stock to handle unexpected demand or supply chain disruptions.

JIT is an inventory management system where materials and products are produced or sourced only when needed.

A system where products are manufactured or stocked only when needed, preventing excess inventory and reducing storage costs.

A Japanese management philosophy that focuses on small, continuous improvements in processes, products, and workplace culture. It encourages employee involvement, problem-solving, and incremental changes to enhance efficiency, quality, and overall business performance.

A Japanese principle meaning continuous, gradual improvement, where small, consistent changes are made to processes to enhance productivity and eliminate inefficiencies.

Labour productivity measures output per worker over a specific period.

Labour turnover is the percentage of employees who leave an organization over a specific period, usually a year.

A leadership style where employees are given maximum autonomy, and the leader provides minimal guidance.

Lead time is the delay between placing an order and receiving goods.

Leadership is the ability to inspire, influence, and guide others toward a shared vision or goal.

A business approach aimed at reducing waste and improving efficiency, ensuring that resources are used effectively without unnecessary costs or delays.

A manufacturing philosophy focused on minimizing waste (e.g., excess inventory, overproduction, and inefficiencies) while maximizing value for customers. It emphasizes continuous improvement, efficient workflows, and high-quality output using methods like Just-in-Time (JIT), Kaizen, and automation.

Leasing allows businesses to use assets like equipment or vehicles without purchasing them outright.

Levels of hierarchy refer to the number of layers of management within an organization.

Liquidation is the process of closing a business and distributing its assets to creditors and shareholders.

Liquidity refers to a business's ability to convert assets into cash quickly to meet short-term obligations.

A liquidity crisis occurs when an entity or market does not have enough liquid assets (cash or assets easily converted into cash) to meet its short-term financial obligations.

Liquidity Ratios measure a company's ability to meet short-term financial obligations.

Loan capital refers to funds borrowed from banks or financial institutions over a medium to long term, repaid over time with interest.

Lockouts involve temporarily closing operations to pressure employees, while closures permanently shut down the business.

A loss leader is a product sold below cost to attract customers, with the expectation that they will purchase other profitable items.

Maintenance costs are the expenses involved in keeping a facility, equipment, or system in good working order

Management is the process of planning, organizing, directing, and controlling resources to achieve specific goals.

The difference between the actual sales volume and the break-even quantity, indicating how much sales can drop before a business incurs a loss.

Market analyses provide insights into the size, growth, and trends of a market.

Market growth refers to the percentage increase in the total size of a market over a specific period.

Market leadership refers to a company that holds the largest market share in its industry or is recognized as the most influential player.

A market-oriented business prioritizes customer needs and market trends in its decision-making.

Market research is the process of gathering, analysing, and interpreting information about a market, including its customers, competitors, and trends.

Market share is the percentage of total sales in a market that is attributed to a particular business.

A marketing audit is a comprehensive analysis of the internal and external factors affecting a business.

Marketing mix customization involves tailoring the 7Ps (Product, Price, Promotion, Place, People, Process, and Physical Evidence) to meet the specific needs of different markets or products.

Marketing strategies outline how a business will achieve its objectives.

Marketing planning is the systematic process of setting objectives, analyzing market conditions, identifying target audiences, and designing strategies to achieve business goals.

Mass customization is a business strategy that combines the efficiency of mass production with the flexibility of personalized products. It allows companies to produce goods or services tailored to individual customer preferences while maintaining cost-effective large-scale production.

A mass market targets a large, broad audience with standardized products or services designed to appeal to as many people as possible.

Mass (or flow) production is a manufacturing method where large quantities of standardized products are produced continuously using automated processes and assembly lines.

Media articles provide timely updates on industry news, trends, and competitor activities.

Microfinance provides small loans and financial services to entrepreneurs in developing regions.

A mission statement defines the current purpose of a business.

A mortgage is a long-term loan designed specifically for purchasing property, where the property itself serves as collateral.

A multinational corporation (MNC) or multinational company is a company that operates in multiple countries while having its headquarters in one country.

The total assets of a business minus its total liabilities, representing the owners’ equity.

The difference between total cash inflows and total cash outflows in a given period.
Formula: Net Cash Flow = Cash Inflows – Cash Outflows.

NPV is a financial metric used to evaluate the profitability of an investment or project. It calculates the difference between the present value of cash inflows and the present value of cash outflows over a given period.

A niche market is a small, specialized segment of a larger market that focuses on specific customer needs, preferences, or interests.

Long-term assets that a business intends to use for more than a year, such as property, equipment, and intangible assets.

Long-term financial obligations that are due beyond one year, such as mortgages, bonds, and long-term loans.

Non-governmental organizations (NGOs) are non-profit entities that operate independently of governments, focusing on social, environmental, or humanitarian causes.

Observations involve watching and recording behaviors or actions in natural settings without direct interaction. This method provides objective insights into how people act, rather than what they say they do.

Off-the-job training involves formal education or training conducted outside the workplace.

Offshoring involves relocating production or services to another country to take advantage of lower costs or favorable business conditions.

A seamless and integrated approach to sales, marketing, and customer service across multiple channels (e.g., physical stores, websites, mobile apps, social media, and call centers). The goal is to provide a consistent and personalized customer experience, allowing customers to switch between channels effortlessly.

On-the-job training involves employees learning skills while performing their tasks in the workplace.

Online content includes data from websites, blogs, social media platforms, and other digital sources.

The amount of cash a business has at the beginning of a financial period, which is the closing balance from the previous period.

Operating leverage measures how fixed costs impact profitability as output levels change.

Interruptions to the normal functioning of a business, often caused by unforeseen events.

Operations management is the process of overseeing the transformation of inputs (resources) into outputs (goods or services) in a way that maximizes efficiency and effectiveness.

Opportunity cost is the value of the next best alternative that is forgone when a decision is made to pursue one option over another. It reflects the benefits that could have been obtained if a different decision or investment had been chosen.

Organizational culture refers to the shared values, beliefs, and practices that shape how members of an organization interact and work.

The framework that defines how tasks are divided, coordinated, and supervised within a company.

Outsourcing involves hiring external firms to handle specific tasks or processes, allowing a business to focus on its core activities.

An overdraft allows businesses to withdraw more money than is available in their bank account, up to an agreed limit.

An overdraft is a financial arrangement where a bank allows an account holder to withdraw more money than they have in their account, up to a certain limit. Essentially, it allows the account holder to borrow funds from the bank temporarily, with the expectation that the account will be replenished later.

Patents protect inventions, giving businesses exclusive rights to their innovations for a specific period.

A leadership style where the leader makes decisions in the best interest of employees, much like a parent-child relationship.

The payback period is the amount of time it takes for an investment to generate enough cash flows to recover the initial investment cost.

Penetration pricing involves setting a low initial price to attract customers and gain market share quickly.

PRP rewards employees for meeting or exceeding specific targets. It can take the form of bonuses or salary increases.

Personal funds are the owner's personal savings used to finance the business.

Personalized products are goods or services that are customized to meet the specific preferences, needs, or characteristics of an individual customer.

Physical evidence refers to the tangible elements that accompany a service, helping customers evaluate its quality and reliability.

Position maps, also known as perceptual maps, are visual tools that illustrate how consumers perceive products in relation to competitors.

Positioning involves creating a unique image or identity for a product in the minds of consumers.

Predatory pricing involves setting prices extremely low to drive competitors out of the market.

Premium pricing involves setting high prices to convey a sense of luxury, quality, or exclusivity.

Price elasticity of demand measures how sensitive consumer demand is to changes in price. This helps businesses predict the impact of pricing decisions on sales and revenue.

Primary market research involves collecting new data directly from sources to address specific questions or objectives.

The primary sector involves acquiring natural resources.

The process refers to the steps a business takes to provide its product or service to customers.

The strategic planning and structuring of workflows, resources, and activities to efficiently produce goods or services.

The strategic planning and structuring of workflows, resources, and activities to efficiently produce goods or services. It involves determining the most effective way to organize tasks, materials, equipment, and human resources to maximize productivity, minimize costs, and ensure quality.

A visual representation of a workflow that outlines the steps, inputs, and outputs of a process. It helps businesses identify inefficiencies, bottlenecks, and areas for improvement by providing a clear overview of how tasks are performed.

The Product Life Cycle (PLC) is a framework that outlines the stages a product goes through in the market such as introduction, growth, maturity, and decline.

A product-oriented business emphasizes developing high-quality or innovative products, assuming that demand will follow.

A product portfolio is the collection of products a business offers. Managing this portfolio strategically ensures long-term success.

Productivity rate measures overall efficiency by combining labor, capital, and resource utilization.

The financial gain obtained when revenue exceeds expenses, can be classified as gross profit, operating profit, or net profit.

A Profit and Loss Appropriation Account is an extension of the Profit and Loss Account that shows how a company or partnership allocates its net profit at the end of an accounting period. It is mainly used by partnership firms and companies to distribute profits among partners, shareholders, or reserves.

A division or unit of a business responsible for generating revenue and profit, such as a sales department or product line.

The Profit Margin measures the percentage of net profit relative to net sales. It reflects a company's ability to generate profit after accounting for all expenses, including taxes and interest.

Profit maximization is the process of achieving the highest possible difference between total revenue and total costs.

Profit-related pay involves sharing a portion of the company's profits with employees.

A measure of how well a business turns revenue into profit.

A structure where teams are temporarily formed to work on specific projects, disbanding once the project is completed.

Promotion refers to the methods used by businesses to communicate with customers about their products or services.

Qualitative research is a method of inquiry that seeks to understand human behavior, opinions, and motivations through non-numerical data.

Quality assurance is a proactive approach that embeds quality processes within production to prevent defects from occurring.

A quality circle is a small group of employees who voluntarily meet to identify, analyze, and solve work-related problems.

A process used to ensure that products or services meet specified standards by identifying and correcting defects.

Quality control involves inspecting products at various stages of production to identify and fix defects.

Quantitative research focuses on collecting and analyzing numerical data to identify patterns, trends, and relationships.

The quaternary sector is a subset of the tertiary sector, focusing on knowledge-based activities such as:

Quota sampling involves selecting participants based on specific traits or characteristics, ensuring the sample reflects the proportions of these traits in the target population.

Random sampling involves selecting participants entirely by chance, ensuring every individual in the population has an equal opportunity to be chosen.

Ratio Analysis is a financial analysis tool that evaluates a company's financial performance using various ratios. It helps in assessing profitability, liquidity, efficiency, and solvency.

Recruitment is the process of identifying, attracting, and selecting the best candidates to fill job vacancies.

The reorder level is the inventory level at which a new order must be placed to replenish stock before it runs out.

Reorder quantity is the amount of stock ordered each time to replenish inventory.

Research and development (R&D) is the generation and application of scientific knowledge to create a new product or develop a new production process which can increase the business' productive efficiency.

Reshoring involves relocating production back to the home country to address supply chain risks or enhance brand reputation.

The estimated value of an asset at the end of its useful life, often used in depreciation calculations.

Retailers sell products directly to consumers through physical stores or online platforms.

Retained profit is the portion of a business's earnings kept within the company instead of being distributed to shareholders or owners.

The portion of net profit that is kept in the business for reinvestment rather than distributed as dividends.

ROCE is a key profitability ratio that measures how efficiently a company generates profit from its capital employed.

$$\text{ROCE} = \frac{\text{Profit before interest and tax}}{\text{Capital employed}} \times 100$$

A higher ROCE indicates efficient use of capital in generating profits.

The total income generated by a business from its sales of goods or services before any costs are deducted. It is calculated as:

$$\text{Total Revenue} = \text{Price per Unit} \times \text{Quantity Sold}$$

Revenue expenditures (RevEx) are the day-to-day expenses incurred in running a business. These costs are recurring and are necessary to maintain operational continuity and generate income.

The different sources through which a business earns income, such as product sales, subscriptions, licensing, and advertising.

Risk refers to situations where the outcomes of a decision or event can be predicted with some degree of probability. It is quantifiable and can be managed with tools like diversification or insurance.

Uncertainty refers to situations where the outcomes are unknown, and it is impossible to assign probabilities. Uncertainty makes it difficult to predict future events accurately, and it often arises from unknown or uncontrollable factors.

The ongoing expenses required to operate a business, including salaries, rent, utilities, and maintenance.

A salary is a fixed annual payment, typically divided into monthly installments. It provides stability and predictability for employees.

An exisiting asset, for instance premises, is sold and then the same property is taken on lease. In this the ownership of the property is lost but the possession still remains with its previous owner.

Sale of assets involves selling non-essential or underutilized assets to generate capital.

Sales forecasting is the process of estimating future sales based on historical data, market trends, and other relevant factors.

Sampling is the process of selecting a subset of individuals from a larger population to gather data and insights.

Scalability refers to a business’s ability to grow and expand its operations without a proportional increase in costs.

Scientific thinking in management involves using data, analysis, and a systematic approach to make decisions.

Secondary market research involves analyzing existing data from external sources such as industry reports, government publications, and competitor analyses to gain insights without conducting new research.

The secondary sector focuses on transforming raw materials into finished products.

Sectoral change refers to the shifting importance of these sectors within an economy over time.

Segmentation is the process of dividing a market into smaller, distinct groups of consumers who share similar characteristics or needs.

The initial expenses incurred when starting a business, such as purchasing equipment, legal fees, and branding costs.

A model that divides the workforce into three distinct groups: core workers, contract workers, and peripheral workers.

Share capital is a form of business finance where companies raise funds by selling shares, which represent ownership in the company. Each share is a certificate of partial ownership.

The amount of money raised by a company through the issuance of shares to shareholders.

Shareholder value refers to the financial worth that a business delivers to its shareholders, typically measured through dividends, share price appreciation, and overall profitability.

A flexible leadership style where the leader adjusts their approach based on the situation and team’s needs.

A data-driven methodology focused on reducing defects and variability in processes to achieve near-perfect quality. It follows a structured approach called DMAIC (Define, Measure, Analyse, Improve, Control) to improve efficiency and eliminate errors.

Span of control refers to the number of subordinates directly reporting to a manager.

Specialization allows businesses to focus on what they do best, improving efficiency and quality.

Stakeholder conflict arises when the objectives or expectations of different stakeholder groups are incompatible.

Stakeholders are individuals or groups who are affected by or have an interest in a business's activities.

STEEPLE stands for Social, Technological, Economic, Environmental, Political, Legal, and Ethical factors.

The Stock Turnover Ratio measures how often a company sells and replaces its inventory within a given period.

A depreciation method where an asset’s cost is reduced evenly over its useful life.

A strategic alliance is a partnership between two or more companies to achieve shared objectives without forming a new entity.

Strategic objectives are long-term goals that align with a business's vision and mission.

A streamlined process is a workflow that has been optimized to remove inefficiencies, reduce waste, and improve speed and productivity. It involves simplifying steps, automating tasks, and eliminating unnecessary actions to achieve a more efficient and effective operation.

Strike action involves employees withdrawing their labor entirely, halting production or services to pressure employers into meeting their demands.

Supply chain management involves coordinating all activities required to produce and deliver a product, from raw materials to the final customer.

Surveys are one of the most popular tools for collecting data. They involve asking a series of questions to a sample of people, aiming to gather insights about a larger population.

The practice of producing goods and services in a way that minimizes environmental impact, ensures social responsibility, and maintains economic viability for future generations.

Obtaining raw materials in a way that preserves ecosystems and supports fair labor practices.

SWOT analysis is a strategic planning tool used to identify internal strengths and weaknesses and external opportunities and threats affecting an organization.

Tactical objectives are short-term, actionable steps designed to achieve strategic objectives.

A takeover occurs when one company acquires another without the target company's consent.

Targeting is the process of choosing which market segments to focus marketing efforts on.

The tertiary sector encompasses businesses that offer services rather than physical goods.

A financial statement that presents a company’s financial position at a specific point in time, listing assets, liabilities, and equity.

The difference between revenue from sales and the cost of goods sold (COGS), before deducting other operating expenses.

A financial statement showing a company's revenues, expenses, and profits over a specific period.

A Trading Account is a financial statement that forms part of the final accounts of a business. It is prepared to determine the gross profit or gross loss of a company during an accounting period.

The Time Value of Money is the concept that a sum of money has greater value now than the same sum in the future due to its potential earning capacity.

The sum of all expenses incurred in producing a good or service.

A holistic approach to long-term success through customer satisfaction. It involves continuous improvement, employee involvement, and process optimization across all departments.

TQM is an organization-wide philosophy of continuous improvement, where every employee, from managers to front-line workers, focuses on improving processes and maximizing customer satisfaction.

A business's total revenue is the sum of all its revenue streams.

Trade credit allows businesses to delay payment for goods or services, typically for 30 to 90 days.

Trademarks protect brand names, logos, and symbols, ensuring brand identity.

A Unique Selling Point (USP) is a distinctive feature or benefit that sets a product or brand apart from its competitors, creating a compelling reason for customers to choose it.

A depreciation method where depreciation expense is based on an asset’s usage, output, or activity level

Variable costs change in proportion to the level of output.

Expenses that change in proportion to the level of production or sales, such as raw materials and direct labour costs.

The difference between budgeted (planned) figures and actual financial performance, which can be either favourable or adverse.

Venture capital is a form of funding provided to small and medium-sized businesses that are often considered high-risk but have significant growth potential.

A vision statement defines the long-term aspirations of a business.

Wages are payments based on hours worked or units produced. They are often used for hourly or piece-rate workers.

Any unused materials, time, or resources that do not add value to the final product or service.

Wholesalers buy in bulk from manufacturers and sell in smaller quantities to retailers or businesses.

The practice of manipulating financial statements to make a company's financial position appear stronger than it actually is.

Work-to-rule is a form of industrial action where employees strictly adhere to their job descriptions, refusing to perform any additional tasks or work overtime.

Working capital is the difference between a business’s current assets and current liabilities. It represents the resources available to fund day-to-day operations.

Workplace conflict refers to disagreements between employees and employers over issues like wages, working conditions, job security, and more.