Page 371 - Cambridge IGCSE Business Studies

Index

cooperatives see social enterprises e-commerce 144, 186, 187, 187 short-term or long-term 246, 252
corporate plans 30 economic growth 300 see also capital employed
corporate social responsibility (CSR) economic influences on business success and fi nancial rewards 79–82

59–60, 318 failure 43 fi nancial statements 280
corporation tax 305–306 economic man, theory of 76 balance sheet 277
cost-benefi t analysis 318 economic problem 11 cash-fl ow forecasts 259–261
cost of sales 269 economies, developing and developed income statements 272
cost-plus pricing 173, 174 23–24 interpretation 283–291, 290
costs 13, 205, 215–218 economies of scale 36, 219–222 stakeholder interest 284, 291–292
credit sales 250, 264 education 24 fi scal policies 303–304
creditors see trade payable effi ciency, improving 144–145 fi xed assets see non-current (fixed) assets

CSR (corporate social responsibility) electronic communication 126, 128 fi xed costs 215

59–60, 318 electronic funds transfer at the point of sale flat organisational structures 93–94

cultural diff erences 238 (EFTPOS) 212 flow production 76–77, 209–210, 210
current assets 278 electronic point of sale (EPOS) 212 focus groups 156
current liabilities 278 emails 129 foreign markets 193–196
current ratio 288–289 employees forward vertical integration 37, 38
curriculum vitae (CV) 111, 112 communication about growth plans 39 four Cs 363
customer base 140 company policies and administration 78 four Ps 164
customer relationship marketing (CRM) 363 departure 116–118 franchises 50–51, 197
customers 141 fi nancial rewards 79–82 free trade 144, 238
complaints 230 interest in fi nancial statements 291 see also barriers to trade
identifying and satisfying needs 139–140, motivation 71–73, 72, 78, 84–85, 221 free trade agreements 328
143, 154 non-fi nancial rewards 83–84 fringe benefi ts 72, 81–82
loyalty 140, 164, 230 number of 34 functional departments 89
spending decisions 141–142 part-time 113–114
as stakeholders 64, 65, 292 as stakeholders 63, 65 geographic segmentation 148
see also consumers trade unions 103, 119 globalisation 327–329
customs duty see import tariff s employment 300 see also competition
energy sources 316 goods and services
enterprise 11, 28
de-industrialisation 24 entrepreneurs 11, 28–29 factors of production 11
debentures 253 environmental concerns 313–322 specialist 31 369
debt-factoring 252, 363 see also corporate social responsibility types of 14–15
debt fi nance 254 (CSR) see also product
see also fi nance equity fi nance 254, 254, 278 government(s)
debtors see trade receivable Ericsson 52 borrowing 307
decentralised organisations 95 ethical issues 322–325 economic objectives 299–300
decision-making 95 location decisions 236, 238 fi scal policies 303–304
and leadership styles 101, 102 see also corporate social responsibility grants and incentives 236, 238, 254, 322, 327

delayering 94–95 (CSR); globalisation influence of large businesses 36, 334
delegation 84, 92, 99 exchange rates 335–337 as information source 155
see also decentralised organisations excise duty 307 interest in fi nancial statements 292
demand 175–176 expenses, business 269 market intervention 144
demand curve 141, 175–176 export tariff s 330 spending 307
democratic leadership 100, 101 exports 299 as stakeholders 64, 65
demographic segmentation 149–150 extension strategies, product 169 support for business start-ups 30–31, 144

departmental managers 96 external growth (integration) 37–39, 38 tariffs and quotas 330
depreciation (of currency) 336, 336 external recruitment 107 see also public sector
deregulation 144 externalities 317–318 graphs see charts and diagrams
desk research see secondary research greenhouse gases 316
developing economies 23–24, 254 gross domestic profi t (GDP) 300
direct mail 185 Facebook see social networks gross profi t 268
direct selling 180, 181 factors of production 11 gross profi t margin 285–286
direct taxes 304–306 failure, business growth economy 302
directors 96 liability for debts 53 growth objectives 59
discounted pricing 173 reasons for 40–43
discrimination 119 survival objective 59 handling costs 205
diseconomies of scale 220–222 Fair Trade 323 health and safety 119–120, 131
dismissal, employee 117, 119 feedback, communication 123, 125, 132 Herzberg, Fredrick 77
disposable income 304 fi eld research see primary research hierarchy 90, 93–94
distribution channels 179–181, 181, 230 fi nance hire purchase 253
dividends 48 choosing most suitable source 255–256 home country 329
division of labour 14 debt or equity 254 horizontal integration 37, 38
domestic markets 195 external sources 251–254 host country 329
dominance, market 36, 40 internal sources 247–250 hourly wage rate 80, 120
durable consumer goods 14 purposes 245 hygiene factors 77–78