Absenteeism

refers to employee absences, on an average day, without sick leave or leave approved in advance.

Acceptable Quality

means that the product is fit for the purpose for which it is being sold, acceptable in appearance and finish, free from defects, safe and durable.

Accounting Equation

which forms the basis of the accounting process, shows the relationship between assets, liabilities and owner's equity.

Acquisition

is the process of attracting and recruiting the right staff for roles in a business.

Advertising

is a paid, non personal message communicated through a mass medium.

Advertising media

refers to the many forms of communication used to reach an audience.

Analysis

involves working the financial information into significant acceptable forms that make it more meaningful, and highlighting relationships between different aspects of a business.

Appreciation

is an upward movement of the Australian dollar (or any other currency) against another currency.

Arbitration

is the process where a third party hears both sides of a dispute and makes a legally binding decision to resolve the dispute.

Assets

are the property and other items and effects of a business, such as business premises, machinery, vehicles and cash (tangible assets) and patents, trademarks and goodwill (intangible assets). Current assets can be turned into cash within 12 months whereas non current assets are not expected to be turned into cash within 12 months.

Attitude

a person's overall feeling about an object or activity.

Audit

is an independent check of the accuracy of financial records and accounting procedures.

Australian Securities Exchange

is the primary stock exchange group in Australia.

Award simplification

is the process of reducing the number of matters in each award and eliminating inefficient work practices.

Awards

are legally enforceable, formal agreements made collectively between employers and employees and their representatives at the industry level. They are determined by an industrial court or tribunal and set out minimum wages and conditions of employees.

Bait and Switch

involves advertising a few products at reduced and enticing prices to attract customers.

Balance sheet

represents a business's assets and liabilities at a particular point in time, expressed in money terms, and represents the net worth of the business.

Bank overdraft

the bank allows a business or individual to overdraw their account up to an agreed limit and for a specified time, to help overcome a temporary cash shortfall.

Behavioral segmentation

is the process of dividing the total market according to the customer's relationship to the product.

Benchmarking

is a process in which indicators are used to compare business performance between internal sections of a business or between businesses/

Best practice

refers to business practices that are regarded as the best or of the highest standard in the industry.

Better off Overall test

(BOOT), requires that each of the employees to be covered by the agreement is better off overall than under the relevant modern award.

Bill of exchange

is a document ordering the payment of a certain amount of money at some fixed future date.

Bottleneck

is an aspect of the transformation process that slows down the overall processing speed or creates an impediment leading to a backlog of incompletely processed products.

Brand

is a name, term, symbol, design or any combination of these that identifies a specific product and distinguishes it from its competition.

Brand loyalty

occurs when a favorable attitude towards a single brand results in repeat sales over time.

Brand name

is that part of the brand that can be spoken

Brand symbol/logo

is a graphic representation that identifies a business or product.

Budgets

provide information in quantitative terms about requirements to achieve a particular purpose.

Bundle pricing

is where customer's gain a 'package' of goods and services in addition to the tangible good they purchased.

Business activity statement

records a business's claim for input tax credits and accounts for GST payable.

Business objectives

break the business operations into achievable and manageable outcomes that can be measured and evaluated.

Capital expenditure

is what is spent on a business's non current or fixed assets.

Capital-labour substitution

means that the machinery and technology displace people by doing the work they do.

Carbon footprint

refers to the amount of carbon produced and entering the environment from operations processes.

Carbon pricing

is the term used for putting a price on carbon.

Cash flow

is the movement of cash in and out of a business over a period of time.

Cash flow statement

is a financial statement that indicates the movement of cash receipts and cash payments resulting from transactions over a period of time.

Casual employees

are in employment that is short term, irregular and uncertain; they are not entitled to paid holiday or sick leave.

Centralised Industrial Relations System

is a collectivist approach in which disputes are referred to industrial tribunals, such as FWA, for conciliation and arbitration.

Change agent

is somebody who initiates change or facilitates the change process.

Channel

is any method used for carrying a message.

Channels of distribution

are the routes taken to get the product from the factory to the customer.

Clean payment

(remittance) occurs when the payment is sent to, but not received by, the exporter before the goods are transported.

Code of conduct

is a statement of acceptable and unacceptable behaviours in a business.

Code of ethics

is a statement of a firm's values and principles.

Code of practice

is a statement of the principles used by a business in its operations. It generally refers to practices that are seen as ethical or socially responsible.

Collective agreements

are made between a group of employees and an employer or group of employers.

Commercial bills

are a type of bill of exchange issued by institutions other than banks.

Common law

is develop by courts and tribunals.

Competition-based pricing

relates to how a business will differentiate its products.

Compliance costs

are the expenses associated with meeting the requirements of legal regulations e.g. abiding by all laws.

Computer-aided manufacturing

is software that controls manufacturing processes.

Conciliation

is a process where the third party is involved in helping two other parties reach an agreement.

Consumer exploitation

occurs when the rights of consumers are ignored.

Consumer guarantees

are a comprehensive set of rights and remedies for defective goods and services.

Consumer markets

consist of individuals - that is, members of a household who plan to use or consume the products they buy.

Contractor

is an external provider of services to a business. It may be an individual or a business.

Control

occurs when KPIs are assessed against predetermined targets and corrective action is taken if required.

Corporate culture

refers to the values, ideas, expectations and beliefs shared by members of the business.

Corporate Social Responsibility

refers to open and accountable business actions based on respect for people, community/society and the broader environment. It involves businesses doing more than just complying with the laws and regulations.

Cost

as a performance objective refers to the minimization of expenses so that operations processes are conducted as cheaply as possible.

Cost based pricing

is a pricing method derived from the cost of producing or purchasing a product and then adding a mark up.

Cost based competition

is derived from determining breakeven point (the level at which the firm matches total costs and total revenue) and then applying strategies to create cost advantages over competitors.

Cost Centres

are particular areas, departments or sections of a business to which costs can be directly attributed.

Cost leadership

involves aiming to have the lowest costs or to be the most price competitive in the market.

Credit risk

represents the risk of another party failing to complete the transaction as agreed.

Critical Path Analysis

is a scheduling method or technique that shows what tasks need to be done, how long they take and what order is necessary to complete those tasks.

Currency Swap

is an agreement to exchange currency in the spot market with an agreement to reverse the transaction in the future.

Current Assets

are assets that a business can expect to convert into cash within 12 months. They usually include cash and accounts receivable.

Current Liabilities

are liabilities that a business must repay within the short term. They usually include overdraft and accounts payable.

Customer choice

refers to the decisions and actions of customers when they search for, evaluate, select and purchase goods and services.

Customer orientation

refers to the process of collecting information from customers and basing marketing decisions and practices on customer's wants and interests.

Customer relationship management

refers to the systems that businesses use to maintain customer contact.

Customer satisfaction

measures how goods and services supplied by a business meet or exceed customer expectation.

Customer service

means responding to the needs and problems of the customer. Refers to how well a business meets and exceeds the expectations of customers in all aspects of its operations.

Customisation

refers to creation of individualized products to meet the specific needs of the customers.

Customised Goods

are those that are varied according to the needs of customers.

Customised approach

is a global marketing strategy that assumes the way the product is used and the needs it satisfies are different between countries.

Customised pricing

occurs whenever consumers in different countries are charged different prices for the same product.

Debentures

are issued by a company for a fixed rate of interest and for a fixed period period of time.

Debt finance

relates to the short term and long term borrowing from external sources by a business.

Debt repayments

refer to either money owed to the business or by the business.

Demand

is the quantity of a product consumers are willing to purchase at a particular price.

Demographic segmentation

is the process of dividing the total market according to particular features of a population, including the size of the population, age, sex, income, cultural background and family size.

Dependability

as a performance objective, refers to how consistent and reliable a business's products are.

Derivatives

are simple financial instruments that may be used to lessen the exporting risks associated with currency fluctuations.

Development

is the process of developing and improving the skills, abilities and knowledge of staff, through induction, ongoing training and further professional development.

Direct costs

are those that can be allocated to a particular product. Direct costs are also called variable costs.

Discretionary income

refers to disposable income that is available for spending and saving after an individual has purchased the basic necessities of food, clothing and shelter.

Discrimination

occurs when a policy or practice disadvantages a person or a group of people because of a personal characteristic that is irrelevant to the performance of the work.

Dishonest advertising

is when an advertisement uses words that are deceptive or claims that a product has some specific quality when it does now.

Distribution

refers to the ways of getting the good or service to the customer.

Dividend

is a distribution of a company's profits (either yearly or half yearly) to shareholders and is calculated as a number of cents per share.

E-commerce

involves the buying and selling or goods and services via the internet.

E-marketing

(electronic marketing) is the practice of using the internet to perform marketing activities.

Economies of Scale

refers to the cost advantages that can be created as a result of an increase in scale of business operations. Typically the cost savings come from being able to purchase lower cost per unit input and from efficiencies created through improved use of technology and machinery.

Efficiency

is the ability of a business to use its resources effectively in ensuring financial stability and profitability.

Employee

is a worker under an employer's control.

Employee poaching

is the act of enticing employees to work for another business.

Employee selection

involves gathering information about each applicant and using that information to choose the most appropriate applicant.

Employer

exercises control over employees, has responsibility for payment of wages, holds the power to dismiss employees.

Employer associations

are organisations that represent and assist employer groups. They are usually respondents to the awards covering the employees of their members, and covering employers in the same or related industry.

Employment contract

is a legally binding, formal agreement between employer and employee.

Enterprise agreements

are collective agreements made at a workplace level between an employer and a group of employees about terms and conditions of employment.

Environmental sustainability

means that business operations should be shaped around practices that consume resources without compromising access to those resources for future generations.

Equal Employment Opportunity

EEO refers to equitable policies and practices in recruitment, selection, training and promotion.

Equity

(employees): in the workplace is the provision of equal opportunities for all employees to gain access to jobs, training and career paths in the workplace.

Equity

(finance): refers to the finance (cash) raised by a company by issuing shares.

Equity finance

relates to the internal sources of finance in the business.

Ethical business practices

are those practices that are socially responsible, morally right, honourable and fair.

Ethical consumerism

involves buying products that are not harmful to the environment, animals and society.

Explicit service

is also called the tangible aspect of the service being provided, such as the application of time, expertise, skill and effort.

Extended Marketing Mix

refers to the combination of people, processes and physical evidence with the four main elements of the marketing mix.

External Finance

is the funds provided by sources outside the business, including banks, other financial institutions, government, suppliers or financial intermediaries.

External Recruitment

involves filling job vacancies with people from outside the business.

Extrinsic

rewards are those given or provided outside the job itself.

Facilities

refers to the plant and machinery used in the operations process.

Factoring

is the selling of accounts receivable for a discounted price to a finance or factoring company.

Fair Trade Movement

is an alternative method of international trade that promotes environmentalism, fair wages, alleviation of global poverty and a fair price for growers.

Fiduciary

is a person in a position of financial trust with respect to other's money.

FIFO

is a method of pricing inventory that assumes that the first goods purchased are also the first goods sold and therefore the cost of each unit sold is the first cost recorded.

Financial Budgets

relate to financial data of a business and include the budgeted income statement, balance sheet and cash flows

Financial Controls

are the policies and procedures that ensure that the plans of a business will be achieved in the most efficient way.

Financial management

is the planning and monitoring of a business's financial resources to enable the business to achieve its financial goals.

Financial resources

are those resources in a business that have a monetary or money value.

Financial risk

is the risk to a business of being unable to cover its financial obligations.

Fixed costs

are those costs that do not change regardless of the level of business activity.

Fixed position layout

is an operational arrangement in which employees and equipment come to the product.

Flexibility

refers to how quickly operations processes can adjust to changes in the market.

Foreign Exchange Market

determines the price of one currency relative to another.

Foreign exchange rate

is the ratio of one currency to another; it tells how much a unit of one currency is worth in terms of another.

Forward exchange contract

is a contract to exchange one currency for another currency at an agreed exchange rate on a future date, usually after a period of 30, 90 or 180 days.

Frequency

of an advertisement measures the average number of times someone is exposed to the message.

Fringe Benefits Tax

is a tax employers must pay on certain benefits they provide to their employees or their employee's associates, such as a family member. It is based on the taxable value of the various fringe benefits provided.

Gain-sharing plan

involves the benefits of improvements and success, such as productivity improvements, cost savings and sales and profit increases, being reflected in rewards for teams, such as shares, cash bonuses or annual bonuses.

Gantt chart

is a type of bar chart that shows both the scheduled and completed work over a period of time. It is often used in planning and tracking a project.

Gearing

is the proportion of debt (external finance) and the proportion of equity finance (internal finance) that is used to finance the activities of a business. These ratios determine the firm's solvency.

Generic Brands

are products with no brand name at all.

Geocentric

staffing approach uses the staff with the most appropriate skillset for a particular role and location, and builds a pool of managers with global experience.

Geographic segmentation

is the process of dividing the total market according to geographic locations.

Global branding

is the worldwide use of a name, term, symbol or logo to identify the seller's products.

Global economic outlook

refers specifically to the projected changes to the level of economic growth throughout the world.

Global pricing

is how businesses coordinate their pricing policy across different countries.

Global sourcing

is a broad term that refers to businesses purchasing supplies or services without being constrained by location. In the supply chain management activity, global sourcing means buying or sourcing from wherever the supplies that best meet the sourcing requirements.

Global web

refers to the network of suppliers a business has chosen on the basis of lowest overall cost, lowest risk and maximum certainty in quality and timing of supplies.

Globalisation

refers to the removal of barriers of trade between nations. globalization is characterized by an increasing integration between national economies and a high degree of transfer of capital, labour, intellectual capital and ideas, financial resources and technology.

Greenwashing

is the practice of making a misleading or deceptive claim about the environmental benefits of a product, business practice or technology in order to present a positive public image.

Grievance procedures

are formal procedures, generally written into an award or agreement, that state agreed processes to resolve disputes in the workplace.

Growth

is the ability of a business to increase in its size in the long term.

Hedging

is the process of minimizing the risk of currency fluctuations

Human resource management

refers to the management of the total relationship between an employer and employee.

Implementation

is the process of putting the marketing strategies into operation.

Implicit service

is based on a feeling and is therefore intangible. The implicit aspects of a service are the psychological wellbeing - the feeling of being looked after - that comes with the provision of the service.

Implied conditions

are the unspoken and unwritten terms of a contract.

Improvement

refers to systematic reduction of inefficiencies and wastage, poor work processes and the elimination of any bottlenecks.

In good faith

means the parties meet regularly with a willingness to reach an agreement.

Income statement

shows the operating results for a period. It shows the revenue earned and expenses incurred over the accounting period with the resultant profit or loss.

Independent contractors

often known as consultants or freelancers, undertake work for others; however they do not have the same legal status as an employee.

Indicators

are performance measures that are used to evaluate organizational or individual effectiveness.

Indirect costs

are those costs that are shared by more than one product.

Individual contracts

exist when an employer and an individual employee negotiate a contract covering pay and conditions.

Industrial dispute

is a disagreement over an issue or group o issues between an employer and its employees, which results in employers ceasing work.

Industrial Market

includes industries and businesses that purchase product to use in the production of other products or in their daily operations.

Inertia

is a term that describes a psychological resistance to change.

Informal Benchmarking

includes any strategies such as networking through informal discussions with colleagues in other businesses, undertaking visits to other businesses, researching best practice online and attending conferences.

Information

is the knowledge gained from research, investigation and instruction, which results in an increase in understanding.

Innovation

occurs when the business creates new products, and in doing so leads the market.

Inputs

are the resources used in the transformation (production) process.

Insourcing

refers to delegating a job to someone within the business, as opposed to someone outside the business.

Interdependence

refers to the mutual dependence that the key functions have on one another. The key business functions work best when they overlap and employees work towards common goals. Each function are depends on the support of the others if it is to perform at capacity.

Interest rates

are the cost of borrowing money

Intermediate goods

are goods manufactured and used in further manufacturing or processing.

Intermediate market

consists of wholesalers and retailers who purchase finished products and resell them to make a product.

Internal data

refers to information that has already been collected from inside the business.

Internal finance

is the funds provided by the owners of the business or from the outcomes of business activities.

Internal recruitment

involves filling job vacancies with people from within the business.

Interpretation

is making judgements and decisions using the data gathered from analysis.

Intrinsic

rewards are those that the individual derives from the task or job itself, such as a sense of achievement.

Inventory control

is a system that maintains quantities and varieties of products appropriate for the target market.

Inventory

refers to the amount of raw materials, work in progress and finished goods that a business has on hand at any particular point in time.

Job analysis

is an ongoing process, which is a detailed analysis of all the tasks, responsibilities, personal attributes and reporting relationships needed in a position.

Job design

is the process of designing the content of a job and how it will interact with other jobs and employees, so as to motivate and retain an employee and achieve the business's goals.

Job rotation

involves moving staff from one task to another over a period of time in order to multi skill employees.

Job sharing

occurs when two people share the same job.

Judicial power

refers to the power of courts to interpret and apply laws.

JIT

is an inventory management approach which ensures that the exact amount of material inputs will arrive only as they are needed in the operation process.

Key Performance Indicators

KPIs: are specific criteria used to measure the efficiency and effectiveness of the business's performance.

Label

is that part of the package that contains information.

Labelling

is the presentation of information on a product or its package.

Lead Time

is the time it takes for an order to be fulfilled from the moment it is made.

Leading edge technology

is the technology that is the most advanced or innovative at any point in time.

Lean production

aims to eliminate waste at every stage of production. It involves analyzing each stage of the production process, detecting where inefficiencies are and correcting them,

Learning

refers to changes in an individual's behavior caused by information and experiences.

Leasing

is a long term source of borrowing for businesses. It involves the payment of money for the use of equipment that is owned by another party.

Letter of credit

is a commitment by the importer's bank, which promises to pay the exported a specified amount when the documents proving shipment of the goods are presented.

Liabilities

are claims by people other than the owners against the assets, and represent what is owed by the business. Currency liabilities must be repaid within 12 months, whereas non-current liabilities must be met some time after the next 12 months.

LIFO

is a method of pricing inventory that assumes that the last goods purchased are also the first goods sold and therefore the cost of each unit sold is the last cost recorded.

Line managers

are responsible for the management of staff contributing to the prime function of the business, for example a production manager, service manager or sales manager.

Liquidity

is the extent to which a business can meet its financial commitments in the short term.

Lockouts

occur when employers close the entrance to a workplace and refuse admission to the workers.

Log of claims

is a list of demands made by workers (often through their union) against their employers. These demands cover specific wages and conditions. Employers may also serve a counter log of claims on the union.

Logistics

is a term broadly referring to distribution but includes transportation, the use of storage, warehousing and distribution centers, materials handling and packaging.

Loss Leader

is a product sold at or below cost price.

Maintenance

is the process of managing the needs of staff for health and safety, industrial relations and legal responsibilities, including compensation and benefits, of all staff.

Mark-up

is a predetermined amount that a business adds to the cost of a product to determine its basic price.

Market

is a group of individuals, organisations or both that need or want a product, have the money to purchase the product, are willing to spend their money to obtain the product, are socially and legally authorized to purchase the product.

Market based pricing

is a method of setting prices according to the interaction between the levels of supply and demand - whatever the market is prepared to pay.

Market coverage

refers to the number of outlets a firm chooses for its product.

Market-customized pricing

sets prices according to local market conditions.

Market research

is the process of systematically collecting, recording and analyzing information concerning a specific marketing problem.

Market segmentation

occurs when the total market is subdivided into groups of people who share one or more common characteristics.

Market share

refers to the business's share of the total industry sales for a particular product.

Marketing

is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives. It is a total system of interacting activities designed to plan, price, promote and distribute products to present and potential customers.

Marketing approach

focuses on finding out what customers want - through market research - and then satisfying that need.

Marketing concept

is a business philosophy that states that all sections of the business are involved in satisfying a customer's needs and wants while achieving the business's goals.

Marketing date

refers to the information relevant to the defined marketing problem.

Marketing mix

refers to the combination of the four elements of marketing, the four P's - product, price, promotion, place - that make up the marketing strategy.

Marketing objectives

are the realistic and measurable goals to be achieved through the marketing plan.

Marketing plan

is a document that lists activities aimed at achieving particular marketing outcomes in relation to goods or services. The plan provides a template for future action aimed at reaching business goals, such as profit maximization.

Marketing profitability analysis

is a method in which the business breaks down the total marketing costs into specific marketing activities.

Marketing strategies

are actions undertaken to achieve the business's marketing objectives through the marketing mix.

Mass customisation

is a process that allows a standard, mass produced item to be personally modified to specific customer requirements.

Mass marketing approach

seeks a large range of customers

Mass markets

the seller mass produces, mass distributes and mass promotes one product to all buyers.

Materialism

is an individuals desire to constantly acquire possessions.

Materials

are the basic elements used in the production process and consist of two types: raw materials and intermediate goods.

Mediation

is the confidential discussion of issues in a non-threatening environment, in the presence of a neutral, objective third party.

Mix flexibility

is the mix of products made, or services delivered through the information process.

Modern award

is an industry or occupation based award which covers all private sector employers and employees who perform work that falls within their scope. They replace all existing national system awards (except those applying to a single enterprise). They do not cover employees earning higher incomes.

Monetary awards

are those reflected in pay or having financial value.

Monitoring

is the process of measuring actual performance against planned performance. It means checking and observing the actual progress of the marketing plan.

Mortgage

is a loan secured by the property of the borrower (business).

Motive

is the reason that makes an individual do something.

Negotiation

is a method of resolving disputes when discussion between the parties result in a compromise and a formal or informal agreement.