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Above the Line Promotion |
The use of common types of media, such as TV and magazines, for promotion. |
Absenteeism |
A measure of staff absence. |
A.C.A.S. |
Advisory, Conciliation and Arbitration Service. An independent organisation set up in 1974 to help to settle industrial disputes between unions and employers. |
Accounting Rate of Return |
Method of investment appraisal that compares the expected annual profit to the initial cost of the investment. |
Accounts |
A record of all the financial transactions of a firm, usually for a year. It includes the profit and loss account and balance sheet. |
Added Value |
The way in which a business makes their inputs worth more by the time they are sold. |
Advertising |
Promotional communication using media such as TV and magazines. |
Advertising Agency |
A firm which produces advertisements for other businesses. |
Advertising Standards Authority (ASA) |
The organisation that regulates non-broadcasted advertising in the UK. |
After-Sales Service |
The meeting of customer needs after they have purchased a good or a service. |
Aggregate Demand |
The total level of demand in an economy |
AIDA |
Awareness, Interest, Desire, Action. A technique that can be used in developing the marketing of a product. |
Aims |
The long-term intentions of a business |
Annual General Meeting (A.G.M.) |
A meeting held once a year where the shareholders of a Public Limited Company (PLC) receive a report stating how well the company has done. They may also elect new directors to the company. |
Annual Percentage Rate (A.P.R.) |
This is the true rate of interest which has to be paid on borrowing. This must, by law, be stated by the lender when money is borrowed. |
Ansoff's Matrix |
A method of analysing the strategy of a business. Often used in marketing it looks at whether firms should enter new markets, or develop new products. |
Appraisal |
A method of measuring the performance of an employee. These are often carried out once a year. |
Appropriation Account |
The final section of a profit and loss account that shows where the profits in a business have been used. |
Aptitude Test |
A test often used in the recruitment process to test a specific skill of an applicant. |
Arbitration |
Where both unions and employers agree to present their dispute to an independent person, whose decision will be accepted. |
Assets |
Possessions which are owned by a business. They can be fixed e.g. buildings or current e.g. stock. |
Assembly Line |
Often involving a conveyor belt, this is where products will be put together. Usually associated with flow production. |
Assisted Areas |
Parts of the U.K. with high levels of unemployment where firms are given grants and other aid from the Government to set up new factories. |
Authority |
The right of people higher up the hierarchy of a business to give orders to people at a lower level of the hierarchy in the business. |
Autocratic Leader |
A boss who likes to make all of the decisions. |
Automation |
Where labour is replaced by machinery. |
Average Cost |
How much it costs, on average, to produce one unit. Calculated by dividing total costs by the number of units produced. |
Average Rate of Return (ARR) |
A method of comparing investment projects, by comparing the expected annual profit with the initial cost of the investment. |