Small Business Management:

Terminology:       Definition:

Accounts           Money debtors owe

Break even         Where total revenue equals total costs

Budget             Statement of income and expenditure

Contract           A legally binding agreement between two or more

Corporate Affairs  A place where a business is registered

Depreciation       Funds set aside to cover the wearing out of an asset

Equity             A share of accumulated funds of a company

Entrepreneur       Risk taker, but if successful gains a hefty amount
                   of money

Franchise          An agreement, busines permitted use registered name
                   under license

Incorporation      Process by which a firm legally becomes a company

Inventory          A list of stock waiting to be sold

Labour Turnover    The percentage of employees who leave work volentarily.

Leverage (Gearing) Using borrowed funds to purchase assets, or to
                   even continue in operation

Mark-up            Additional costs added upon the total cost of
                   the product sold, in which to establish a retail price

National Debt      Public sectors debts, which the Government owes
                   (Doesn't include Corporations)

Net worth          Total Assets - Total Liabilities

Patent             Copyright placed on a product/service which
                   stops other companies from copying the design
                   or using it without the companies permission

Professional       An insurance protecting a company (particularly
Indemnity          companies such as stockbroking agencies, accounting
                   services, etc)when an individual in an organisation
                   gives damaging advice, or provides a faulty service
                   or product

Profit margin      The amount made after passing a break-even point

Public Risk        An insurance covering the business against any
                   injuries sustained while a member of the public
                   is dealing with a business

Seed Capital       The initial amount of money invested into the
                   business, when starting a business. Capital
                   given to develop an idea

Taxation           Money charged by the government to all people,
                   who earn over a certain amount must pay back
                   some of it to the government, a tax also exists for
                   the profits of a company

Terms of Trade     A ratio of export prices to import prices

Transfer of title  Transfer of ownership of an item/product/land

Worker's           An insurance which covers emloyers when workers
Compensation       fall ill, or attain an injury while in a working

Working Capital    The difference extra between your assets and your


Product Marketing:

Customer base      All your customers

Distribution       The method of how a product arrives to the

Gross profit       The amount of money after costs have been taken
                   away from the amount from sales

Marketing          Activities concerned with gathering and analysing
Research           information to enable decisions on target markets
                   and the marketing mix

Pre-Tax Profit     See Gross Profit

Product            The business is liable for faulty products it
Liabilities        produces when an injury occurs

Product            The activities of a business based around a
Orientation        certain product

Profitability      How profitable/viable/cost effective a product

Representitive     Individuals or companies who sell your products


Industrial Relations:

Absenteeism        Accounts for between 13 to 18 times more working
                   days lost per year than those lost through strikes

ACTU               Australian Council of Trade Unions - Federal
                   association representing trade unions

Arbitration        Resolution of a dispute via a legally binding

Autocratic Style   A non-democracy type of management

Award              Legal agreements that set out the terms and
                   conditions of employment

Boycotts           Protests and restrictions impossed by a union
                   eg. when workers refuse to perform certain tasks
                   in relation to certain demands

Collective         Direct negotiations between unions and management

Conciliation       Process whereby a third party tries to find

Deregistration     Can happen to a union in cases of industrial
                   misconduct or repeated rejection of industrial
                   relations principles or orders

Dispute            Created when a log of claims is served by one
                   party and rejected by another

Employer           They guide their members in relation to awards
Association        and legislations and promote commercial intrests
                   of members

Fringe Benefit     Non-wage forms of income, provided by an employer,
                   eg. a company car

Industrial         The study of how individuals, grouped, organisation
Relations          and institutions make decisions that shape the
                   employment relationship between management and labour

IRC                Industrial Relations Commission - Federal body
                   established to settle industrial disputes

Lockout            A direct form of action involving the employer not
                   allowing workers to enter the place of work

Log of Claims      List of demands by a union

Managerial         Rules established by management

Mediation          Intervention into a dispute by a neutral third
                   party, who is not acting on state or federal legislation

Negotiation        Workers meet management to discuss issues without
                   the intervention or assistance of authorities

Occupational       Issues concerning a workers welfare
Health & Safety

Orders             A demand by the IRC for certain actions to be taken
                   by employee and/or employers

Party              Government, Tribunals, Employees, Employers, Employer
                   associations, and Trade Unions

Picket             Physical presence of workers protesting outside a

Shop Steward       On-site union representitive

Trade Union        A group of workers who join together to improve
                   wages and working conditions

Union Organiser    Off-site union representitive

Work Ban           A refusal to undertake a certain request

Work Practices     Rules about non-wage issues

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Converted on 22 Jul 1996 with RexxDoesAmigaGuide2HTML by Michael Ranner.