Basic Business Concepts

Team-Based Business Structure

• A business structure with a strict hierarchy and chain of command.

• A business structural design which consists of teams with the authority to make decisions and has no chain of command.

• A traditional business model focused on individual performance.

• A business structure that relies solely on remote teams without any physical presence.

Trough

• Period of the business cycle in which business activity is at its lowest.

• A phase where economic growth is at its peak.

• A time of rapid economic expansion and high employment.

• A stage where inflation rates are at their highest.

Accounting

• Category of the organizational functions of business which performs functions related to recording and reporting financial transactions.

• A method of managing human resources within an organization.

• A strategy for marketing products and services to consumers.

• A financial analysis technique used to evaluate investment opportunities.

Distribution

• Category of the organizational functions of business which delivers produced goods and services to consumers in a timely manner.

• A method of promoting products through advertisements and marketing campaigns.

• The process of manufacturing goods in a factory setting.

• A financial strategy for managing business expenses and revenues.

Operative Employees

• Employees who manage and oversee the work of other employees.

• Employees who produce an organization’s goods and services and generally do not manage or oversee the work of other employees.

• Employees who are responsible for strategic planning and decision-making.

• Employees who handle customer service and support inquiries.

Franchisor

• Business which leases its trade name and operating system to another person.

• A person who buys a franchise from a franchisor.

• A company that provides financial support to new businesses.

• An individual who operates a business independently without any brand affiliation.

Chain of Command

• Principle in which an employee should have only one supervisor to whom they are responsible; decreases conflicting demands and priorities.

• A system where employees can report to multiple supervisors for better guidance.

• A method to increase the number of supervisors for each employee to enhance support.

• A strategy to eliminate all supervisory roles in an organization.

Partnership

• A type of business owned by a single individual.

• Legal agreement between two or more people responsible for a business.

• A formal contract for hiring employees.

• A method of investing in stocks.

Organizational Functions

• Processes or activities executed within each level of business in order to achieve overall goals.

• Only the activities performed by top management in a company.

• The financial transactions that occur within an organization.

• The marketing strategies used to promote products.

Departmentalization

• Grouping of individuals based on work functions and product or service

• A method of increasing employee salaries

• A strategy for reducing operational costs

• A technique for improving customer service