LO1 - Additional Vocabulary PDF
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Uploaded by StatelyVerisimilitude
Algebra University College
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Summary
This document contains definitions for a range of business terms, including ROI, ROE, economies of scale, competitive advantage, mission statement, vision statement, cost centers, and profit centers. It also covers concepts such as universalists and collectivists.
Full Transcript
ROI – return on investment - the amount of return on a particular investment, relative to the investment’s cost ROE – return on equity – the amount of money a company earns on the investment of its shareholders ECONOMIES OF SCALE - represent the cost-savings and...
ROI – return on investment - the amount of return on a particular investment, relative to the investment’s cost ROE – return on equity – the amount of money a company earns on the investment of its shareholders ECONOMIES OF SCALE - represent the cost-savings and competitive advantages larger businesses have over smaller ones COMPETITIVE ADVANTAGE - ability to produce a good or service more efficiently than the competitors, which leads to greater profit margins MISSION STATEMENT - defines the company’s business, its objectives and its approach to reach those objectives VISION STATEMENT – describes the desired future position of the company COST CENTRE – a business unit that spends money but does not generate revenue PROFIT CENTRE – a division of the company that is accounted for on a standalone basis for the purposes of profit calculation UNIVERSALISTS – believe that personal goals, desires and interests are more important than those of a group of people COLLECTIVISTS – believe in the importance of group of people rather than separate individuals
