ZNOTES.ORGUPDATED TO 2022 SYLLABUSCAIE A2 LEVELBUSINESS(9609)SUMMARIZED NOTES ON THE DEFINITIONS SYLLABUSCAIE A2 LEVEL BUSINESS (9609)18.Computer-aided manufacturing (CAM)-the use of1.Definitionscomputers and computer-controlled machinery tospeed up the production process and make it moreflexible1.Globalisation the increasing freedom of movement19.Environmental audits-assess the impact of aof goods,capital and people around the worldbusiness's activities on the environment2.Free trade no restrictions or trade barriers exist that20.Social audit-a report on the impact a business hasmight prevent or limit trade between countrieson society.This can cover pollution levels,health and3.Tariffs -taxes imposed on imported goods to makesafety record,sources of supplies,customerthem more expensive than they would otherwise besatisfaction and contribution to the community4.Quotas-limits on the physical quantity or value of21.Pressure groups-organisations created by peoplecertain goods that may be importedwith a common interest or aim who put pressure on5.Voluntary export limits-an exporting country agreesbusinesses and governments to change policies soto limit the quantity of certain goods sold to onethat an objective is reachedcountry(possibly to discourage the setting of22.Economic growth-an increase in a country'stariffs/quotas)productive potential measured by an increase in its6.Protectionism-using trade barriers to free trade toreal GDPprotect a country's own domestic industries23.Gross domestic product(GDP)-the total value of7.Multinational business-business organisation thatgoods and services produced in a country in one yearhas its headquarters in one country,but withreal GDP has been adjusted for inflation.operating branches,factories and assembly plants in24.Business investment-expenditure by businesses onother countriescapital equipment,new technology and research and8.Privatisation -selling state-owned and controlleddevelopmentbusiness organisations to investors in the private25.Business cycle the regular swings in economicsectoractivity,measured by real GDP,that occur in most9.External growth -business expansion achieved byeconomies,varying from boom conditions(highmeans of merging with or taking over anotherdemand and rapid growth)to recession when totalbusiness,from either the same or different industrynational output declines10.Merger-an agreement by shareholders and26.Recession -a period of six months or more ofmanagers of two businesses to bring both firmsdeclining real GDPtogether under a common board of directors with27.Inflation-an increase in the average price level ofshareholders in both businesses owning shares in thegoods and services-it results in a fall in the value ofnewly merged businessmoney11.Takeover-when a company buys more than 50%of28.Deflation-a fall in the average price level of goodsthe shares of another company and becomes theand servicescontrolling owner of it-often to as 'acquisition'29.Working population-all those in the population of12.Synergy-literally means that 'the whole is greaterworking age who are willing and able to workthan the sum of parts',so in integration it is often30.Unemployment-this exists when members of theassumed that the new,larger business will be moreworking population are willing and able to work,butsuccessful than the two formerly separate,businessesare unable to find a jobwere31.Cyclical unemployment-unemployment resulting13.Monopoly-theoretically a situation in which there isfrom low demand for goods and services in theonly one supplier,but this is very rare:foreconomy during a period of slow economic growth orgovemment policy purposes this is usually redefinedrecessionas a business controlling at least 25%of the market32.Structural unemployment-unemployment caused by14.Social audit-a report on the impact a business hasthe decline in important industries,leading toon society -this can cover pollution levels,health andsignificant job losses in one sector of industrysafety record,sources of supplies,customer33.Frictional unemployment-unemployment resultingsatisfaction and contribution to the communityfrom workers losing or leaving jobs and taking a15.Information technology-the use of electronicsubstantial period of time to find alternativetechnology to gather,store,process andemploymentcommunicate information34.Balance of payments(current account)-this account16.Innovation-creating more effective processesrecords the value of trade in goods and servicesproducts or ways of doing things in a businessbetween one country and the rest of the world.A17.Computer-aided design(CAD)-using computers anddeficit means that the value of goods and servicesIT when designing productsimported exceeds the value of goods and servicesexportedWWW.ZNOTES.ORGCAIE A2 LEVEL BUSINESS(9609)35.Exchange rate -the price of one currency in terms of54.Zero-hours contract-no minimum hours of work areanotheroffered and workers are only called in-and paid-when36.Exchange rate depreciation -a fall in the externalwork is availablevalue of a currency as measured by its exchange rate55.Labour productivity-the output per worker in a givenagainst other currencies.If $1 falls in value from E2 totime periodE1.5,the value of the dollar has depreciated in valueLabour productivity total output in time period/total37.Imports-goods and services purchased from otherworkers employedcountries56.Absenteeism-measures the rate of workforce38.Exports-goods and services sold to consumers andabsence as a proportion of the employee totalbusiness in other countriesAbsenteeism no.of employees absents/total no.of39.Exchange rate appreciation -a rise in the externalemployees*100value of a currency as measured by its exchange rate57.Workforce planning-analysing and forecasting theagainst other currencies.If$1 rises from€1.5to€1.8，numbers of workers and the skills of those workersthe value of the dollar has appreciatedthat will be required by the organisation to achieve its40.Fiscal policy-concerned with decisions aboutobjectivesgovemment expenditure,tax rates and government58.Workforce audit -a check on the skills andborrowing-these operate largely through thequalifications of all existing workers/managersgovemment's annual budget decisions59.Trade union-an organisation of working people with41.Government budget deficit-the value of governmentthe objective of improving the pay and workingspending exceeds revenue from taxationconditions of their members and providing them with42.Government budget surplus-taxation revenuesupport and legal servicesexceeds the value of government spending60.Trade union recognition-when an employer formally43.Monetary policy -is concerned with decisions aboutagrees to conduct negotiations on pay and workingthe rate of interest and the supply of money in theconditions with a trade union rather than bargaineconomyindividually with each worker44.Market failure-when markets fail to achieve the most61.Collective bargaining-the process of negotiating theefficient allocation of resources and there is under-orterms of employment between an employer and aoverproduction of certain goods or servicesgroup of workers who are usually represented by a45.External costs-costs of an economic activity that aretrade union officialnot paid for by the producer or consumer,but by the62.Terms of employment-include working conditionsrest of societypay,work hours,shift length,holidays,sick leave,46.Income elasticity of demand-measures theretirement benefits and health care benefitsresponsiveness of demand for a product after a63.Single-union agreement-an employer recognises justchange in consumer incomesone union for purposes of collective bargaining47.Hard HRM-an approach to managing staff that64.No-strike agreement-unions agree to sign a no-strikefocuses on cutting costs,e.g.,temporary and part-agreement with employers in exchange for greatertime employment contracts,offering maximuminvolvement in decisions that affect the workforceflexibility but with minimum training costs65.Industrial action-measures taken by the workforce48.Soft HRM-an approach to managing staff thator trade union to put pressure on management tofocuses on developing staff so that they reach self-settle an industrial dispute in favour of employeesfulfilment and are motivated to work hard and stay66.Organisational structure-the internal,formalwith the businessframework of a business that shows the way in which49.Part-time employment contract-employmentmanagement is organised and linked together andcontract that is for less than the normal full workinghow authority is passed through the organisationweek of,say,40 hours,e.g.,eight hours per week67.Matrix structure-an organisational structure that50.Temporary employment contract-employmentcreates project teams that cut across traditionalcontract that lasts for a fixed time period,e.g.,sixmonths68.Level of hierarchy-a stage of the organisational51.Flexi-time contract -employment contract that allowsstructure at which the personnel on it have equalstaff to be called in at times most convenient tostatus and authorityemployers and employees,e.g.,at busy times of day69.Chain of command -this is the route through which52.Outsourcing-not employing staff directly,but usingauthority is passed down an organisation -from thean outside agency or organisation to carry out somechief executive and the board of directorsbusiness functions70.Span of control the number of subordinates53.Teleworking-staff working from home but keepingreporting directly to a managercontact with the office by means of modern IT71.Delegation-passing authority down thecommunicationsorganisational hierarchyWWW.ZNOTES.ORG