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Business and Technology (BT-FBT) - For Exams from September 2023 - August 2024
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1 Business Organisation A social arrangement to achieve collective goals through controlled performance.

2 Stakeholder An entity that can affect or be affected by an organisation.

3 Influence The ability to affect another entity’s thinking, decisions, and actions.

4 Data subject Individuals whose data is processed.

5 Data user (controller) Entities that collect, store, and process personal data. Any entity or person that handles personal data.

6 Data processing Any action performed on data, whether automated or manual.

7 Personal data Any information relating to an individual that can be directly or indirectly identified.

8 Macroeconomics Study of the economy as a whole.

9 Gross domestic product (GDP) The value of the economy’s total output at a given price level for a period.

10 Aggregate demand (AD) The total expenditure in the economy for a period. It is essentially the total demand in the economy.

11 Aggregate supply The real value of the total output an economy can produce in a period.

12 Economic cycle The fluctuations in economic activity over time, characterised by states of expansion and contraction.
The economic cycle is typically measured in terms of GDP growth.

13 Inflation An increase in prices for goods and services over time.

14 Deflation A decrease in prices for goods and services over time.

15 Full Employment All individuals willing and able to work have a job. Typically means that there is no cyclical unemployment within the economy.

16 Unemployment rate The proportion of the population willing and able to work but unable to find employment.

17 Balance of payments The sum of all financial transactions between a country’s residents and residents of foreign nations.

18 Globalisation The promotion of the free flow of trade between countries without restrictions.

19 Comparative advantage Advantage a country enjoys when it can produce a good at a lower opportunity cost than other nations.

20 Public Sector Net Cash Requirement (PSNCR) The excess of government spending over collected revenues. Needs to be funded by additional taxes, borrowings or other means (i.e. foreign aids, grants, etc.).

21 Direct taxes Taxes paid directly to the government. Includes corporate and income taxes.

22 Indirect taxes Taxes collected on behalf of the government through agents. Includes value-added tax (VAT).

23 Microeconomics Study the economic decisions at the individual, firm, or industry level, and with particular markets, specific goods and services, and product and resource prices.

24 Market Where goods and services are sold.

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25 Industry The combination of firms that produce a good or service.

26 Demand The quantity of goods and services consumers want to purchase, at various price levels, for a specified period.

27 Quantity demanded The number of goods and services consumers want to purchase at a specific price over a specified period.

28 Demand curve A line on a graph with axes of quantity and price showing demand.

29 Supply The quantity of goods and services producers are willing to supply, at various price levels, for a specified period.

30 Quantity supplied The number of goods and services producers are willing to supply at a specific price over a specified period.

31 Supply curve A line on a graph with axes of quantity and price showing supply.

32 Equilibrium price The price level at which quantity supplied and demanded are equal.

33 Equilibrium quantity The quantity at a specific price level where demand and supply are equal.

34 Price elasticity of demand The extent demand changes in response to changes in price.

35 Elastic The rate of demand change is more than the rate of price change.

36 Unit elasticity The rate of demand change is proportional to the rate of price change.

37 Inelastic The rate of demand change is less than the rate of price change.

38 Average cost (AC) The average economic cost of output per unit.

39 Marginal cost (MC) The incremental economic cost of producing an additional output unit.

40 Short-run Economic state in the short-term where the supply of at least one factor of production is fixed.

41 Long-run Economic state where the supply of all factors of production is variable.

42 Economies of scale State where the average cost per unit (AC) reduces with increasing output.

43 Constant returns to scale Average cost per unit is constant with increasing output.

44 Diseconomies of scale State where the average cost per unit (AC) increases with increasing output.

45 Marginal revenue (MR) The incremental revenue earned from selling an additional unit.

46 Monopoly A market structure for which there is a dominant single seller.

47 Oligopoly A market structure where there are a few dominant sellers. Collusion and interdependence may exist.

48 Monopolistic competition A market structure with a large number of firms competing with each other to become monopolies.

49 Demographics Characteristics of a population, including its size, composition, ethnic background, age, gender, etc.

50 Social structure The organised pattern of social relationships and institutions that make up society. Social structure, for example, social class, affect all dimensions of human experience in society.

51 Downsizing Reduction in the size of a firm’s workforce.

52 Delayering Reducing the number of management layers in a firm.

53 Core competence An organisation's competence (resource or capability) surpassing its competitors. It is a source of competitive advantage.

54 Threshold competence A minimum competence that an organisation must have to survive.

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55 Competition The actions of firms to be sustainably profitable through competitive advantage.

56 Competitive advantage The ability of a firm to create value for its buyers that exceeds the costs of creating it, either through cost leadership (lower cost base than rivals) or differentiation (unique benefits
than rivals).

57 Value The difference between what a customer is willing to pay for a product over the costs of producing it.

58 Value network The interconnections between firms that create value for customers.

59 Formal organisation Explicit structure of the organisation, including reporting lines, job positions, roles, scope, areas of responsibility, and formal communication channels.
May be illustrated by an organisational chart.

60 Informal organisation Relationships and communication links between individuals in the organisation.

61 Shared service organisation Units within an organisation that provide services to the entire organisation. Shared services can be provided centrally for all divisions within a divisionalised organisation.

62 Span of control The number of subordinates directly reporting to an individual.

63 Scalar chain The chain of command within the organisation.

64 Outsourcing Contracting with an external firm to perform a task or function.

65 Offshoring Transferring operations to a different country.

66 Marketing The management process which identifies, anticipates and satisfies customer needs efficiently and profitably.

67 Market segment A portion of the market with a common attribute.

68 Committee A group of individuals committed to achieving a purpose.

69 Agenda Committee meeting discussion items.

70 Minutes Committee meeting records.

71 Culture The collective programming of the mind.

The expression of the attitude of people within a group and their collective beliefs and values.
The set of shared values and norms that characterise a social group.
“The way we do things around here.”

72 Norms A way of doing things or behaving.

73 Symbol Something that represents something else

74 Ritual A method of doing things that has meaning.

75 Corporate governance The system by which companies are directed and controlled.
The Cadbury Committee, 1992

76 Board of directors A group of individuals appointed by and representing shareholders to oversee and provide strategic leadership to the company.

77 External (statutory) audit The expression of an opinion to shareholders by an independent party that the financial statements give a true and fair view of the company’s financial position.

78 Internal audit An independent, objective assurance and consulting activity designed to add value and improve an organisation’s operations.

79 Sustainability Meeting the needs of the present without compromising the ability of future generations to meet their own needs.
Brundtland Commission, 1987

80 Account A file for keeping transactions of a similar type. For example, the account of a customer contains transactions with that customer.

81 Ledger A collection of similar accounts. For example, the payables ledger contains all customer accounts.

82 Budget A financial plan.

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83 Tax mitigation Utilisation of provisions within tax regulations to legitimately reduce tax liability.

84 Tax avoidance Using methods that are legally available to reduce tax liability. This may include exploiting loopholes in tax legislation and may be against the spirit of the law.

85 Tax evasion Failure to pay tax liabilities that are legally due.

86 Risk The probability that an adverse event will occur.

87 External audit A periodic examination of accounting books and records by an independent auditor to express an opinion (whether the financial statements are prepared, in all material respects, in
accordance with an identified financial reporting framework).

88 Data Raw facts and figures.

89 Information Data that has been processed to have meaning.

90 Internal control The process designed, implemented, and maintained by those charged with governance, management, and other personnel to provide reasonable assurance about the achievement of
an entity’s objectives with regard to:
reliability of financial reporting;
effectiveness and efficiency of operations; and
compliance with applicable laws and regulations.
IAASB Handbook

91 Control activities Policies and procedures that help ensure management directives are carried out.
IAASB Handbook

92 Cloud computing The use of services provided by remote servers hosted by a third party through the Internet.

93 Automation The operation of activities without the need for human intervention.

94 Artificial Intelligence (AI) Computer processing similar to human intelligence.

95 Big data Collections of data that increase exponentially over time, with too much volume, variety, and velocity for traditional data-processing methods to analyse effectively.

96 Data analytics The process of deriving meaning from data.

97 Blockchain An immutable digital ledger that records managed transactions and track assets over a decentralised network.

98 Fraud An act of deception intended to secure personal gain for the person committing the fraudulent act or to cause loss to someone else.

99 Whistleblower An individual that reports a suspicion or case of financial crime or other irregularity.

100 Money laundering Activities intended to conceal the origins of proceeds from criminal activity.

101 Leadership The social process where an individual convinces others to follow a direction through factors other than formal authority.

102 Management The process of organisation and coordination of activities to achieve objectives.

103 Supervision The management activity of directly overseeing the work of another individual.

104 Authority The right to make decisions, perform an activity, instruct others, and demand outcomes. It is usually derived from a formalised role.

105 Responsibility The obligation to use authority to its intended effect.

106 Delegation The management activity of empowering subordinates to exercise authority and be responsible and accountable.

107 Accountability The obligation to accept the consequences for the exercise of authority.

108 Power The ability to direct or influence the actions of others or the course of events.

109 Workgroup A formalised structure of individuals performing a function.

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110 Work team A small collection of individuals tasked with accomplishing a purpose.

111 Motivation The reason an individual does something.

112 Education The process of learning knowledge and skills with universal application.

113 Training The process of learning the knowledge and skills for a specific task.

114 Development The process of improving an individual's attitude, behaviour, and judgement, enhancing their potential and capability.

115 Effectiveness Achieving what is expected.

116 Dependency An event or activity requiring the completion of an earlier event or activity.

117 Competence The ability to do something well.

118 Coaching The process by which an individual helps another achieve a specific goal.

119 Mentoring The process by which an individual helps another to achieve greater capability and personal growth.

120 Counselling The process by which an individual helps another help themselves overcome a personal or psychological problem.

121 Conflict Disagreement between individuals on opinions, interests, or points of view.

122 Communication The transfer of information between individuals that leads to understanding.

123 Ethics Moral principles that govern a person’s behaviour.