Keywords for CPA Contemporary Business Issues:
Keyword Definition Page
Reference
Adaptive Mindset A state of mind that welcomes opportunities to improve and responds well Module 2 – Part C
to change (p.42)
Agency relationship When the principal delegates the decision-making authority to the agent Module 5 – Part A
(p.346)
Agency theory Used to understand relationships whereby a person or group of persons (the Module 5 – Part A
principal, in business terms the shareholders) employs the services of another (the (p.346)
agent, in business terms the managers) to perform some activity on their behalf
Agile Approach De-emphasises methodology and instead emphasises flexibility, Module 1 – Part B
particularly the ability to adapt to change with the focus squarely on the (p.35)
product, and risk management and levels of governance are secondary
Angel investment Equity funding provided to new ventures by high net worth individuals who Module 2 – Part C
generally fill the start-up financing gap between seed financing from the (p.126-127)
entrepreneur, friends and family, and later stage VC
Angel investors Angel investors often provide funds to start-ups, and the amount is relatively Module 2 – Part C
small, which, in a portfolio of investments, keeps the risk for the investor low. (p.137)
Artificial intelligence (AI) The specialisation that focuses on creating software and hardware to perform in Module 2 – Part A
ways that appear equivalent to the intelligence displaying by humans (p.89)
Assisted intelligence Use of AI intended to help people perform tasks faster and better in which the AI Module 2 – Part A
machine does not learn new behaviours based on experience but just detects the (p.89)
behaviour and performs the same task. (E.g. Reverse camera in cars)
Augmented intelligence An AI application that helps people to make better decisions (E.g. IBM Watson). Module 2 – Part A
E.g. A doctor looking at the results of a blood test can get help from an augmented (p.89)
intelligence AI machine which could quickly access and filter massive amounts of
medical data to help narrow a diagnosis based on the blood test
Authenticity divide The discrepancy between what is said and what is done which is increasingly Module 5 – Part D
important as technology increases transparency of business actions and as (p.407)
campaign groups increasingly seek to influence consumer attitudes towards
unsustainable practices and those who engage in them
Balanced scorecard (BSC) A method of measuring business performance from financial and nonfinancial Module 4 – Part C
perspectives and serves as a summary of performance against targets in those (p.308)
areas most relevant to achieving the business’s strategic goals with 4 perspectives
of Financial, Customer, Internal Processes and Learning
Biodiversity The diversity of genes, species, ecosystems and landscapes on the planet, provides Module 4 – Part A
businesses with access to a variety of natural resources (p.271-278)
Bioenergy Refers to biofuels and biomass Module 4 – Part A
(p.256)
Biofuels Produced from organic matter and act as substitutes for fossil fuels and can be Module 4 – Part A
produced from sugar- and starch-producing plants (e.g. sugarcane), and from (p.256)
vegetable and animal fats respectively
Biomass Refers to crops, trees, sewage, manure, straw, animal fats and rubbish, which can Module 4 – Part A
be burnt to generate heat and the carbon dioxide emissions generated by the (p.256)
burning of biofuels and biomass are offset by the absorption of carbon dioxide as
the next crop grows
Bonding costs The time and effort involved in producing and providing quarterly accounting Module 5 – Part A
reports to lenders (p.347)
Bottom-up change Driven through initiatives for change from people throughout an Module 1 – Part D
organisation and are supported by the efforts of middle-level and lower (p.80-81)
level managers acting as change agents
Brokerage The connections between teams and is important to the organisation to ensure Module 3 – Part A
collaboration between different groups, and the more brokers there are, the (p.171)
, better
Workplace Bullying Includes persecuting or ganging up on an individual, making unreasonable Module 3 – Part B
demands or setting impossible work targets, making restrictive and petty work (p.200)
rules, constant intrusive surveillance, shouting, abusive language, public shaming,
rude interruptions, hostile emails, physical assault, and open or implied threats of
dismissal or demotion
Business Acumen The ability to understand how a firm works and how to make it work Module 1 – Part B
effectively to achieve the business’s goals (p.25)
Business analytics An approach to decision making informed by the analysis of quantitative data Module 1 – Part A
(p.3)
Business Intelligence Refers to the outcome of data collection, data analysis, data visualisation and Module 2 – Part B
reporting, and has the aim of enabling decision makers to make the best-informed (p.95)
decision
Business model Essentially describes everything about how the business creates and delivers value Module 2 – Part A
to its stakeholders and there are countless different business models being used (p.90-92)
successfully by organisations around the world
Business Planning A comprehensive written document that explains and analyses a business Module 1 – Part B
and its entire operations by explaining its goals, how it will operate and the (p.26-30)
likely outcomes of the business
Captive (In-house) The practice of firms setting up their own operations in a foreign country Module 2 – Part A
offshoring (p.96)
Carbon Disclosure Project The not-for-profit CDP was established to be a repository of information about Module 4 – Part C
(CDP) carbon emissions and other aspects of climate change that could be accessed by (p.312-313)
interested parties
Carbon emissions Measures of emissions are usually converted into a carbon dioxide equivalent Module 4 – Part B
amount, (p.286)
Carbon emissions trading Facilitates the trading of carbon credits, allowing the market to set the carbon Module 4 – Part B
scheme (ETS) (Cap and price and ETSs are mostly established within a single country, but some regional (p.289)
Trade) carbon trading markets have emerged, such as the EU
Carbon tax An environmental tax levied on the emission of carbon dioxide or equivalents and Module 4 – Part B
create a fixed price for emissions to motivate reductions (p.288,292)
Cascaded communication A message that is passed down through the layers of management allows the Module 5 – Part B
message to be tailored to the needs of different parts of the organisation, but the (p.362)
consistency of the message may suffer through modification or misinterpretation
as it is retransmitted
Change agent A person or group who takes leadership responsibility for changing the Module 1 – Part D
existing pattern of behaviour of another person or system (p.80)
Charisma This means arousing others’ enthusiasm, faith, loyalty, pride and trust in Module 1 – Part D
themselves through the power of personal reference and appeals to (p.67)
emotion
Chat bots Software robots capable of mimicking human conversation and rely on a Module 5 – Part C
combination of technologies, including machine learning, natural language (p.393)
processing, image processing, video processing and audio analysis
Climate change Associated with human activity, particularly GHG emissions from burning fossil Module 4 – Part B
fuels, as well as deforestation and other land use changes and is liked with (p.286)
increased risk of extreme weather events, increased global temperatures, melting
of snow and ice and higher sea levels, and has become a primary environmental
focus throughout the world
Cloud computing The provision of computer applications and services by centralised internet- based Module 2 – Part A
service providers (E.g. AWS) to replace or complement, software and hardware (p.102)
owned and managed by an individual or organisation
Coercive power The ability to influence through punishment Module 1 – Part D
(p.65)
Collaborative robots Robots intended to work alongside people Module 3 – Part C
(‘cobots’) (p.218)
,Common assumptions The taken-for-granted truths, that collections of organisational members share as Module 3 – Part A
a result of their joint experience (p.173)
Communication Central to all personal and professional relationships and is used to inform, Module 1 – Part C
instruct, persuade, exert influence, change behaviour, interact, and build (p.48)
rapport and affinity
Communication channels Formal communications structure to enable common messages to be sent to Module 5 – Part B
groups of people, either inside or outside the organisation (p.361)
Communities of practice Groups of people within organisations who perform similar functions or face Module 3 – Part D
(CoPs) similar problems in different parts of an organisation (e.g. accountants located in (p.225-226)
different business units of a large organisation)
Community-Based Include village-based entities such as village banks and self-help groups (SHGs) Module 2 – Part E
Financial Organisations (p.146)
(CBFOs)
Consumer The intended recipient of a message and to receive a message, they must Module 1 – Part C
interpret the meaning of its contents which is dependent on their (p.49)
perspective as well as their relationship and opinion of the creator
Contingency theory Proposes that organisations are all affected by a range of factors that differ across Module 5 – Part A
organisations and thus they need to adapt their structure for a range of factors (p.350)
such as the external environment, organisational size and business strategy, if the
organisation is to perform well
Contractors Workers in in a business or contractual arrangement with a business, rather than Module 2 – Part A
an employment arrangement (E.g. Traditional contract workers are highly skilled (p.104-105)
and highly paid)
Contracting theory Suggests that an organisation is characterised as a legal ‘nexus of contracts’ or as Module 5 – Part A
the centre of contractual relationships, with contracting parties having rights and (p.346)
responsibilities under these contracts
Conversational commerce Refers to ecommerce that uses conversation as part of the transaction process Module 5 – Part D
which can involve digitally mediated communication between people or between (p.394)
a person and a technology, such as a chat bot
Corporate culture The system of shared beliefs and values that develops within an organisation and Module 3 – Part A
guides the behaviour of its members (p.172-176)
Corporate governance Specifies the distribution of rights and responsibilities among the different Module 5 – Part A
participants in the organisation — such as the board, managers, shareholders and (p.342-344)
other stakeholders — and lays down the rules and procedures for decision-making
Corporate Social Capital The sum of individual employee intellectual and human capital Module 3 – Part A
(p.171)
Corporate social Based on the idea that business activities should protect and benefit the natural Module 5 – Part A
responsibility (CSR) environment and society (p.343-346)
Country club leaders Show high concern for people and low concern for tasks — they are warm Module 1 – Part D
in interpersonal relationships, avoid conflict and seek harmony in decision (p.79)
making, but may not achieve the business objectives
Creative thinking Involves generating new ideas, thinking about something from a new Module 1 – Part C
perspective and making new connections between ideas (p.46)
Creator The person who wishes to communicate a business message which will be Module 1 – Part C
created for the purpose of instructing or directing the activities of staff or (p.49)
suppliers, providing information to staff, management, customers or
shareholders, or requesting information from them, or promoting products
or services to the market
Crisis management Involves dealing with a situation from when it arises up to the point of recovery Module 5 – Part D
(p.412)
Critical Path Method This method identifies interdependencies between tasks to determine Module 1 – Part B
(CPM) which tasks can be done in parallel and which will require the completion (p.36)
of other tasks first
Critical thinking Involves evaluating which information is relevant, questioning information Module 1 – Part C
, where required, interpreting information and formulating a (p.46-47)
recommendation or decision based on logic without bias
Crowdsourcing Refers to harnessing contributions from participants on a digital platform to make Module 2 – Part A
a product (p.100-102)
Customer Focus Every aspect of the business’s operations considers its role in providing Module 1 – Part B
customer satisfaction and the business culture supports this (p.25-26)
Data visualisation The use of charts, tables and interactive dashboards to display, examine and Module 1 – Part A
explore data and analytics (p.21)
Debt financing Involves borrowing funds and then paying them back over time along with interest Module 2 – Part C
for the use of the money and it places a burden of repayment and interest on the (p.119-120)
entrepreneur
Development The ongoing process of learning and growth Module 3 – Part A
(p.167)
Digital Cooperative Cooperative digital platforms or networks that encompass all those cooperatively Module 2 – Part A
owned technologies that enable their constituent communities to create, (p.101)
contribute to and use their online network
Digital tokens Blockchain facilitates the digital representation and exchange of value, rights or Module 2 – Part E
assets using a variety of currencies (p.148)
Direct communication A common message is broadcast equally to all staff or to large groups which has Module 5 – Part B
the benefit of consistency but will tend to suffer from a lack of detail and (p.362)
relevance to different parts of the organisation
Distributed ledger The use of systems to allow multiple parties to conduct transactions transparently Module 2 – Part D
technology and record entries on a shared ledger that is trusted by all parties (p.135)
Diversity The differences in the demographics of the workforce which range across factors Module 3 – Part C
such as age, educational attainment, race, sex and ethnic background (p.214)
Electrolysis Relies on running an electric current through water to separate the hydrogen and Module 4 – Part A
oxygen that makes up water (p.257)
Emotional intelligence The ability to manage ourselves and our relationships effectively Module 1 – Part C
(EQ) (p.57-60)
Empathy The ability to understand the emotions of others and to use this Module 1 – Part A
understanding to better relate to them (p.10)
Employee value Refers to the balance of what employees give — time, effort, ideas, knowledge — Module 3 – Part A
proposition and take — tangible rewards, the substance of the work, the experience — in the (p.182)
employment arrangement
Empowerment The process through which leaders enable others to gain power and Module 1 – Part D
achieve influence within the organisation (p.79-80)
Energy audit A detailed analysis of how a business uses energy that results in a cost–benefit Module 4 – Part A
comparison of various initiatives the business can pursue to reduce energy (p.250)
consumption
Entrepreneurship A dynamic process of vision, change, and creation. It requires an application of Module 1 – Part A
energy and passion towards the creation and implementation of new ideas and (p.18)
creative solutions
Environmental cost Includes the cost of wasted resources (e.g. wasted raw materials or wasted Module 4 – Part C
capital) and costs incurred by measures specifically taken to protect the (p.304)
environment (e.g. the higher cost of switching to sustainably produced electricity)
Environmental Accountants are aiming to improve outcomes for all stakeholders, and the focus Module 4 – Part C
Management Accounting should be to obtain and exploit competitive advantages in an ethical and (p.303)
(EMA) sustainable manner
Equity crowdfunding Involves many investors taking a small equity stake in a business which enables Module 2 – Part C
entrepreneurs to receive finance without having to give up control, as would often (p.125)
be the case with funding by venture capitalists
Equity financing Money invested in the venture with no legal obligation for entrepreneurs to repay Module 2 – Part C
the principal or pay interest but requires sharing the ownership and profits with (p.119-120)
the funding source
Ethical dilemma Occurs when action must be taken but there is no clear ‘ethically right’ Module 1 – Part C
, option (p.61)
Exchange Offering to do something for someone in exchange for their doing Module 1 – Part C
something (p.52)
Expert power The ability to persuade or influence because of expertise Module 1 – Part
C, D (p.51,65)
Expertise location They allow staff to develop personal profiles, enhancing community development Module 3 – Part D
and the ability of people in the organisation to find others with areas of expertise (p.226)
Explicit expectations Reflected in, for example, legislation relating to pollution or employee health and Module 5 – Part A
safety (p.348)
Explicit knowledge Recorded knowledge (E.g. Notes or handbooks) Module 3 – Part D
(p.221,229)
eXtensible Business A standardised electronic format for the communication of financial and business Module 5 – Part B
Reporting Language (XBRL) information to stakeholders to meet regulatory reporting obligations (p.368)
External adaptation Involves reaching goals and dealing with outsiders and these issues involve the Module 3 – Part A
tasks to be accomplished, the methods used to achieve the goals and the methods (p.174)
of coping with success and failure
Fly-in, fly-out (FIFO) model Work arrangements involve the worker travelling to the workplace, then work for Module 3 – Part C
extended hours (often 12 hours a day) over an extended period of days (e.g. three (p.215)
weeks without a break) before travelling home again for a break (e.g. for a week)
Formal leadership The style exerted by individuals appointed to or elected to positions of Module 1 – Part D
formal authority in organisations (p.64)
Free offering Such business models usually evaluate customer data for advertising or Module 2 – Part A
personalised offers and thus open a pathway to revenues (E.g. Facebook) (p.105)
Freemium The business practice of giving away a service at no cost to the consumer as a way Module 2 – Part A
of establishing the foundation for future transactions which quickly establishes a (p.105-106)
large customer base
Full-range leadership Consists of 9 factors: 5 transformational, 3 transactional and 1 non- Module 1 – Part D
theory transactional factor. (p.67-69)
Gantt charts These provide a linear representation of the timing of each task in a Module 1 – Part B
project (p.36)
Geothermal energy Heat generated by the Earth but the challenge occurs when trying to manage the Module 4 – Part A
water and pressure levels used in the system to maintain land stability, and to (p.257)
manage emissions of gases and minerals contained in geothermal fluids
Gig economy Refers to the activities of that part of the labour force that engages in freelance Module 2 – Part A
work or short-term contracts rather than traditional full-time, part-time or casual (p.108-109)
work arrangements
Gig workers The segment of workers who take on short-term, often low-value, work under a Module 2 – Part A
contract arrangement rather than an employment arrangement (E.g. Uber) (p.104-105)
Global Reporting Initiative A multi-stakeholder, non-profit organisation with strategic partnerships with the Module 4 – Part C
(GRI) UN and the GRI Sustainability Reporting Standards are the most extensively used (p.301,312)
framework for sustainability reporting
Greenhouse gases (GHGs) Includes all gases that contribute to the greenhouse effect Module 4 – Part A
(p.248, 286)
Greenwashing The use of deception to convince stakeholders that an organisation is undertaking Module 5 – Part D
sustainable practices (E.g. Glencore – Project Caesar) (p.406-409)
Group cohesion The connectedness of the individuals within a group as highly cohesive groups Module 3 – Part A
exhibit higher levels of trust and more effective knowledge sharing than groups (p.171)
that lack cohesion and relates directly to how effective the team is
Maslow Hierarchy of Identified some needs as more important than others, with needs lower in the Module 3 – Part A
needs hierarchy being prerequisites for satisfying needs higher in the hierarchy (p.183)
High-context cultures Other cultures rely heavily on indirect and complex methods and are Module 1 – Part C
known as high-context cultures. In such cultures, feelings and thoughts are (p.55)
not explicitly expressed; instead, you have to ‘read between the lines’ and
interpret meaning from your general understanding (E.g. Asia)
, High-performance HRM Refers to policies and practices that promote superior employee performance and Module 3 – Part A
give the organisation a competitive edge (p.164)
Hot desking Communal desks and other facilities (e.g. power, phone and network connections) Module 3 – Part A
intended for use by workers who are not usually in the office. (p.165)
Hotelling When teleworkers do come into the central office to work Module 3 – Part C
(p.209)
Human capital A component of intellectual capital and refers to how the skills, training, Module 3 – Part A
education, experience and value of an organisation’s workforce contribute to the (p.170)
growth of the organisation
Human resource The strategic management of people in an organisation to contribute effectively Module 3 – Part A
management (HRM) towards the organisation’s strategic objectives and the employee’s needs (p.163)
Human sigma Enables accountants to produce data and, therefore, measures of employee– Module 3 – Part A
customer encounters which will assist the accountant in providing authoritative (p.172)
advice and assist management in making informed decisions that will affect
customer-facing employees.
Hydropower Power generated from the movement of falling or fast-flowing water to turn Module 4 – Part A
turbines, which produces electricity and is feasible only where the natural terrain (p.256)
and watercourses are suitable (E.g. Europe, NZ, Australia)
Hygiene factors Relate to the work context and involve things like adequate air-conditioning, low Module 3 – Part A
noise, privacy, freedom from harassment and access to the tools required to do (p.164)
the job
Idea generation The leader should apply creative problem-solving techniques or embrace Module 1 – Part D
intellectual stimulation as they look towards guiding others. They should (p.69)
also support new ideas, become involved with people who are developing
ideas and grant these people freedom to pursue their ideas.
Idea promotion This involves gathering support from the broader organisation for the Module 1 – Part D
creative enterprise ‘as a whole’ as well as the implementation of a specific (p.70)
idea or project. Idea promotion places the leader in a persuasive mode in
which ideas must be placed in the context of broader organisational
strategies if they are to succeed
Idea structuring Leaders should set broad output expectations and identify and integrate Module 1 – Part D
projects to be pursued but not involve day-to-day direction or close (p.69)
supervision of work. Idea structuring activities tend to be indirect and to
entail the creation of action or project frameworks that maximise worker
autonomy (E.g. It may be more useful to set a deadline than to show
someone how to meet this deadline)
Implicit terms The social contract can be gained from the writing and other communications of a Module 5 – Part A
society at a point in time, such as membership of environmental groups (p.348)
Impoverished leaders Display low concern for people and tasks turn most decisions over to the Module 1 – Part D
work group and show little interest in the work process or its results (p.79)
Inattentional blindness The phenomenon in which people only take in information that appears directly Module 5 – Part B
related and relevant to what they are doing (p.371)
Incremental innovation Involves improvements to something that already exists and can occur in any Module 2 – Part A
aspect of the business (E.g. Payment systems) (p.88-89)
Induction (onboarding) Refers to the process of integrating new employees into the business Module 3 – Part A
(p.167)
Informal investors Initial start-up funding comes from the 4Fs — friends, family, founders and other Module 2 – Part C
‘foolhardy investors’ (neighbours, work colleagues and even strangers) (p.124)
Informal leadership This approach is exerted by individuals who become influential because Module 1 – Part D
they have special skills that meets the needs and resources of others (p.65)
Infrastructure as a Service The simplest form of cloud computing as it provides the organisation with virtual Module 2 – Part A
(IaaS) machines, storage, servers and networking components, enough to enable the (p.103)
user to deploy their own software
Innovation The process of creating something new Module 2 – Part A
Keyword Definition Page
Reference
Adaptive Mindset A state of mind that welcomes opportunities to improve and responds well Module 2 – Part C
to change (p.42)
Agency relationship When the principal delegates the decision-making authority to the agent Module 5 – Part A
(p.346)
Agency theory Used to understand relationships whereby a person or group of persons (the Module 5 – Part A
principal, in business terms the shareholders) employs the services of another (the (p.346)
agent, in business terms the managers) to perform some activity on their behalf
Agile Approach De-emphasises methodology and instead emphasises flexibility, Module 1 – Part B
particularly the ability to adapt to change with the focus squarely on the (p.35)
product, and risk management and levels of governance are secondary
Angel investment Equity funding provided to new ventures by high net worth individuals who Module 2 – Part C
generally fill the start-up financing gap between seed financing from the (p.126-127)
entrepreneur, friends and family, and later stage VC
Angel investors Angel investors often provide funds to start-ups, and the amount is relatively Module 2 – Part C
small, which, in a portfolio of investments, keeps the risk for the investor low. (p.137)
Artificial intelligence (AI) The specialisation that focuses on creating software and hardware to perform in Module 2 – Part A
ways that appear equivalent to the intelligence displaying by humans (p.89)
Assisted intelligence Use of AI intended to help people perform tasks faster and better in which the AI Module 2 – Part A
machine does not learn new behaviours based on experience but just detects the (p.89)
behaviour and performs the same task. (E.g. Reverse camera in cars)
Augmented intelligence An AI application that helps people to make better decisions (E.g. IBM Watson). Module 2 – Part A
E.g. A doctor looking at the results of a blood test can get help from an augmented (p.89)
intelligence AI machine which could quickly access and filter massive amounts of
medical data to help narrow a diagnosis based on the blood test
Authenticity divide The discrepancy between what is said and what is done which is increasingly Module 5 – Part D
important as technology increases transparency of business actions and as (p.407)
campaign groups increasingly seek to influence consumer attitudes towards
unsustainable practices and those who engage in them
Balanced scorecard (BSC) A method of measuring business performance from financial and nonfinancial Module 4 – Part C
perspectives and serves as a summary of performance against targets in those (p.308)
areas most relevant to achieving the business’s strategic goals with 4 perspectives
of Financial, Customer, Internal Processes and Learning
Biodiversity The diversity of genes, species, ecosystems and landscapes on the planet, provides Module 4 – Part A
businesses with access to a variety of natural resources (p.271-278)
Bioenergy Refers to biofuels and biomass Module 4 – Part A
(p.256)
Biofuels Produced from organic matter and act as substitutes for fossil fuels and can be Module 4 – Part A
produced from sugar- and starch-producing plants (e.g. sugarcane), and from (p.256)
vegetable and animal fats respectively
Biomass Refers to crops, trees, sewage, manure, straw, animal fats and rubbish, which can Module 4 – Part A
be burnt to generate heat and the carbon dioxide emissions generated by the (p.256)
burning of biofuels and biomass are offset by the absorption of carbon dioxide as
the next crop grows
Bonding costs The time and effort involved in producing and providing quarterly accounting Module 5 – Part A
reports to lenders (p.347)
Bottom-up change Driven through initiatives for change from people throughout an Module 1 – Part D
organisation and are supported by the efforts of middle-level and lower (p.80-81)
level managers acting as change agents
Brokerage The connections between teams and is important to the organisation to ensure Module 3 – Part A
collaboration between different groups, and the more brokers there are, the (p.171)
, better
Workplace Bullying Includes persecuting or ganging up on an individual, making unreasonable Module 3 – Part B
demands or setting impossible work targets, making restrictive and petty work (p.200)
rules, constant intrusive surveillance, shouting, abusive language, public shaming,
rude interruptions, hostile emails, physical assault, and open or implied threats of
dismissal or demotion
Business Acumen The ability to understand how a firm works and how to make it work Module 1 – Part B
effectively to achieve the business’s goals (p.25)
Business analytics An approach to decision making informed by the analysis of quantitative data Module 1 – Part A
(p.3)
Business Intelligence Refers to the outcome of data collection, data analysis, data visualisation and Module 2 – Part B
reporting, and has the aim of enabling decision makers to make the best-informed (p.95)
decision
Business model Essentially describes everything about how the business creates and delivers value Module 2 – Part A
to its stakeholders and there are countless different business models being used (p.90-92)
successfully by organisations around the world
Business Planning A comprehensive written document that explains and analyses a business Module 1 – Part B
and its entire operations by explaining its goals, how it will operate and the (p.26-30)
likely outcomes of the business
Captive (In-house) The practice of firms setting up their own operations in a foreign country Module 2 – Part A
offshoring (p.96)
Carbon Disclosure Project The not-for-profit CDP was established to be a repository of information about Module 4 – Part C
(CDP) carbon emissions and other aspects of climate change that could be accessed by (p.312-313)
interested parties
Carbon emissions Measures of emissions are usually converted into a carbon dioxide equivalent Module 4 – Part B
amount, (p.286)
Carbon emissions trading Facilitates the trading of carbon credits, allowing the market to set the carbon Module 4 – Part B
scheme (ETS) (Cap and price and ETSs are mostly established within a single country, but some regional (p.289)
Trade) carbon trading markets have emerged, such as the EU
Carbon tax An environmental tax levied on the emission of carbon dioxide or equivalents and Module 4 – Part B
create a fixed price for emissions to motivate reductions (p.288,292)
Cascaded communication A message that is passed down through the layers of management allows the Module 5 – Part B
message to be tailored to the needs of different parts of the organisation, but the (p.362)
consistency of the message may suffer through modification or misinterpretation
as it is retransmitted
Change agent A person or group who takes leadership responsibility for changing the Module 1 – Part D
existing pattern of behaviour of another person or system (p.80)
Charisma This means arousing others’ enthusiasm, faith, loyalty, pride and trust in Module 1 – Part D
themselves through the power of personal reference and appeals to (p.67)
emotion
Chat bots Software robots capable of mimicking human conversation and rely on a Module 5 – Part C
combination of technologies, including machine learning, natural language (p.393)
processing, image processing, video processing and audio analysis
Climate change Associated with human activity, particularly GHG emissions from burning fossil Module 4 – Part B
fuels, as well as deforestation and other land use changes and is liked with (p.286)
increased risk of extreme weather events, increased global temperatures, melting
of snow and ice and higher sea levels, and has become a primary environmental
focus throughout the world
Cloud computing The provision of computer applications and services by centralised internet- based Module 2 – Part A
service providers (E.g. AWS) to replace or complement, software and hardware (p.102)
owned and managed by an individual or organisation
Coercive power The ability to influence through punishment Module 1 – Part D
(p.65)
Collaborative robots Robots intended to work alongside people Module 3 – Part C
(‘cobots’) (p.218)
,Common assumptions The taken-for-granted truths, that collections of organisational members share as Module 3 – Part A
a result of their joint experience (p.173)
Communication Central to all personal and professional relationships and is used to inform, Module 1 – Part C
instruct, persuade, exert influence, change behaviour, interact, and build (p.48)
rapport and affinity
Communication channels Formal communications structure to enable common messages to be sent to Module 5 – Part B
groups of people, either inside or outside the organisation (p.361)
Communities of practice Groups of people within organisations who perform similar functions or face Module 3 – Part D
(CoPs) similar problems in different parts of an organisation (e.g. accountants located in (p.225-226)
different business units of a large organisation)
Community-Based Include village-based entities such as village banks and self-help groups (SHGs) Module 2 – Part E
Financial Organisations (p.146)
(CBFOs)
Consumer The intended recipient of a message and to receive a message, they must Module 1 – Part C
interpret the meaning of its contents which is dependent on their (p.49)
perspective as well as their relationship and opinion of the creator
Contingency theory Proposes that organisations are all affected by a range of factors that differ across Module 5 – Part A
organisations and thus they need to adapt their structure for a range of factors (p.350)
such as the external environment, organisational size and business strategy, if the
organisation is to perform well
Contractors Workers in in a business or contractual arrangement with a business, rather than Module 2 – Part A
an employment arrangement (E.g. Traditional contract workers are highly skilled (p.104-105)
and highly paid)
Contracting theory Suggests that an organisation is characterised as a legal ‘nexus of contracts’ or as Module 5 – Part A
the centre of contractual relationships, with contracting parties having rights and (p.346)
responsibilities under these contracts
Conversational commerce Refers to ecommerce that uses conversation as part of the transaction process Module 5 – Part D
which can involve digitally mediated communication between people or between (p.394)
a person and a technology, such as a chat bot
Corporate culture The system of shared beliefs and values that develops within an organisation and Module 3 – Part A
guides the behaviour of its members (p.172-176)
Corporate governance Specifies the distribution of rights and responsibilities among the different Module 5 – Part A
participants in the organisation — such as the board, managers, shareholders and (p.342-344)
other stakeholders — and lays down the rules and procedures for decision-making
Corporate Social Capital The sum of individual employee intellectual and human capital Module 3 – Part A
(p.171)
Corporate social Based on the idea that business activities should protect and benefit the natural Module 5 – Part A
responsibility (CSR) environment and society (p.343-346)
Country club leaders Show high concern for people and low concern for tasks — they are warm Module 1 – Part D
in interpersonal relationships, avoid conflict and seek harmony in decision (p.79)
making, but may not achieve the business objectives
Creative thinking Involves generating new ideas, thinking about something from a new Module 1 – Part C
perspective and making new connections between ideas (p.46)
Creator The person who wishes to communicate a business message which will be Module 1 – Part C
created for the purpose of instructing or directing the activities of staff or (p.49)
suppliers, providing information to staff, management, customers or
shareholders, or requesting information from them, or promoting products
or services to the market
Crisis management Involves dealing with a situation from when it arises up to the point of recovery Module 5 – Part D
(p.412)
Critical Path Method This method identifies interdependencies between tasks to determine Module 1 – Part B
(CPM) which tasks can be done in parallel and which will require the completion (p.36)
of other tasks first
Critical thinking Involves evaluating which information is relevant, questioning information Module 1 – Part C
, where required, interpreting information and formulating a (p.46-47)
recommendation or decision based on logic without bias
Crowdsourcing Refers to harnessing contributions from participants on a digital platform to make Module 2 – Part A
a product (p.100-102)
Customer Focus Every aspect of the business’s operations considers its role in providing Module 1 – Part B
customer satisfaction and the business culture supports this (p.25-26)
Data visualisation The use of charts, tables and interactive dashboards to display, examine and Module 1 – Part A
explore data and analytics (p.21)
Debt financing Involves borrowing funds and then paying them back over time along with interest Module 2 – Part C
for the use of the money and it places a burden of repayment and interest on the (p.119-120)
entrepreneur
Development The ongoing process of learning and growth Module 3 – Part A
(p.167)
Digital Cooperative Cooperative digital platforms or networks that encompass all those cooperatively Module 2 – Part A
owned technologies that enable their constituent communities to create, (p.101)
contribute to and use their online network
Digital tokens Blockchain facilitates the digital representation and exchange of value, rights or Module 2 – Part E
assets using a variety of currencies (p.148)
Direct communication A common message is broadcast equally to all staff or to large groups which has Module 5 – Part B
the benefit of consistency but will tend to suffer from a lack of detail and (p.362)
relevance to different parts of the organisation
Distributed ledger The use of systems to allow multiple parties to conduct transactions transparently Module 2 – Part D
technology and record entries on a shared ledger that is trusted by all parties (p.135)
Diversity The differences in the demographics of the workforce which range across factors Module 3 – Part C
such as age, educational attainment, race, sex and ethnic background (p.214)
Electrolysis Relies on running an electric current through water to separate the hydrogen and Module 4 – Part A
oxygen that makes up water (p.257)
Emotional intelligence The ability to manage ourselves and our relationships effectively Module 1 – Part C
(EQ) (p.57-60)
Empathy The ability to understand the emotions of others and to use this Module 1 – Part A
understanding to better relate to them (p.10)
Employee value Refers to the balance of what employees give — time, effort, ideas, knowledge — Module 3 – Part A
proposition and take — tangible rewards, the substance of the work, the experience — in the (p.182)
employment arrangement
Empowerment The process through which leaders enable others to gain power and Module 1 – Part D
achieve influence within the organisation (p.79-80)
Energy audit A detailed analysis of how a business uses energy that results in a cost–benefit Module 4 – Part A
comparison of various initiatives the business can pursue to reduce energy (p.250)
consumption
Entrepreneurship A dynamic process of vision, change, and creation. It requires an application of Module 1 – Part A
energy and passion towards the creation and implementation of new ideas and (p.18)
creative solutions
Environmental cost Includes the cost of wasted resources (e.g. wasted raw materials or wasted Module 4 – Part C
capital) and costs incurred by measures specifically taken to protect the (p.304)
environment (e.g. the higher cost of switching to sustainably produced electricity)
Environmental Accountants are aiming to improve outcomes for all stakeholders, and the focus Module 4 – Part C
Management Accounting should be to obtain and exploit competitive advantages in an ethical and (p.303)
(EMA) sustainable manner
Equity crowdfunding Involves many investors taking a small equity stake in a business which enables Module 2 – Part C
entrepreneurs to receive finance without having to give up control, as would often (p.125)
be the case with funding by venture capitalists
Equity financing Money invested in the venture with no legal obligation for entrepreneurs to repay Module 2 – Part C
the principal or pay interest but requires sharing the ownership and profits with (p.119-120)
the funding source
Ethical dilemma Occurs when action must be taken but there is no clear ‘ethically right’ Module 1 – Part C
, option (p.61)
Exchange Offering to do something for someone in exchange for their doing Module 1 – Part C
something (p.52)
Expert power The ability to persuade or influence because of expertise Module 1 – Part
C, D (p.51,65)
Expertise location They allow staff to develop personal profiles, enhancing community development Module 3 – Part D
and the ability of people in the organisation to find others with areas of expertise (p.226)
Explicit expectations Reflected in, for example, legislation relating to pollution or employee health and Module 5 – Part A
safety (p.348)
Explicit knowledge Recorded knowledge (E.g. Notes or handbooks) Module 3 – Part D
(p.221,229)
eXtensible Business A standardised electronic format for the communication of financial and business Module 5 – Part B
Reporting Language (XBRL) information to stakeholders to meet regulatory reporting obligations (p.368)
External adaptation Involves reaching goals and dealing with outsiders and these issues involve the Module 3 – Part A
tasks to be accomplished, the methods used to achieve the goals and the methods (p.174)
of coping with success and failure
Fly-in, fly-out (FIFO) model Work arrangements involve the worker travelling to the workplace, then work for Module 3 – Part C
extended hours (often 12 hours a day) over an extended period of days (e.g. three (p.215)
weeks without a break) before travelling home again for a break (e.g. for a week)
Formal leadership The style exerted by individuals appointed to or elected to positions of Module 1 – Part D
formal authority in organisations (p.64)
Free offering Such business models usually evaluate customer data for advertising or Module 2 – Part A
personalised offers and thus open a pathway to revenues (E.g. Facebook) (p.105)
Freemium The business practice of giving away a service at no cost to the consumer as a way Module 2 – Part A
of establishing the foundation for future transactions which quickly establishes a (p.105-106)
large customer base
Full-range leadership Consists of 9 factors: 5 transformational, 3 transactional and 1 non- Module 1 – Part D
theory transactional factor. (p.67-69)
Gantt charts These provide a linear representation of the timing of each task in a Module 1 – Part B
project (p.36)
Geothermal energy Heat generated by the Earth but the challenge occurs when trying to manage the Module 4 – Part A
water and pressure levels used in the system to maintain land stability, and to (p.257)
manage emissions of gases and minerals contained in geothermal fluids
Gig economy Refers to the activities of that part of the labour force that engages in freelance Module 2 – Part A
work or short-term contracts rather than traditional full-time, part-time or casual (p.108-109)
work arrangements
Gig workers The segment of workers who take on short-term, often low-value, work under a Module 2 – Part A
contract arrangement rather than an employment arrangement (E.g. Uber) (p.104-105)
Global Reporting Initiative A multi-stakeholder, non-profit organisation with strategic partnerships with the Module 4 – Part C
(GRI) UN and the GRI Sustainability Reporting Standards are the most extensively used (p.301,312)
framework for sustainability reporting
Greenhouse gases (GHGs) Includes all gases that contribute to the greenhouse effect Module 4 – Part A
(p.248, 286)
Greenwashing The use of deception to convince stakeholders that an organisation is undertaking Module 5 – Part D
sustainable practices (E.g. Glencore – Project Caesar) (p.406-409)
Group cohesion The connectedness of the individuals within a group as highly cohesive groups Module 3 – Part A
exhibit higher levels of trust and more effective knowledge sharing than groups (p.171)
that lack cohesion and relates directly to how effective the team is
Maslow Hierarchy of Identified some needs as more important than others, with needs lower in the Module 3 – Part A
needs hierarchy being prerequisites for satisfying needs higher in the hierarchy (p.183)
High-context cultures Other cultures rely heavily on indirect and complex methods and are Module 1 – Part C
known as high-context cultures. In such cultures, feelings and thoughts are (p.55)
not explicitly expressed; instead, you have to ‘read between the lines’ and
interpret meaning from your general understanding (E.g. Asia)
, High-performance HRM Refers to policies and practices that promote superior employee performance and Module 3 – Part A
give the organisation a competitive edge (p.164)
Hot desking Communal desks and other facilities (e.g. power, phone and network connections) Module 3 – Part A
intended for use by workers who are not usually in the office. (p.165)
Hotelling When teleworkers do come into the central office to work Module 3 – Part C
(p.209)
Human capital A component of intellectual capital and refers to how the skills, training, Module 3 – Part A
education, experience and value of an organisation’s workforce contribute to the (p.170)
growth of the organisation
Human resource The strategic management of people in an organisation to contribute effectively Module 3 – Part A
management (HRM) towards the organisation’s strategic objectives and the employee’s needs (p.163)
Human sigma Enables accountants to produce data and, therefore, measures of employee– Module 3 – Part A
customer encounters which will assist the accountant in providing authoritative (p.172)
advice and assist management in making informed decisions that will affect
customer-facing employees.
Hydropower Power generated from the movement of falling or fast-flowing water to turn Module 4 – Part A
turbines, which produces electricity and is feasible only where the natural terrain (p.256)
and watercourses are suitable (E.g. Europe, NZ, Australia)
Hygiene factors Relate to the work context and involve things like adequate air-conditioning, low Module 3 – Part A
noise, privacy, freedom from harassment and access to the tools required to do (p.164)
the job
Idea generation The leader should apply creative problem-solving techniques or embrace Module 1 – Part D
intellectual stimulation as they look towards guiding others. They should (p.69)
also support new ideas, become involved with people who are developing
ideas and grant these people freedom to pursue their ideas.
Idea promotion This involves gathering support from the broader organisation for the Module 1 – Part D
creative enterprise ‘as a whole’ as well as the implementation of a specific (p.70)
idea or project. Idea promotion places the leader in a persuasive mode in
which ideas must be placed in the context of broader organisational
strategies if they are to succeed
Idea structuring Leaders should set broad output expectations and identify and integrate Module 1 – Part D
projects to be pursued but not involve day-to-day direction or close (p.69)
supervision of work. Idea structuring activities tend to be indirect and to
entail the creation of action or project frameworks that maximise worker
autonomy (E.g. It may be more useful to set a deadline than to show
someone how to meet this deadline)
Implicit terms The social contract can be gained from the writing and other communications of a Module 5 – Part A
society at a point in time, such as membership of environmental groups (p.348)
Impoverished leaders Display low concern for people and tasks turn most decisions over to the Module 1 – Part D
work group and show little interest in the work process or its results (p.79)
Inattentional blindness The phenomenon in which people only take in information that appears directly Module 5 – Part B
related and relevant to what they are doing (p.371)
Incremental innovation Involves improvements to something that already exists and can occur in any Module 2 – Part A
aspect of the business (E.g. Payment systems) (p.88-89)
Induction (onboarding) Refers to the process of integrating new employees into the business Module 3 – Part A
(p.167)
Informal investors Initial start-up funding comes from the 4Fs — friends, family, founders and other Module 2 – Part C
‘foolhardy investors’ (neighbours, work colleagues and even strangers) (p.124)
Informal leadership This approach is exerted by individuals who become influential because Module 1 – Part D
they have special skills that meets the needs and resources of others (p.65)
Infrastructure as a Service The simplest form of cloud computing as it provides the organisation with virtual Module 2 – Part A
(IaaS) machines, storage, servers and networking components, enough to enable the (p.103)
user to deploy their own software
Innovation The process of creating something new Module 2 – Part A
