Business GCSE

Business GCSE glossary

1154 key terms for Business GCSE, A to Z, each linked to the topic pages that use it.

Find a term in Business GCSE

1154 terms found. Open a term to try a short memory check.

A

Absenteeism: The rate of unauthorized absence from work by employees.AQA
Access to customers: Selling through retailers gives a producer access to potential customers who already shop there, and the retailer's scale affects the producer's reach.AQA
Access to finance and stakeholder confidence: A plan can secure finance because lenders and investors often expect a plan, and it can support a loan application.AQA
Accuracy and limitations of forecasting: Forecasts may be inaccurate, and a plan can become outdated if the market changes, making the financial forecasts unreliable.AQA
Adaptation and change: Because forces shift constantly, businesses must monitor them and adapt their products, costs and operations to survive.AQA
Adaptation and reaction: Adjusting elements of the mix, such as lowering price, updating the product, changing promotion or moving to a new distribution channel, in response to change.AQA
Adaptation to change: Revising objectives when internal or external circumstances change, for example moving from a profit objective to a survival objective and later to an…AQA
Adapting an existing idea: Modifying a current product or service to improve it or appeal to a different market segment.Pearson Edexcel
Adapting HR to external pressures: In the context of external influences, human resources must adapt to changes in the business environment.AQA
Adapting the marketing mix to external pressures: Competitor actions force marketing to adjust the marketing mix to maintain market share, and globalisation requires marketing to adapt products and campaigns…AQA
Adapting the mix over time: A business reviews the mix as customer needs, competitors and costs change, because an effective combination at one time may fail later.AQA
Added value: The difference between the selling price of a product and the cost of its bought-in materials, components and services.AQA, OCR, Pearson Edexcel
Adding value: A key role of enterprise achieved through convenience, branding, quality, design, or unique selling points.OCR, Pearson Edexcel
Adding value through transformation: Combining inputs such as labour, capital, materials and enterprise to produce outputs that customers are willing to buy.AQA
Additional sales: The extra revenue a business gains when good quality encourages customers to buy more, return, or recommend the business.AQA
Adjusting financial plans: Businesses must adjust budgets and cash flow forecasts accordingly in response to economic changes.AQA
Advertising: Paid, non-personal promotion that informs or persuades customers about a product, sitting within the promotion element of the marketing mix.AQA
Advertising aims: To increase sales, build brand recognition and differentiate from competitors.AQA
Aesthetics: The visual and sensory appeal of a product to the consumer, including its look, feel, and style.Pearson Edexcel
Affordability and demand: A customer's income shapes what they can afford, how often they buy, and which brands or product ranges they consider.AQA
After-sales service: The support provided to a customer after they have purchased a product, such as warranties or technical help.OCR
Agglomeration: When businesses in similar industries locate close together.AQA
Aim: The long-term overall purpose of a business, the broad direction it wants to move in, such as survival, growth or providing a service to the community.AQA, OCR
Analysing supplier choice in context: Breaking the choice of supplier into factors and showing how each affects the given business, using context from the case.AQA
Application of business concepts to context: Applying each influence to a named business context if one is given, so the answer moves from general theory to specific consequences.AQA
Application to context: Linking each advantage or disadvantage to the specific business situation, such as its type, amount needed, duration and existing financial position, rather…AQA
Applied judgement in context: Weighing the benefit against the drawback for a specific named business before reaching a supported judgement.AQA
Appreciation: A rise in the value of the pound, which makes imports cheaper for a UK business but makes its exports dearer abroad.AQA
Appropriateness: Whether a production method suits a product and market, depending on volume, customisation, cost, lead time and available technology.AQA
As Described: Goods supplied must match any description given to them, or any models or samples shown.OCR
Asset and liability classification: The statement of financial position has non-current assets, current assets, current liabilities and non-current liabilities as its main components.AQA
Assets: Resources the business controls or owns that hold value or will bring future benefit, such as inventory, machinery, vehicles, cash at bank and trade…AQA
Authority and accountability: Authority is the right to make decisions, while accountability means responsibility can be traced if something goes wrong.AQA
Autocratic management: A style that keeps decisions with managers and centralises decisions, which can be quick but may reduce employee input.AQA
Automation: Using technology in place of labour, requiring high initial investment but often lowering long-term unit costs through improved efficiency.OCR, Pearson Edexcel
Average annual profit: Total profit over the project's life divided by the number of years of the project's life.AQA
Average cost: The cost per unit, which falls as fixed costs are spread over more units when output rises.AQA
Average customer lifetime value: A measure that improves when increased spend makes each customer worth more.AQA
Average rate of return: Evaluates investments by comparing average annual profit to the initial cost: (average annual profit / initial investment) × 100.AQA, Pearson Edexcel
Average Rate of Return (ARR): A method of evaluating investment appraisal that calculates the average annual profit of an investment as a percentage of its initial cost.AQA, OCR
Average unit cost: Total cost divided by output, written as AUC = total cost ÷ quantity produced.AQA

B

Balancing: Maintaining a mix of products at different stages of the product life cycle, so that mature products generate cash while newer products are developed.AQA
Balancing sales volume against profit margin: Weighing the boost to sales volume and new customers against reduced profit per unit from heavy discounting.AQA
Bank loans: A lump sum for long-term investments that requires regular repayments with interest and often demands collateral.Pearson Edexcel
Barriers to effective communication: Factors that prevent messages from being accurately received or understood, such as technical faults, complex jargon, language differences, and poor listening…Pearson Edexcel
Barriers to entry and exit: A structural feature describing the ease of entry to and exit from a market.AQA
Batch Production: Making groups of identical items, such as a bakery producing 50 chocolate muffins before switching to blueberry, balancing variety with lower costs.AQA, Eduqas, OCR, Pearson Edexcel
Benefits of e-commerce and m-commerce: A wider market beyond a local area, 24/7 trading, lower premises costs, and data for personalisation.AQA
Benefits of effective supply chain management: Lower stock-holding costs, fewer delays, better cash flow, consistent quality and happier customers.AQA
Best price: The amount the business pays per unit or per contract, which negotiation, bulk buying or payment terms can improve.AQA
Best value: What the business receives for its money, including quality, reliability, delivery speed and after-sales support, not price alone.AQA
Boston Matrix: A tool plotting products by market growth rate and relative market share, producing four categories.AQA
Brand and market positioning: Whether a strategy fits the brand and the target market, which affects its effectiveness.AQA
Brand awareness: Something a competition can raise, alongside increasing engagement and generating customer data.AQA, Pearson Edexcel
Brand awareness and image: What sponsorship can build because it communicates with potential customers, with its value depending on audience fit, reach, reputation and whether the…AQA
Brand awareness and reach: Repeated local exposure to a wide passing audience, which can build brand awareness and support a national campaign when used across many sites.AQA
Brand consistency: A coordinated mix reinforces one message and builds a clear brand image, while inconsistency confuses buyers.AQA
Brand identity: How the business wants to be seen, which is distinct from the perception of a brand held by customers.AQA
Brand image: The overall perception customers have of a brand, shaped by their experiences, advertising, packaging, price and word of mouth.AQA
Brand image and differentiation: Refreshing the brand image through changes such as a new logo or graphic design, so the product appeals to the target market.AQA
Brand reputation: Protected by consistent quality and affected by quality in procurement alongside customer satisfaction, waste levels and production efficiency.AQA
Brand reputation and repeat custom: Poor design, such as broken links, hidden contact details or slow pages, drives customers to competitors, so the website directly affects satisfaction, repeat…AQA
Branding: A method of adding value by building strong branding that customers trust.Pearson Edexcel
Break-even: The level of output at which total revenue equals total costs, so the business makes neither profit nor loss.AQA
Break-even analysis: Calculates the output at which total revenue equals total costs, giving zero profit.AQA
Break-even chart: A chart where the horizontal axis shows output and the vertical axis shows money, with total revenue and total cost lines.AQA
Break-even level of output: The level of output where the total revenue line crosses the total cost line, and at this point profit is zero.AQA, Pearson Edexcel
Break-even output: The quantity of units a business must sell for total revenue to equal total costs, making neither profit nor loss.AQA
Break-Even Point: The level of output where total revenue equals total costs.AQA, Eduqas, OCR
Breaking bulk: Dividing large consignments into smaller, more manageable orders for customers.AQA
Breaking bulk and convenience: Retailers hold stock in convenient locations, offer choice across many brands and let customers buy single items rather than bulk packs.AQA
Broadening: Adding products, perhaps to spread risk so that weak sales in one line are offset by strong sales in another, or to reach new segments.AQA
Budget: One factor that selection of the promotion mix depends on, alongside target market, product type, stage in product life cycle, competitor actions and…AQA, OCR
Budget and resource constraints: A method must be affordable and manageable for the business, as the choice depends on budget.AQA
Budgeting and cash-flow management: Preparing budgets, monitoring actual figures against them and controlling cash flow.AQA
Buffer stock: Stock held so that production does not stop when a delivery is late; reliable suppliers reduce the need for it.AQA, Pearson Edexcel
Building and protecting brand reputation: Shaping what people think of the brand through actions such as press releases, media coverage, sponsorship, charity links and events.AQA
Business: An organisation that exists to produce goods or supply services to satisfy customer needs and wants.AQA
Business aim: A broad, long-term overarching goal that a business wants to achieve, such as becoming the market leader or surviving the first year of trading.AQA, Pearson Edexcel
Business aims: Aims are general intentions, while objectives are specific targets used for judging success because they are measurable.AQA
Business benefits: Include lower energy and waste bills, stronger brand reputation, loyal customers, motivated staff and fewer legal penalties.AQA
Business context: Linking the choice of method to the business, since the best method depends on the business, such as a small café or a hospital.AQA
Business context and contingency: The circumstances a business faces, including size, market conditions and ownership, which help explain why no single objective fits all businesses.AQA
Business context and legal form: Judging suitability against the specific context, including the legal form or size of the business.AQA
Business costs: Include buying greener machinery, retraining staff, slower or dearer sourcing and higher prices that may deter some buyers.AQA
Business costs and benefits: Training, extra staff and support systems use resources and may reduce short-term profit, so the expense of training or the difficulty of maintaining…AQA
Business costs and pricing: Paying the legal rate raises costs, especially for labour-intensive firms, so a business may raise prices, cut hours or invest in labour-saving equipment.AQA
Business decision making: Must take stakeholders into account because stakeholders can influence business behaviour and their interests may conflict.AQA
Business ethics: Doing what is morally right, such as paying fair wages, avoiding child labour, and ensuring safe working conditions in the supply chain.AQA, Pearson Edexcel
Business ethics and reputation: Disposal affects ethical standing, and a business seen to dispose of waste irresponsibly can suffer damage to brand image.AQA
Business evolution and growth: The process by which a business changes as its size, ownership, market position and stakeholder pressures change.AQA
Business failure: The outcome of insolvency, which can occur even if the business is profitable.Pearson Edexcel
Business functions: Operations (or production), marketing, finance and human resources are the basic functions that turn inputs into outputs customers will pay for.AQA
Business growth: Expansion that makes maintaining consistent quality harder, as larger output can stretch staff, equipment and management control.AQA, Pearson Edexcel
Business growth and structure: A start-up may have one person performing all functions, while a large multinational separates them into specialist departments.AQA
Business impact: The positive or negative effect on a business, affecting sales volume, revenue, profit margin, cash flow and competitiveness.AQA
Business investment: Spending by firms on stock or equipment, which they cut when higher interest rates make overdrafts and loans cost more.AQA
Business investment decisions: Rising rates may force a firm to delay investment, cut stock or raise prices, while falling rates free cash for expansion.AQA
Business location: Locating a large store or warehouse out of town can add vehicles to local roads.AQA
Business objective: A specific, measurable, and time-bound target set to help achieve a broader aim.AQA, Pearson Edexcel
Business objectives: The aims a firm considers, alongside costs and market position, when evaluating an appropriate response to competitor actions.AQA
Business operations: The functional area that produces the goods or delivers the services a business sells, covering production methods, quality, stock control, suppliers,…AQA, Pearson Edexcel
Business opportunity: Meeting an unmet customer need or gap in the market, such as spotting unmet demand for a local repair shop.AQA
Business ownership: The structure of a business, such as a public limited company, which a growing business might change to.Pearson Edexcel
Business performance: Financial data, such as profit margins and cash flow forecasts, is vital for understanding it, allowing profitability to be assessed and compared against…Pearson Edexcel
Business plan: A vital document outlining how an enterprise will operate, setting out the core business idea and its specific aims and objectives.AQA, OCR, Pearson Edexcel
Business Rates: A tax on non-domestic properties, calculated based on the property's rental value.OCR
Business reputation: A stronger reputation arising from positive word of mouth, while poor engagement such as ignoring complaints damages trust.AQA
Business reputation and stakeholder trust: A strong safety record builds reputation with customers, investors and insurers.AQA
Business response: How firms may respond to global warming, such as reducing emissions, using renewable energy or developing sustainable products.AQA
Business response and adaptation: A business may respond to stakeholder pressure by changing a product, pay offer or location.AQA
Business size and scale: Businesses come in different types based on size and scale: start-ups, SMEs, large, local, national, international and multinational.AQA
Business strategy: The most effective way to compete, chosen by identifying customer needs to avoid wasting resources on features customers do not want.AQA
Business survival and growth: Adapting may mean changing products, prices, promotion, processes or the skills of staff, and one that responds can gain an advantage.AQA
Business sustainability and survival: Business survival, especially for start-ups, is a fundamental measure of success in the early years, and environmental sustainability is an increasingly…AQA
Buyer and seller power: A structural feature describing the balance of power between buyers and sellers in a market.AQA

C

CAD (Computer-Aided Design): Using computer software to draw, design, and test 2D and 3D models of products before physical manufacturing begins.OCR
Calculating and comparing ratios and totals: Calculating a meaningful measure using the correct figures and units, or comparing figures across two years or between businesses to identify a trend or…AQA
Calculation skills: Calculating with the data, such as totals, differences, percentage change, averages or a missing value, showing the working.AQA
Capital: The man-made resources used in production, such as machinery, tools, vehicles, buildings and money invested in the business.AQA
Carbon Footprint: The total amount of greenhouse gases produced directly and indirectly by a business.OCR
Cash: The money a business can access immediately to pay wages, suppliers, rent, tax and loan repayments.AQA, OCR, Pearson Edexcel
Cash cow: A mature product in a low-growth market with high relative market share that generates steady cash which can fund other lines.AQA
Cash Flow: A record of actual receipts and payments.AQA, OCR
Cash flow and profit: Falling rates lower repayments, freeing cash for expansion or improving competitiveness, while rising rates reduce retained profit.AQA
Cash Flow Forecast: Predicts cash inflows and outflows month by month, showing opening balance, net cash flow and closing balance.AQA, Eduqas, OCR, Pearson Edexcel
Cash flow management: Acting when a forecast shows negative net cash flow or a negative closing balance, using solutions such as re-scheduling payments, overdrafts, reducing cash…AQA
Cash flow problems: Outflows outpace inflows, so the business may miss payments and need costly short-term borrowing.AQA
Cash inflows and outflows: Cash inflows are receipts such as sales revenue, loans or capital, while cash outflows are payments such as wages, rent and supplier bills.AQA
Cash shortfall: A negative closing balance, for which you identify when it occurs, how large it is and possible causes.AQA
Cause and effect reasoning in business: Accurate chains of reasoning that link a named influence to a specific functional consequence, using a because link to show the effect.AQA
Causes and consequences of financial change: Suggesting causes such as higher raw material costs, discounting or tighter cost control, and explaining what the change means for the business.AQA
Cell production: Grouping workers into teams making a whole unit in a sequence, improving flow, teamwork and accountability for quality.AQA
Centralisation: Keeps decision-making authority with a small group at the top of the business, often head office.AQA
Centralised structure: A structure that keeps decision-making authority at the top, such as head office, ensuring consistency and uniform policies.Pearson Edexcel
Centralised structures: Structures that concentrate decisions at the top, so communication is mainly downward.AQA
Chain of Command: The line of authority from top to bottom through which instructions are passed.AQA, Eduqas, OCR
Change and adaptation: Businesses operate in a constantly changing environment, so they must adapt to survive and grow.AQA
Changes in demand over time: Demand for a product or service changes over time, from low initial sales to peak maturity and eventual fall.AQA
Changing an established image: Altering an existing perception, for example a budget supermarket running quality-focused advertising to move customers away from seeing it as cheap and basic.AQA
Changing technology and business operations: Faster broadband, cloud storage, mobile devices, e-commerce, social media and data analytics become cheaper and more widespread, and automation and data…AQA
Channel of distribution: The route a product takes from producer to final customer, with options including direct selling, retailer, wholesaler plus retailer, and online or mixed…AQA
Channels of distribution: Methods that move a product from producer to customer, such as retailer, wholesaler, direct selling, e-commerce or m-commerce.AQA
Choosing promotion to fit the target market: Choosing sites where the target market travels, running the poster for a set period, then comparing sales or enquiries before and after to judge effectiveness.AQA
Classification of assets and liabilities: Non-current assets and liabilities last beyond a year, while current ones are short term.AQA
Classification of business activity: Business activity is often classified into three sectors, and some businesses may operate in more than one sector.AQA
Clear links: Each plan states what other functions must do and how progress is reported back, so the whole business moves towards the same objective.AQA
Clear links throughout: Each functional plan supports the overall objective and the plans are consistent with one another.AQA
Closed questions: Questions with fixed responses, such as yes/no or rating scales, that collect quantitative data.AQA
Closing balance: Opening balance plus net cash flow, which becomes next month's opening balance.AQA, Pearson Edexcel
Cloud Computing: The delivery of computing services (servers, storage, databases, software) over the internet.AQA
Coherence of the marketing mix: Keeping all four elements consistent, because a reaction in one element usually requires matching changes in the others.AQA
Collateral: An asset (like property) that a borrower offers to a lender to secure a loan.OCR
Collateral / Security: An asset (like a building) that a bank can claim if a loan is not repaid.AQA
Commission: A percentage of sales value, linking pay directly to selling performance; it can be high-risk because income falls when sales fall.AQA
Communication: The process of transmitting information and understanding from one person or group to another.OCR
Communication and awareness: Communicating with customers to raise awareness, create interest, build desire and prompt action.AQA
Communication and coordination: What matters because each function depends on the others, so plans must be consistent and reviewed together.AQA
Communication and decision-making: Messages passing through more levels can slow decisions and distort messages in a tall structure, while a flat structure can allow quicker decisions and more…AQA
Communication and feedback: Friendly communication and listening to feedback, including responsive social media and after-sales contact, which build engagement.AQA
Communication and managing uncertainty: Managers communicating the reasons for change clearly and involving employees, because sudden changes can reduce motivation and cause uncertainty.AQA
Communication channels: A well-designed site can answer common questions through FAQs, offer live chat or a contact form, and let customers track orders.AQA
Communication with customers: The role of promotion within the marketing mix, informing customers about product features, price changes or where to buy.AQA
Competition: A factor that affects location because a business may avoid areas with many rivals to reduce direct competition, or locate near competitors to benefit from…AQA
Competitive advantage: Gained when a USP helps a business differentiate, build customer loyalty and reduce price competition, though it can weaken if competitors imitate it or…AQA, OCR, Pearson Edexcel
Competitive advantage and business survival: Failing to identify needs risks wasted resources, unsold stock, poor reviews and customers switching to a competitor whose offer fits better.AQA
Competitive and brand positioning: Judging when a reduction is suitable by considering costs, brand image, competitors and objectives, including drawbacks such as damaged brand image and…AQA
Competitive benchmarking: Comparing performance against competitors, where a figure may look weak if rivals achieve more.AQA
Competitive environment: The surroundings of rivals that a business must respond to, for example when a rival lowers prices a firm might increase promotion or enhance product features…AQA, Pearson Edexcel
Competitive position: How strong a business's position is compared with rivals, judged from figures such as market size and market share.AQA
Competitive positioning: A premium price signals quality and must match a high-quality product, while a low price suits a mass-market budget item.AQA
Competitive pressure: More competition from foreign rivals, which can reduce UK sales, put downward pressure on prices and force businesses to cut costs or improve their offer.AQA
Competitive pricing: In the 4Ps, price often becomes more competitive during maturity, for example through price cuts, promotional pricing or value positioning to defend volume.AQA
Competitive response and scale economies: Rising sales can improve cash flow and allow scale economies, lowering unit cost, but growth also attracts competitors, so the business must defend its…AQA
Competitiveness: Higher efficiency usually lowers unit costs and can improve competitiveness, but it may require investment, affect employee motivation or reduce flexibility.AQA
Competitiveness and profitability: Lower unit costs and better service can help the business win and keep customers, while lower average cost per unit can raise profit.AQA
Competitor actions: The marketing decisions and strategies of rival businesses that can affect demand for a firm's own products.AQA
Competitor analysis: Market research collects and analyses information about customers, competitors and the market, including what competitors offer.AQA
Competitor information: Data about rivals that includes their pricing, product features, promotion and distribution.AQA
Complaint handling: Responding quickly to complaints, which is itself part of good customer service and can sometimes make a dissatisfied customer loyal again.AQA
Compliance: The act of obeying the law and following regulations.AQA
Compliance costs: Legislation can raise business costs, for example new equipment, safety measures, insurance or legal advice.AQA
Confidence and debt levels: How much debt households and firms already hold and how confident they are, which determine the size of the effect of interest rate changes.AQA
Conflict and agreements: Disagreements can occur, so a written agreement should cover profit shares, roles, and dispute resolution to reduce conflict.AQA
Conflict between stakeholders: Arises because different stakeholders often have conflicting objectives, so businesses must consider them when making decisions.AQA
Conflict of interest: Arises because each group holds distinct and often conflicting objectives, so a decision can benefit one stakeholder but harm another.Pearson Edexcel
Conflicting objectives: Objectives that often conflict, so businesses must balance them when making decisions.AQA
Consequences for operations and costs: Explaining the effect of each factor for that business, for example poor reliability causes lost output and late customer orders.AQA
Consequences of failure: Failure to follow legislation can lead to fines, compensation claims, legal action, damaged reputation and lost customers.AQA
Consistency and coordination: The elements are integrated when they support one another and send a consistent message to the target market.AQA
Consistency and customer expectations: Every unit or service meets the same specification, so customers receive what they expect each time.AQA
Consistency and positioning: The elements must be consistent with each other and with the product's positioning, because conflicting signals are sent when they are not.AQA
Consistency of the marketing mix: Decisions on design, quality, price, availability and promotion fitting together, because a good product at the wrong price or in the wrong place may still…AQA
Consumer: The person who ultimately uses or consumes the product or service.AQA
Consumer confidence: How secure people feel, which affects spending: when confidence drops, spending falls as households save or repay debt.AQA
Consumer decision making: Changes because environmental factors join price, quality and convenience in the choice.AQA
Consumer demand: The amount of goods consumers buy, which falls when higher interest rates reduce disposable income and spending.AQA
Consumer Income: The total amount of money earned by individuals or households.OCR
Consumer income and demand: When employment rises, more people earn income, increasing consumer spending and demand.AQA
Consumer law: Protects buyers of goods and services, including the Consumer Rights Act 2015.AQA
Consumer protection: Consumer law requires goods to be of satisfactory quality, fit for purpose, and as described, granting consumers the right to refunds or repairs if these…Pearson Edexcel
Consumer Rights Act 2015: The main piece of UK legislation protecting consumers when buying goods, services, and digital content.Eduqas, OCR
Consumer spending: The total amount households spend on goods and services, which depends on income, employment, confidence and interest rates.AQA
Consumer trends: Changes in what consumers want drive new ideas, as when society becomes more health-conscious and businesses develop plant-based foods or fitness trackers.Pearson Edexcel
Contextual judgement: Weighing the business's supplier reliability, cash position, demand predictability and product perishability, then judging whether JIT suits it.AQA
Contextual justification: Justify each choice by linking it to the context, and consider trade-offs.AQA
Continuous improvement: A culture, often called kaizen, where small incremental gains are made all the time.AQA
Continuous Improvement (Kaizen): An ongoing effort to improve products, services, or processes by making small, incremental changes.AQA
Contract of employment: A legally binding agreement between an employer and an employee that sets out rights and responsibilities, including job title, pay, hours, holiday…AQA, OCR
Contracts of employment: These set out pay, hours, duties, notice and other key terms for both employer and employee.AQA
Contribution: Selling price minus variable cost per unit.OCR
Contribution per unit: The selling price per unit minus the variable cost per unit, which is the denominator in the break-even formula.AQA
Control measure: A reasonable step taken by employers to control risks, such as guarding machinery or providing protective equipment.AQA
Convenience and extended availability for customers: Websites and apps let customers browse, order and track purchases at any time, widening opening hours and speeding up responses.AQA
Coordination: Functions must coordinate their activities to achieve objectives, because a change in one function can cause problems elsewhere.AQA
Coordination across a business: Objectives help coordinate departments, because everyone can work towards the same measurable goal.AQA
Coordination across business functions: Linking market research, design, production, finance and distribution so decisions are coordinated rather than isolated.AQA
Coordination issues: More departments, sites and products make it harder to schedule work, control quality and avoid duplication.AQA
Coordination of business functions: Objectives help coordinate different functions so that effort is focused on shared outcomes, with both supporting the same objective.AQA
Coordination of the four Ps: The four elements must be consistent, because a luxury product sold in discount shops or a budget product advertised as exclusive confuses customers and…AQA
Coordination towards objectives: The way a structure coordinates effort and supports communication so that business objectives are achieved.AQA
Corporate decision-making: The process influenced by the relative power of different stakeholders in a given business scenario.Pearson Edexcel
Corrective action: Responding by investigating complaints, improving staff training, speeding up responses and monitoring repeat purchases, so that lost customers are replaced…AQA
Cost: The financial expense of manufacturing the product, which must be low enough to allow for a profitable selling price.Pearson Edexcel
Cost and benefit: Weighing the money and time that design improvements cost against benefits such as higher demand, a higher price, less waste or a stronger brand image.AQA
Cost and control: The implications of each method, for example delivery costs, retailer margins, stockholding or brand control, which must be weighed.AQA
Cost and delegation: More managers in a tall structure raise labour costs, while fewer managers in a flat structure reduce cost but require managers to delegate more and rely on…AQA
Cost and efficiency: Lower advertising cost and faster induction are benefits of internal recruitment, while higher cost and longer induction are drawbacks of external recruitment.AQA
Cost and impact of promotional media: Television offers sight, sound and movement and strong impact, but airtime is expensive and production costs are high.AQA
Cost and measurability: Costs vary with location, size and duration, prime sites are expensive, and unlike the internet they cannot be clicked or easily measured.AQA
Cost and reach of promotional media: Weighing the expense of magazine advertising, including cost per thousand readers, against how many of the right customers it reaches.AQA
Cost and revenue consequences: An ethical action can raise costs, for example paying more per unit, while possibly gaining sales from ethically minded customers.AQA
Cost and speed of research: Internet research is often quick and low-cost, but some industry reports and databases may require payment.AQA
Cost and targeting: Advantages include relatively low cost compared with television, while disadvantages include limited targeting by demographics.AQA
Cost and time implications: Internal recruitment is cheaper and faster but limits new ideas, while external recruitment brings fresh talent but costs more and takes longer.AQA
Cost and timescale trade-offs: Choosing a method depends on budget, timescale, the accuracy needed and the nature of the decision.AQA
Cost classification: Deciding whether each cost is variable or fixed by how it responds to changes in output.AQA
Cost control: Repeat business may lower the cost of attracting new customers, reducing the need to spend on attracting replacement customers.AQA, Pearson Edexcel
Cost control and efficiency: Reducing material costs or transport weight, for example by switching to lighter packaging, to lower costs.AQA
Cost control and productivity: Accidents fall, so sick pay, replacement labour and repair costs drop, and staff feel valued, raising motivation, retention and productivity.AQA
Cost control and working capital: Holding minimal stock reduces the capital tied up in inventory and cuts storage, insurance and waste costs.AQA
Cost control through fewer complaints and returns: Staff face fewer complaints and returns, which cuts the cost of refunds, replacements and rework, and raises morale and productivity.AQA
Cost control through lower stock and less waste: Value appears as lower stock-holding costs and less waste from spoiled or obsolete stock.AQA
Cost effectiveness: Effectiveness is judged by sales, enquiries, website visits or brand recall, and poor advertising wastes money and may annoy customers.AQA
Cost efficiency and staff workload: Answering common questions and letting customers track orders reduces frustration and staff workload.AQA
Cost of finance: Interest rates are the price of borrowed money, so when they fluctuate, the cost of overdrafts and loans changes.AQA
Cost of replacement customers: The extra marketing spending a business must make to attract replacements when lost customers have to be replaced.AQA
Cost of sales: Direct variable costs such as raw materials and direct labour.AQA, Pearson Edexcel
Cost per contact: A measure managers compare, along with expected return, before committing funds.AQA
Cost recovery and quality investment: Higher prices can cover the extra costs of better materials, staff training, inspection or service.AQA
Cost versus benefit of motivation methods: Weighing what a method costs against its likely effect on retention and productivity, so a small firm may prefer praise and job rotation because these cost…AQA
Cost versus control: Balancing the cost of finance, such as interest, fees or dividends, against the impact on ownership and control.AQA
Cost versus long-term benefit: Choices that can raise short-term costs but may lower long-run bills, meet customer expectations and protect reputation.AQA
Cost versus long-term saving: Weighing high upfront investment against lower long-run energy bills when deciding whether an environmental measure is worthwhile.AQA
Cost versus quality trade-off: The benefits of reduced costs must be balanced against the quality of service.AQA
Cost-effectiveness of promotional spending: Weighing the promotional spend against the extra sales revenue it generates, since promotion is only worthwhile if it adds more revenue than it costs.AQA
Cost-plus: Setting price by calculating unit cost and adding a mark-up for profit.AQA
Cost-plus pricing: Adding a percentage mark-up to unit cost so that costs are covered and a profit margin is built in.AQA
Cost-plus pricing and the effect of growth on average cost: Cost-plus pricing adds a percentage mark-up to the unit cost, and as output grows fixed costs are spread over more units so average cost tends to fall.AQA
Cost, efficiency and automation: Cloud systems let staff work remotely and cut premises costs, while automation and data analysis speed up stock control and decision making.AQA
Cost, reach and conversion: Criteria for judging whether the channel is worthwhile, since it can reach many customers at a relatively low cost per contact and conversion rates should be…AQA
Cost, reach and targeting: Reaching a wide audience often at lower cost than television or print, targeting specific groups and measuring responses such as clicks and sales.AQA
Costs: The payments made to produce and sell output, split into fixed costs and variable costs, which together give total costs.AQA
Costs and benefits: Benefits include fewer errors, less waste, higher customer satisfaction and stronger motivation, but training takes time and money and may not guarantee…AQA
Costs and benefits of compliance: Compliance builds customer trust and avoids legal penalties, but may increase costs of quality control and staff training.AQA
Costs and benefits of promotion: Sampling can raise awareness, encourage trial and generate word-of-mouth, but carries costs such as producing the samples, staffing a stand and any lost…AQA
Costs and benefits of research: Cheaper and quicker access to existing information, but data may be biased by editorial views and can quickly become out of date.AQA
Costs and pricing: Costs set a floor because a price below unit cost makes a loss.AQA
Costs and revenues: The expenses a business incurs and the income it receives, which location factors can affect.AQA
Costs of online trading: Extra costs such as delivery, secure payment fees, website upkeep and returns handling that wider markets bring.AQA
Costs versus benefits of marketing decisions: Weighing the extra revenue and contribution generated by a strategy against the cost of implementing it.AQA
Costs versus reputation benefits: Higher costs and lower short-term profit weighed against stronger brand reputation, customer loyalty and a possible price premium.AQA
Creating a new image: Building a perception of the product where none clearly exists, for example a new soft drink using bright, youthful advertising to position itself as fun and…AQA
Creating sales: Generating demand from customers who were not previously buying the product, such as a new business launching with an advertising campaign.AQA
CRM (Customer Relationship Management): Software systems used to manage and analyze customer interactions and data.AQA
Crowdfunding: Raising small amounts of money from a large number of people, usually online.OCR
Customer: The person or organisation that purchases a product or service.AQA
Customer and market shifts: New products, new markets and new ways of working appear over time as customer attitudes shift, so owners review their plans regularly.AQA
Customer awareness: The state of customers being aware of a product, which promotion is used to build during introduction.AQA
Customer awareness and persuasion: Making potential customers aware that a product exists, especially for a new product or a new market, and persuading them to choose its brand rather than a…AQA
Customer behaviour and brand image: Heavy discounting may train customers to wait for offers and weaken the brand's premium image if used too often.AQA
Customer choice: Customers seeing a clear reason to choose one business's offering rather than another's.AQA
Customer complaint rate: The number of complaints counted per 1,000 customers.AQA
Customer consent and regulation: Rules on unsolicited calls restrict telesales, so businesses must follow the rules and respect customer preferences.AQA
Customer convenience and accessibility: An online presence lets customers find information, contact the firm and buy at any time, and a well-designed site is easy to navigate, loads quickly and…AQA
Customer convenience and reach: The needs of the target market, such as convenience, speed of delivery, personal service or wide product choice, which affect the suitability of a method.AQA
Customer demand: Customers' willingness and ability to pay, often linked to income and the product's perceived value, shapes demand.AQA
Customer engagement: Creating a positive experience for the customer, building an ongoing, positive relationship so they feel valued and want to return.AQA, Pearson Edexcel
Customer expectations: What customers anticipate in terms of quality in the production of goods and the provision of services.AQA
Customer expectations and after-sales service: Slow dispatch, unclear delivery charges, difficult returns or poor after-sales support quickly create complaints and negative reviews.AQA
Customer expectations and satisfaction: Good service means consistently delivering what a customer expects, so that they feel valued and are willing to return.AQA
Customer feedback: Comments from customers that a business responds to; positive feedback can be used for marketing, while negative feedback highlights areas for improvement.Pearson Edexcel
Customer focus: Identifying what customers want and shaping the offer so it satisfies them profitably.AQA
Customer identification and understanding: Identifying who buys, why they buy and what they value, which lets a business target its offer so sales growth is planned rather than accidental.AQA
Customer information: Data about customers that includes their needs, wants, preferences, buying habits and satisfaction.AQA
Customer loyalty: The tendency of buyers to return to the same business and to resist switching to a rival.AQA
Customer loyalty and repeat purchase: A satisfied customer trusts the business and is more likely to return, giving repeat purchases and positive reviews.AQA
Customer loyalty and reputation: Poor service affects costs, reputation and customer loyalty, while variability can lead to customer dissatisfaction, lost repeat business and reputational…AQA
Customer loyalty and retention: Encouraging customers who feel involved and appreciated to buy again, recommend the business and forgive minor problems.AQA
Customer needs: What a product or service must meet more effectively than rivals, such as being easier to use, more reliable or more attractive.AQA, Pearson Edexcel
Customer needs and business objectives: Explain how the choice meets customer needs and the business aim.AQA
Customer needs and market research: Research into customer needs, competitors and costs shapes what each element of the mix should be.AQA
Customer needs and wants: What a business exists to satisfy by providing goods or services, creating value for its owners and stakeholders.AQA
Customer persuasion: Changing customer behaviour and encouraging purchase, rather than merely providing information.AQA
Customer research and evidence-based decisions: Gathering information about customers, for example through surveys, interviews, sales data or observation, so decisions rest on evidence rather than assumption.AQA
Customer retention: Maintaining customer relationships and encouraging repeat business, which e-newsletters foster through direct, personalised updates to existing customers.AQA, OCR, Pearson Edexcel
Customer rights: Consumer law gives customers legal rights when goods or services are faulty, not as described or not fit for purpose.AQA
Customer satisfaction: The gap between what a customer expects and what they actually experience, so that a satisfied customer feels the purchase met their needs.AQA
Customer satisfaction and loyalty: Good customer service can increase customer satisfaction, loyalty and repeat purchases, and can improve a business's reputation and lead to positive…AQA
Customer satisfaction and reputation: Poor supplier quality can lead to production delays, faulty products, unhappy customers and lost repeat sales.AQA
Customer segmentation: Grouping customers by a variable such as income, which groups customers by how much money they have available to spend.AQA
Customer Service: The assistance and advice provided by a company to those people who buy or use its products or services.AQA, OCR
Customer service and business reputation: Motivated employees may give better customer service, reducing complaints and raising repeat custom.AQA
Customer service and staff training: Provision of services depends on staff training, consistent procedures, customer care, and effective complaint handling.AQA
Customer targeting: Matching a promotional method to the audience, such as using social media for younger customers.AQA
Customer value: What buyers value, such as price, quality, convenience or service, revealed by understanding customers.AQA
Customisation: Products are highly customised and often made to a customer's specific requirements, so each unit is unique.AQA
Customisation versus standardisation: Job production suits unique products where customer requirements vary, whereas flow production suits standardised products with stable demand.AQA

D

Data interpretation: Understanding what the numbers represent in a real-world context, such as whether a numerical change is a positive or negative outcome.AQA, Pearson Edexcel
Data quality and relevance: Secondary data may be out of date, not specific to the business or collected for a different purpose, while primary data is tailored and up to date.AQA
Decentralisation: Passes authority to regional, branch or team managers.AQA
Decentralised structure: A structure that delegates decision-making authority to lower-level local managers, allowing rapid responses to local market changes.Pearson Edexcel
Decentralised structures: Structures that give local managers authority, so lateral and upward communication grows.AQA
Decision making: Quantitative data supports objective business decisions, such as identifying areas to reduce costs or justifying expansion, and informs strategic decisions.AQA, Pearson Edexcel
Decision making across different business types: Linking an interpreted finding to an appropriate decision, such as changing price, product, promotion or location, and adapting it to the business's size,…AQA
Decision making and judgement: Both sides should be weighed, the financial benefit of reduced costs against the effect on quality of service, to reach a supported judgement about whether…AQA
Decline: The stage in the product life cycle when sales and profits begin to fall persistently, following maturity.AQA
Declining readership and effectiveness: Disadvantages include declining readership and the fact that adverts may be overlooked.AQA
Defect rate: The percentage of units failing inspection.AQA
Degree of competition: A measure of how many rivals a business faces and how strongly they compete.AQA
Delayering: Removing levels of hierarchy to reduce costs and speed up communication.AQA, OCR
Delegation: Passing authority to subordinates to complete tasks, which can motivate staff.AQA, OCR
Delegation and authority: Passing authority to subordinates, which can motivate staff, while ultimate responsibility remains with the manager.AQA
Delivery and logistics: Consolidating deliveries into fewer fuller loads and routing vehicles efficiently can reduce a business's impact on congestion.AQA
Demand: The quantity of a product that customers are willing and able to buy at a given price over a period of time.AQA
Demand and customer response: The quantity customers are willing to buy, which is likely to fall as prices rise and likely to rise as price falls.AQA
Demand and supply: The forces that influence price in a market, rather than price being set by one side alone.AQA
Demand changes over time: Demand is low at introduction, rises during growth, peaks at maturity and falls in decline.AQA
Democratic or consultative management: A style that involves employees and can raise engagement and motivation.AQA
Demographic Segmentation: Dividing a market based on population characteristics such as age, gender, income, or occupation.AQA, OCR
Demographics: Population characteristics used to identify market segments.Pearson Edexcel
Depreciation: A fall in the value of the pound, which makes imports cost more but makes exports cheaper.AQA
Depth versus breadth of research: Interviews give depth but reach few people, take time and cost more per respondent, so they often complement a survey.AQA
Design mix: Three fundamental elements that a business must balance when developing a new product: function, aesthetics, and cost.Pearson Edexcel
Development: The process of preparing employees for future roles and responsibilities, focusing on long-term personal growth.OCR
Differentiation: Identifying gaps and differentiating rather than imitating rivals, for example through longer hours or a niche product range.AQA
Digital access and inclusion: Not all stakeholders have reliable access, and messages can be misunderstood without tone.AQA
Digital communication: A form of promotion transformed by technology, through targeted social media advertising that lets businesses reach global audiences cost-effectively and…AQA, OCR, Pearson Edexcel
Direct channel: A route that sells straight to the buyer, for example a farm shop or a manufacturer's own website, so the business keeps more of the selling price but must…AQA
Direct distribution channel: A method of selling directly to the customer without intermediaries, allowing two-way conversation so staff can answer questions and close a sale immediately.AQA
Direction and focus: Setting objectives gives a business a clear sense of direction and turns its broad aims into targets that can be measured and reviewed.AQA
Directors: The individuals responsible for setting the strategic direction and overall targets of the business.Pearson Edexcel
Discrimination: Recruitment rules require fair treatment in recruitment, promotion and dismissal regardless of protected characteristics.AQA, OCR
Diseconomies of scale: Cost disadvantages that can appear when a business grows too large, causing average cost per unit to rise.AQA, OCR
Disposable Income: The money households have left after payments such as mortgages, which higher rates reduce, so demand for non-essential goods may fall.AQA, OCR
Dissatisfied customers: Buyers whose expectations of a product or service have not been met, so they feel let down by the business.AQA
Distribution: Moving products from producer to customer, for example through wholesalers or delivery firms.AQA
Distribution channel: The chain such as producer to wholesaler to retailer to consumer, forming part of place in the marketing mix.AQA
Distribution channels: The methods used to get a product from the manufacturer to the consumer, such as retailers and e-tailers.Pearson Edexcel
Dividend: A share of the business's profits paid to shareholders as a reward for their investment.AQA, OCR
Dividend payments to owners: Owners aim for high dividend payments, meaning a share of profit distributed to shareholders, alongside potential capital growth.AQA
Dividends: A share of the business's profits paid to shareholders as a reward for their investment.AQA, OCR
Division of work: The way a business arranges tasks so that work is divided sensibly and activities are not duplicated or omitted.AQA
Downtime: The period when machinery is not actively producing goods, often because it is being cleaned or reset.OCR
Drawbacks of e-commerce and m-commerce: Delivery and returns costs, technical failures, cyber-security risks, intense price competition, and the need to keep stock and customer service responsive.AQA
Dual-source: A procurement decision where buyers use more than one supplier, which they may do when suppliers are unreliable.AQA
Dynamic business environment: Business is dynamic, meaning it constantly changes, and this links to the continuous need for innovation to survive and remain competitive.Pearson Edexcel
Dynamic Environment: The constantly changing external factors (technological, economic, legal) that affect how a business operates.AQA
Dynamic Markets: Environments characterized by rapid and continuous change in consumer preferences, technology, and competitive rivalry.OCR

E

E-commerce: Selling online, which allows businesses to operate from cheaper, remote warehouses rather than expensive high-street fixed premises, as physical customer…AQA, Pearson Edexcel
Economic and technological influences on the workforce: Technological advances impact HR by requiring new skills training, enabling remote working, and automating recruitment, while the economic climate affects HR…AQA
Economic Climate: The overall state of the economy, usually measured by factors like consumer income, unemployment, and interest rates.AQA, OCR
Economic climate and borrowing costs: Changes such as a rise in interest rates increase the cost of borrowing for a business with a variable-rate loan, reducing profitability and cash flow.AQA
Economic climate and globalisation: External influences that affect a business alongside technology, legislation and ethical and environmental expectations.AQA
Economies of scale: The cost advantages that a business gains as it increases its scale of production, causing average cost per unit to fall.AQA, OCR
Effective management of the supply chain: Planning and controlling the links so the right quantity and quality arrive at the right time without excessive cost.AQA
Efficiency: Getting the greatest output from the resources used, so waste of time, materials, energy and money is reduced.AQA
Efficiency and productivity: Greater efficiency means more output from each unit of input, such as labour, materials or time.AQA
Efficiency and waste reduction: Reducing waste of raw materials and holding less stock so storage and insurance costs fall, which can lower unit cost.AQA
Efficient scale: The level of output beyond which rises in average cost per unit can occur as a business grows.AQA
Employee and stakeholder protection: Employees must take reasonable care of themselves and others and cooperate with the employer, while the Act protects employees and others affected by the…AQA
Employee empowerment and motivation: Decentralisation can motivate managers and improve motivation through empowerment.AQA
Employee empowerment and training: Workers are enabled to halt production or suggest fixes, and are given the skills to meet standards.AQA
Employee health, safety and wellbeing: Protecting employees from hazards such as slips, machinery, chemicals and stress.AQA
Employee integration and motivation: Induction builds confidence and a sense of belonging, helping new employees settle in quickly and understand expectations.AQA
Employee morale: The spirit of staff, which can be lowered when they face more complaints and stress under poor customer service.AQA
Employee motivation and retention: Training builds confidence and motivation, which supports retention and lowers recruitment costs.AQA
Employee retention and productivity: The likelihood of staff staying with the business and the output they achieve, which a business weighs against cost when selecting a motivation method.AQA
Employees: Stakeholders who provide labour and seek secure employment, fair pay and safe working conditions.AQA
Employment law: Sets the legal rights and duties that shape how businesses recruit, manage and end relationships with workers.AQA, OCR
Employment rights: Employment law protects staff throughout their working lives, covering recruitment, pay, discrimination and health and safety.Pearson Edexcel
Employment Tribunal: A legal court that deals with disputes between employers and employees over employment rights.OCR
Encouraging product trial: Getting potential customers to experience a product, which sampling does by giving a small or trial-sized amount so they can try it before buying the…AQA
Enforcement and penalties: The Act is enforced by the Health and Safety Executive (HSE) and local authorities, who can inspect premises, issue improvement or prohibition notices, and…AQA
Enforcement notice: Action that can follow breaches of health and safety law, alongside unlimited fines and compensation claims.AQA
Enterprise: The process of identifying a business opportunity and organising resources to create value, often by starting a new venture or expanding an existing one.AQA, OCR
Enterprise Zone: A designated geographic area where the government offers tax breaks and other incentives to encourage business investment.AQA
Entrepreneur: The individual who drives the business by generating the idea, organising resources, making decisions and bearing the risk of failure.AQA, OCR, Pearson Edexcel
Entrepreneurial motivation: The underlying reason for starting a business, which may be financial or non-financial and which influences the legal structure, objectives and risks the new…AQA
Entrepreneurial motives and rewards: Reasons for embarking on running businesses include seeking financial reward, desiring independence to be one's own boss, pursuing a personal passion, or…AQA
Entrepreneurship: Taking calculated risks and showing initiative to set up a new commercial venture, organising resources to meet customer needs.Pearson Edexcel
Environmental costs of business activity: Noise and air pollution that arise when business activity disturbs the surroundings.AQA
Environmental impact: Poor disposal can pollute land, water and air, so the environmental standing of a business is affected.AQA
Environmental impact on local community: The local community aims to minimise environmental impact, such as reducing pollution, noise, traffic and waste, to protect local quality of life.AQA
Environmental responsibility: Choosing options that reduce harm to the natural world.AQA
Environmental sustainability: Focusing on minimising negative impacts on the planet, such as reducing carbon emissions, minimising plastic packaging, and safely disposing of waste.Pearson Edexcel
Environmental sustainability and legal compliance: Meeting environmental rules and carrying legally required information such as ingredients and allergens on packaging.AQA
Equality Act 2010: Legislation protecting individuals from discrimination in the workplace and in wider society.Eduqas
Equity and net assets: Equity includes share capital and retained profit, and net assets equal total assets minus total liabilities.AQA
Ethical and environmental responsibility: Considerations that may become more prominent as businesses grow and face greater public scrutiny or regulation.AQA
Ethical and legal constraints on promotion: Ethical and environmental concerns compel marketing to adopt sustainable packaging and promote 'green' credentials, while legislation restricts marketing…AQA
Ethical behaviour: Acting on moral principles beyond what the law demands, such as paying suppliers a fair price or refusing child labour.AQA
Ethical decision-making and stakeholder impact: Deciding how to allocate scarce resources responsibly, taking account of stakeholder expectations alongside profit and sustainability.AQA
Ethics: The moral principles that guide how a business operates, going beyond what is strictly required by law.OCR
Ethics versus profit: A possible trade off where acting on moral principles, such as fair pay or animal welfare, may reduce profit in the short term.AQA
Evaluation: Weighing JIT's benefits against its risks for the specific business in the case, then reaching a supported judgement.AQA
Evaluation and judgement: Reaching a supported judgement that different businesses may reasonably choose different methods or a blend of both.AQA
Evaluation and supported judgement: Weighing which factors matter most for a named business and reaching a supported judgement on which influences dominate.AQA
Evaluation of promotional choices: A business must judge whether television reaches enough of the right customers at an acceptable cost compared with other promotional methods.AQA
Evidence-based business judgement: A supported overall judgement that weighs the evidence rather than describing the figures alone.AQA
Evidence-based conclusions: Interpreting the data by linking it to a business consequence, using figures as evidence, for example rising sales may justify extra stock.AQA
Evidence-based judgement: Judging which factor matters most and why, using evidence from the case to reach a justified conclusion.AQA
Exchange Rate: The price of one currency in another, for example £1 buys a number of euros or dollars.AQA, Eduqas
Expectation versus experience: The gap that good customer service narrows or closes, so that satisfaction rises.AQA
Exports: Selling to overseas markets, which offers opportunities to increase potential sales and extend product life cycles.Pearson Edexcel
Extension strategies: Deliberate actions taken during the maturity or decline stages of the product life cycle to prolong sales and delay or reverse decline.AQA, Pearson Edexcel
Extension strategies and product decline: In maturity, businesses may use extension strategies such as product updates or new markets; in decline, sales fall as tastes change or substitutes appear.AQA
Extension Strategy: A way to revive demand and delay or reverse decline by targeting new segments or updating the product.AQA, OCR
External (inorganic) growth: Growth that is faster and involves joining with other firms through a merger or takeover.Pearson Edexcel
External change: A shift such as new competitors, technology, income trends or legislation that forces adjustments to the marketing mix.AQA
External Communication: The exchange of information between the business and outside individuals or organisations (e.g., business to customer).OCR
External environment: The external setting in which a business operates, made up of conditions and forces that affect it and never stand still.AQA
External finance: Outside funds from an overdraft, trade credit, loan capital, share capital, venture capital or crowd funding, which may add cost or loss of control.AQA
External growth: Growth that involves integration through mergers or takeovers.AQA, OCR
External influences: Factors outside a business's control that affect its costs, demand, operations and strategy.AQA
External influences on demand: Demand can be influenced by external factors, such as a recession or a competitor's new product, which can change demand at any stage.AQA
External recruitment: Attracting candidates from outside the business, such as via job centres, agencies or online adverts.AQA, Eduqas, OCR, Pearson Edexcel
External risk and opportunity: Greater exposure to exchange-rate movements, overseas economic problems and international supply-chain disruption, alongside access to larger markets and…AQA
External sources of finance: Finance that comes from outside the business, such as family and friends, a new share issue, a loan or mortgage, overdrafts, trade credit, hire purchase and…AQA
External Stakeholder: Groups outside the business that have an interest in its activities, such as customers, suppliers, and the local community.AQA, OCR
External stakeholders: Those outside the business, such as the local community experiencing the impact of a new factory, suppliers and the government.Pearson Edexcel
External training: Provided by outside specialists or agencies; brings current expertise and qualifications but usually costs more and may be less tailored.AQA
Extrapolating: Applying the proportion found in a sample to the wider target population to estimate total potential demand.AQA

F

Factors of Production: The resources needed to produce goods and services: Land, Labour, Capital, and Enterprise.AQA
Failure costs: Costs such as refunds and lost goodwill that arise when quality problems are not prevented or detected.AQA
Fairness: Concerns equal treatment, just rewards and avoiding exploitation, such as paying at least the legal minimum wage and not using child labour.AQA
Fairtrade: An ethical movement that ensures farmers and workers in developing countries are paid a fair price and have decent working conditions.AQA, OCR
Feedback, complaints and continuous improvement: Customer feedback, complaints and review data can be used to identify and fix recurring problems.AQA
Finance and profit sharing: Partnerships can raise more finance and bring wider skills than a sole trader, but profits are shared.AQA
Finance available: The money a business can commit to promotion, which directly limits the promotional mix.AQA
Finance Function: The department responsible for managing the financial resources of a business, including recording transactions, planning, and supporting decisions.OCR
Finance influencing other functions: Setting limits and signals, so a tight cash-flow forecast may delay expansion while a healthy budget may allow new equipment or recruitment.AQA
Finance supporting business decisions: Supplying data that other functions use so they plan around the money available.AQA
Financial analysis: Comparing key figures in several ways to judge whether performance is improving, competitive and sustainable.AQA
Financial and non-financial rewards: Money-based methods such as piece rate, commission, bonus, profit sharing and fringe benefits, alongside methods without direct payment such as job rotation,…AQA
Financial control and record keeping: Recording income and expenditure and providing financial information for decisions.AQA
Financial forecasts: A section showing expected cash inflows and outflows, helping to assess whether the idea is viable.AQA
Financial impact of legislation: New legislation or environmental standards may require unexpected capital expenditure, forcing the business to seek new sources of finance.AQA
Financial interpretation and comparison: Reading the figures in an income statement and comparing them over time or with a rival to judge whether performance has improved or worsened.AQA
Financial limitations: Historical data reflects past performance rather than guaranteeing future success, while forecasts are only estimates, and qualitative factors like staff…Pearson Edexcel
Financial methods: Monetary rewards used to motivate employees, including remuneration, bonus, commission, promotion and fringe benefits.Pearson Edexcel
Financial objectives: Goals such as aiming to earn more money than paid employment provides.AQA
Financial performance: Assessed by using both margins and comparing them over time or with competitors.AQA
Financial performance measurement: Using formal records of a business's financial activity and position to assess how the business has performed.AQA
Financial reporting: Providing information about a business's financial performance and position through statements such as the income statement and statement of financial position.AQA
Financial reward and profit: A financial reason for starting a business, such as earning a profit, increasing income, or keeping all profits rather than paying them to an employer.AQA
Financial statement structure: The income statement records trading over a period, while the statement of financial position is a snapshot at a date.AQA
Financial viability: Assessed using estimates of revenue, costs and profit in a business plan.AQA
Fit for Purpose: Goods must be fit for the purpose they are supplied for, as well as any specific purpose made known to the retailer.OCR
Fixed and variable costs: Fixed costs do not change with output, while variable costs rise as output increases.AQA
Fixed Costs: Costs which do not vary with output and which combine with variable costs to make total cost.AQA, Eduqas
Fixed premises: Physical premises such as a high-street shop, which e-commerce businesses can avoid because physical customer access is no longer required.Pearson Edexcel
Fixed versus variable borrowing: Variable-rate loans move with the base rate, while fixed-rate loans stay constant until the fixed period ends.AQA
Flat structure: A structure with fewer layers and wider spans of control, often used to encourage faster communication and employee empowerment.AQA, Pearson Edexcel
Flexibility: The supplier's willingness to adjust order sizes or timings.AQA
Flexibility for employer and employee: A part-time contract gives the employee flexibility, and a zero hour contract gives the business flexibility because work is offered when needed.AQA
Flexible working: Arrangements such as a job share that offer flexibility for staff while retaining skills for the business.AQA
Flow Production: Continuous, automated assembly lines, like car manufacturing, which maximise productivity and drive down average unit costs through economies of scale.AQA, Eduqas, Pearson Edexcel
Focus group: A small, guided discussion with selected participants, used as a primary market research method to explore opinions, needs and reactions.AQA
Footfall: The number of people passing by a particular location.AQA, OCR
Formal channels: Channels such as reports and meetings that follow the structure, unlike informal channels such as conversations, which cross it.AQA
Formal training: Structured, often off-the-job learning with specific objectives and designated trainers.Pearson Edexcel
Franchise: An agreement where a franchisee pays for the right to use a franchisor's brand name and business model.Pearson Edexcel
Franchisee: The party that pays for the right to use a franchisor's brand name and business model.Pearson Edexcel
Franchising: Letting franchisees run outlets using the brand, though each franchisee may interpret procedures differently, creating inconsistent customer experiences.AQA
Franchisor: The party that owns the brand and business model which the franchisee buys the right to use.Pearson Edexcel
Free gift: A promotional technique in which a customer receives an extra item at no additional charge when they buy a product.AQA
Free Trade: International trade left to its natural course without tariffs, quotas, or other restrictions.AQA
Fringe benefits: Non-cash rewards such as a company car, private health cover, staff discounts or flexible working, which can attract and retain staff and signal that the…AQA, OCR
Function: How well a product does its job and its overall reliability, ensuring it is fit for purpose and performs its intended task effectively.Pearson Edexcel
Functional Areas: The different departments within a business, typically Operations, Finance, Marketing, and Human Resources.OCR
Functional planning: Splitting a business objective into functional plans, each containing targets, actions, timescales and resources that link to the others.AQA
Functional plans: Plans for operations, human resources, marketing and finance into which business objectives are split, with clear links throughout.AQA

G

Gap in the market: An area with unfulfilled customer needs that entrepreneurs can spot using market mapping.Pearson Edexcel
Gender segmentation: Dividing a market by whether buyers are male, female or do not identify strictly with either.AQA
Global integration: The growing integration of world economies, shown by more international trade, investment, communication and movement of people.AQA
Global sourcing: Buying materials, components and labour from countries where costs are lower or expertise is stronger.AQA
Global warming: The long-term increase in Earth's average temperature, largely caused by greenhouse gas emissions.AQA
Globalisation: The integration of global economies, which profoundly impacts businesses through imports, exports, changing business locations and multinationals.AQA, OCR, Pearson Edexcel
Goods: Tangible products that can be seen, touched and stored, such as a smartphone or a loaf of bread.AQA, Pearson Edexcel
Goods and services: Tangible products such as a bakery making bread, and intangible activities such as a salon cutting hair.AQA
Greenhouse gases: Gases such as carbon dioxide (CO₂) and methane (CH₄) released from burning fossil fuels, deforestation and agriculture.AQA
Gross profit: The financial reward calculated as sales revenue minus cost of sales, focusing purely on the direct costs of making or buying a product.AQA, Pearson Edexcel
Gross profit margin: Calculated as (gross profit / sales revenue) × 100, showing the revenue retained after direct costs.AQA, Pearson Edexcel
Group dynamics: The way participants interact in the discussion, which may influence the results.AQA

H

Health and safety: Legislation requires employers to provide a safe working environment, adequate training, and protective equipment, which reduces the risk of accidents, legal…Pearson Edexcel
Health and safety at work: Trained staff work more safely, reducing accidents and the costs and disruption these bring.AQA
Health and Safety at Work Act 1974: The main law protecting people at work in the UK, placing a duty on employers to ensure the health, safety and welfare of employees and others affected by the…AQA
Health and safety compliance: Induction introduces health and safety rules, reducing the risk of accidents and legal breaches.AQA
Health and Safety Executive (HSE): The government body responsible for enforcing health and safety legislation.AQA
Hierarchical (tall) structure: A structure with many management layers and narrow spans of control, making it suitable for large businesses requiring close supervision.Pearson Edexcel
Hierarchical structure: A structure with many layers of management and a long chain of command, offering clear progression but slower communication.Pearson Edexcel
Hierarchy: The system of ranking and organising people in an organisation, with those having more authority at the top.AQA, OCR
Honesty: Concerns truthfulness and transparency, such as accurate labelling, clear pricing and not making false environmental claims.AQA
Horizontal, vertical and conglomerate integration: A horizontal merger joins competitors, a vertical merger joins a firm with a supplier or customer, and a conglomerate merger joins unrelated businesses.AQA
Hours worked: A full-time contract normally involves working the business's standard week, often around 35 to 40 hours, while a part-time contract involves fewer hours than…AQA
Hygiene Factors: Elements of a job (like pay and conditions) that do not motivate but will cause dissatisfaction if absent.OCR

I

ICT developments in customer service: Advances in information and communication technology, such as websites, apps, email, live chat, social media, CRM systems, chatbots and online feedback tools,…AQA
Identifying customer needs: Finding out what buyers want, can afford and value, using methods such as surveys, interviews, sales data and observation.AQA
Identifying market opportunities: Finding gaps in the market or unmet customer needs that a business could serve, such as spotting a gap for a new product or an untapped region.AQA
Image: The impression customers form of the product and brand, created through styling, packaging, name and quality cues.AQA
Impact of business growth and expansion on pricing decisions: As a business grows and expands, factors such as fixed costs, buying economies, new segments and markets, and competitor reactions shift.AQA
Impact of changes in revenue and costs: An increase in variable costs steepens the total cost line, raising the break-even point, while a higher selling price steepens the revenue line, lowering the…Pearson Edexcel
Impact of competition on pricing and profitability: Rivals offering similar products lead customers to compare on price, quality and service, so a business may lower prices, which can reduce profit margins.AQA
Impact of image on pricing, loyalty and competitiveness: A successful image helps a business charge higher prices, build customer loyalty and stand out from rivals.AQA
Impact of legislation on HR: Legislation directly dictates HR policies on minimum wage, discrimination, and health and safety.AQA
Impact on cost, quality and capacity: Operations influence cost per unit, capacity, quality and customer satisfaction, with efficient operations lowering waste and lead times.AQA
Impact on revenue, costs and profit: The effect of a price cut in which profit per unit falls, so the extra volume must cover the lower margin, and total revenue and total costs must both be…AQA
Importance of customer service: Satisfied customers are more likely to return, recommend the business and overlook minor problems, which can raise sales and profit, while poor service can…AQA
Importing and exporting: A business that imports and/or exports is affected by exchange rates through the cost of imports and the price of exports abroad.AQA
Imports: Goods brought into the UK, which increase domestic competition as overseas firms enter the market but also allow businesses to buy cheaper or higher-quality…Pearson Edexcel
Impulse purchasing: Buying prompted by a display that shows a product, its price and a short message at the moment of decision.AQA
Income: The money households receive, and when it rises or falls, spending on products and services shifts.AQA
Income statement: The component that records revenue, cost of sales, expenses and profit over a period.AQA
Incorporated structures: Private and public limited companies, which have separate legal identity and limited liability but must register and disclose more information.AQA
Incorporation: Setting up involves legal formalities, with registration at Companies House required and 'ltd' appearing after the company name.AQA, OCR
Increased spend: Customers buying more from a business over time, whether by purchasing more often, buying extra items, or choosing higher-priced products.AQA
Increasing sales: Raising the volume or value of purchases from existing and new customers, for example through special offers, loyalty schemes or seasonal campaigns.AQA
Independence: The non-financial reward of being one's own boss and having autonomy over business decisions.Pearson Edexcel
Independence and control: A non-financial reason for starting a business, such as being your own boss, pursuing a passion, or gaining flexibility.AQA
Indirect channel: Selling through an intermediary such as a supermarket, which reaches more customers quickly but reduces the producer's control and margin.AQA
Induction: One way knowledge is built, alongside supplier training, manuals, shadowing experienced colleagues and using the products.AQA
Induction training: The introduction of a new employee to the business, its policies, procedures, health and safety requirements and their specific job role.AQA, OCR
Inferior Good: A product whose demand increases when consumer incomes fall.AQA
Inferior goods: Products for which demand can fall as income rises because buyers trade up to better alternatives.AQA, OCR
Inflation: The general increase in the level of prices in an economy over a period of time.Eduqas
Inflows and outflows: Receipts from sales, loans and asset sales, and payments to suppliers, wages, rent and loan repayments.AQA
Influence of market features on the 4Ps: The way the features of a market shape every pricing, product, promotion and place decision, so that the 4Ps may stress low price, distinctiveness, targeted…AQA
Informal training: Unstructured, on-the-job learning, such as mentoring or observing experienced colleagues.Pearson Edexcel
Information overload: Excessive communication that overwhelms employees with unnecessary emails or meetings, wasting time and causing stress.OCR, Pearson Edexcel
Informing: Giving customers facts about the product, such as features, price or availability.AQA
Infrastructure: The basic physical and organizational structures (e.g., roads, broadband, power supplies) needed for a business to operate.AQA, OCR
Initial Public Offering (IPO): The process of a company offering its shares to the public for the first time.OCR
Innovation: Generating new ideas or finding better ways to do things, such as developing a unique product or service.AQA
Insolvency: A situation where a profitable firm can still fail if customers buy on credit and cash arrives later than bills fall due.AQA, OCR, Pearson Edexcel
Inspection costs: The expenses a business incurs when checking that products or services meet quality standards before they reach customers.AQA
Intangibility and variability of services: Services are intangible, inseparable from the provider, variable and perishable, so quality is judged during and after delivery.AQA
Integrated marketing mix: When all four Ps complement each other and target the exact same customer demographic, so the elements work together cohesively.Pearson Edexcel
Interdependence: A change in one function ripples through the rest, so objectives are split into functional plans that share targets, timescales and resources.AQA, OCR
Interdependence of business functions: The mutual reliance between operations, human resources, marketing and finance when pursuing business objectives, so that if one function changes, the others…AQA
Interdependence of marketing decisions: Changing one element affects the others, so raising price may require more persuasive promotion or a more exclusive place.AQA
Interdependence of sections: Sections link together, so a marketing promise must be affordable within the finance section.AQA
Interdependence of the four functional areas: The four functional areas are operations, finance, human resources and marketing, and they are interdependent, so a change in one area creates a knock-on…AQA
Interest Rate: The cost of borrowing money and the reward for saving, expressed as a percentage.AQA
Interest rates: The cost of borrowing and the return on saving, usually expressed as a percentage per year.AQA, Eduqas
Intermediaries: Businesses in an indirect channel, such as a retailer that buys from the producer and sells to the public, or a wholesaler that buys in bulk and supplies many…AQA
Intermediary role: A retailer buys goods from a producer or wholesaler and sells them to final customers, usually in small quantities from a shop or website.AQA
Internal (organic) growth: Expansion from within the business, such as launching new products developed through innovation and research and development.AQA, Pearson Edexcel
Internal and external factors: Internal economies of scale arise within the business, while external economies of scale arise from the industry or location.AQA
Internal and external influences on pricing: The factors, internal and external, which might influence the pricing decision, particularly as businesses grow and expand.AQA
Internal Communication: The exchange of information between people within the same organisation (e.g., manager to employee).OCR
Internal finance: Finance from retained profit, sale of assets or net current assets, which avoids debt but is limited.AQA
Internal recruitment: Filling a vacancy with an existing employee, perhaps through promotion or transfer.AQA, Eduqas, OCR, Pearson Edexcel
Internal sources of finance: Finance that comes from within the business, such as retained profit and selling unwanted assets.AQA
Internal Stakeholder: Individuals or groups who are directly involved in the operations or ownership of the business (e.g., owners, employees).AQA, OCR
Internal stakeholders: Those such as employees working within the company, or owners and workers, who are inside the business.Pearson Edexcel
Internal versus external sources of finance: Finance raised from within the business, such as retained profit or sale of assets, is internal, while finance from outside, such as a bank loan, is external.AQA
Internal vs external recruitment: Internal recruitment includes promotion and transfer, while external recruitment includes job centres, agencies, advertising, and online.AQA
International competitiveness: How UK businesses compete internationally by choosing an appropriate offering, such as lower prices, better quality, a wider range of products or a unique…AQA
International trade: The flow of goods between countries, which barriers are designed to restrict.Pearson Edexcel
International trade and investment: The increased buying and selling across borders and investing abroad that show world economies growing more integrated.AQA
Interpretation: Reading the figures on financial statements and drawing conclusions about performance and position.AQA
Interpretation of findings: Reading quantitative values, comparing groups and spotting trends, and identifying themes, attitudes and reasons in qualitative data, so that the numbers show…AQA
Interview: A live conversation in which a researcher asks a respondent questions and probes the answers.AQA
Interviewer bias: A risk of interviews where the interviewer's expectations may shape the questions, so neutral, consistent prompts should be used.AQA
Intrapreneurship: The act of behaving like an entrepreneur while working within a large, established organization.OCR
Investment: A business decision such as whether to fund expansion through loans or retained profit, affected by interest rate changes.AQA
Investment and risk: Limited liability encourages shareholders to invest because their potential loss is capped.AQA

J

JIT: Stock is ordered to arrive just as it is needed for production or sale, keeping stock levels minimal.AQA
Job analysis: Examines the tasks, responsibilities and skills required for the role, and is carried out before the job description and person specification are written.AQA
Job description: A document that states the job title, duties, location, pay and conditions.AQA, OCR, Pearson Edexcel
Job design and employee responsibility: Shaping the tasks of a job, where job enrichment adds extra responsibility and authority and job rotation moves an employee between tasks.AQA
Job enrichment: Providing more complex, challenging duties to develop skills.AQA, Pearson Edexcel
Job Production: A method where a business makes a single, bespoke product from start to finish before beginning the next item.AQA, Eduqas, Pearson Edexcel
Job roles and responsibilities: Directors set strategy, managers plan and control a function, supervisors oversee daily work and operatives carry out tasks, with duties including…AQA
Job rotation: Moving workers between tasks to reduce boredom.Pearson Edexcel
Job Satisfaction: How content an individual is with their job.OCR
Job security and income certainty: A zero hour contract does not guarantee any minimum hours, giving the worker uncertain income, whereas a full-time contract provides regular pay.AQA
Job share: Two or more employees splitting the hours and responsibilities of a single full-time role, offering flexibility for staff while retaining skills for the…AQA
Judging success: Success is judged by measuring actual performance against the target, so judgements are evidence-based rather than subjective.AQA
Just in Case (JIC): A stock management system where a business holds buffer stock to protect against supply issues or sudden demand.AQA
Just in time (JIT) stock control: A method that eliminates buffer stock entirely, with materials arriving exactly when needed for production, reducing storage costs and waste.Pearson Edexcel
Just-in-Time (JIT): A stock management method in which materials and components are ordered so they arrive just as they are needed for production or sale, rather than being held…AQA, Eduqas
Just-in-time stock control: Materials arrive as production needs them, so little stock is held.AQA

K

Kaizen: Encouraging workers to suggest small continuous improvements, which can raise quality, cut waste and increase motivation.AQA

L

Labour: The human effort, both physical and mental, provided by workers.AQA
Labour availability: The supply of workers with the right skills and the local wage rates the business must pay.AQA
Labour supply and wage costs: Low unemployment can cause skills shortages, while high unemployment means a larger, cheaper labour supply.AQA
Labour Turnover: The proportion of staff leaving a business over a period of time.Eduqas
Land: All natural resources, including the physical site, raw materials, water and minerals, not just the ground itself.AQA
Lead time: The time taken before customers receive goods, which efficient logistics reduces and poor logistics extends.AQA, OCR, Pearson Edexcel
Lead times: Used with reorder levels and stock control charts to help manage stock.AQA
Lean production: Using fewer resources to make the same output, targeting waste and inefficiency rather than necessarily cutting jobs.AQA
Lean production processes: Cutting any waste and unnecessary costs to create a streamlined process and fast production times.AQA
Legal compliance: Businesses must comply with waste regulations, which may require separating hazardous waste, keeping records and using licensed carriers.AQA
Legal compliance and risk management: A strong safety record reduces the risk of fines, compensation claims and court action.AQA
Legal rights and responsibilities: The protections and duties set out in the agreement, with key legal rights including the minimum wage and holiday pay.AQA
Legal structure: Determines who owns a business, how it is controlled, how profits are shared and the extent of owners' liability.AQA
Legal structures and ownership: Common forms include charities, social enterprises, co-operatives and community interest companies.AQA
Legislation: Laws passed by acts of parliament that businesses must comply with.AQA
Legislation and ethics: An external influence covering legislation and ethical and environmental expectations.AQA
Legislation and sustainability: New laws and regulations raise compliance costs but also protect workers and customers, while environmental expectations concern pressure to reduce waste, cut…AQA
Level of employment: How many people in an economy have paid work, which matters because employed people usually earn income they can spend on goods and services.AQA
Levels of employment: The number of people of working age in paid work.AQA
Liabilities: Amounts the business owes to others, such as bank loans, overdrafts, unpaid supplier invoices and tax due.AQA
Liability: Sole traders and ordinary partners have unlimited liability, while shareholders in a Ltd or PLC have limited liability.AQA
Liability and risk: Partners usually have unlimited liability, so personal assets can be used to pay business debts, although some partners may have limited liability in certain…AQA
Limitations and risks of technology-based customer service: Some customers lack digital access or skills, technology can fail, and automated replies may frustrate people who want human contact.AQA
Limitations of financial data: Statements are historical and may not capture brand value or market conditions, so they inform rather than replace judgement.AQA
Limitations of online trading: Strong competition online, the need for reliable technology and secure payment, delivery costs and possible loss of personal contact.AQA
Limited liability: The business has a separate legal identity, so if it fails the owners only lose the money they invested in share capital and their personal possessions are…AQA, Pearson Edexcel
Link between operations and competitiveness: Operations sit at the centre of business activity, linking finance, marketing and human resources, and affect competitiveness, reputation and profitability.AQA
Liquidation: A situation, alongside insolvency, arising when customers buy on credit and cash arrives later than bills fall due.AQA
Liquidity: The ability of a business to pay its short-term debts.AQA
Liquidity and cash shortages: A negative closing balance signals a cash shortage needing action, which creates a liquidity problem.AQA
Living Wage: A wage that is high enough to maintain a normal standard of living.OCR
Loan capital: An external source, such as a bank loan, that provides immediate funds but must be repaid with interest, increasing fixed costs.Pearson Edexcel
Local community: A stakeholder group that expects minimal disruption, low pollution and local employment opportunities from a business.Pearson Edexcel
Local responsiveness versus consistency: A decentralised business can respond quickly to local customers, but may suffer inconsistent standards, while a centralised business can apply consistent…AQA
Local versus national reach: Local newspapers can target a geographic community, while national newspapers can reach a large, broad audience.AQA
Location factors: Influences on where a business decides to set up, affecting its costs, revenue and competitiveness.AQA
Logistics: Moving and storing materials and finished goods, moving stock quickly and safely to reduce lead times and storage costs.AQA, OCR
Long-term versus short-term planning: Aims are general and long term, while objectives are precise, often time-bound and can be checked.AQA
Loss: Occurs when total costs exceed revenue, so the subtraction gives a negative result.AQA
Loss Leader: A product sold at a price below its cost of production to attract customers into a store, in the hope they will buy other, profitable products.OCR

M

M-commerce: Buying and selling through mobile devices, such as apps and mobile-optimised sites.AQA
Making business decisions: Choosing suppliers, setting prices, and determining marketing strategies.Pearson Edexcel
Making supported judgements about performance and position: Reaching a supported conclusion that weighs the evidence and uses both the figures and the business context rather than describing figures only.AQA
Management layers: The levels of management between senior leaders and front-line staff, which are many in a tall structure and few in a flat structure.AQA
Managing stock: Controlling the quantity, timing and cost of raw materials, components and finished goods held by a business.AQA
Margin: The share each intermediary takes from the final selling price, so the producer's share of the final price falls as the chain lengthens.AQA
Margin and control: The retailer takes a margin, so the producer receives less per unit and has less control over how the product is displayed or priced.AQA
Margin of safety: The difference between the actual or expected output and the break-even output, showing how much sales can fall before a loss occurs.AQA, Pearson Edexcel
Mark-up: A fixed percentage or cash amount added to unit cost as profit to set the selling price.AQA
Market: Any place, physical or online, where buyers and sellers exchange goods or services, and where price is influenced by demand and supply.AQA
Market gaps: Unfulfilled needs that competitors have missed.Pearson Edexcel
Market growth rate: One of the two axes used to sort a firm's products in the Boston Box, alongside relative market share.AQA
Market information: Data about the market that includes its size, growth, trends and opportunities.AQA
Market mapping: A visual tool that plots competitors on a two-dimensional grid based on two key variables, such as price and quality.Pearson Edexcel
Market opportunity: Identifying an unmet customer need and launching a product or service to fill it.AQA
Market opportunity and personal circumstance: Reasons for starting a business linked to spotting a gap in the market or unmet customer needs, or to redundancy, unemployment or wanting a better work-life…AQA
Market Orientation: An approach where a business prioritises identifying and satisfying customer needs and wants before developing a product.AQA
Market position and competitiveness: A business's standing in its market, which changes as competition, regulation, technology and consumer values shift.AQA
Market reach and competitiveness: Businesses gain wider reach beyond their local area through selling online.AQA
Market reach and e-commerce: Online selling widens the market beyond a local area, so a small shop moving to an online store may reach national customers.AQA
Market reach and internationalisation: Extending reach beyond a local area to national and international markets, often at lower cost than opening physical shops.AQA
Market research: Used to identify and understand the target market before marketing decisions are made.AQA, OCR, Pearson Edexcel
Market research methods: Using printed press, such as newspapers and magazines, to gather secondary data on market trends and consumer behaviour.AQA
Market Segmentation: Dividing a broad target market into smaller, more defined groups of consumers who share similar characteristics, needs, or interests.AQA, OCR, Pearson Edexcel
Market segments: Groups of customers identified using criteria such as location, demographics, lifestyle, income and age.Pearson Edexcel
Market share: A percentage of total industry sales, calculated as the proportion of total sales in a market.AQA, OCR, Pearson Edexcel
Market size: The total value or volume of sales in a whole market, measured by value in pounds or by volume in units.AQA
Marketing mix: The combination of price, product, promotion and place, known as the 4Ps, in which promotion is the element concerned with communicating with customers.AQA
Marketing mix adaptation: Adapting elements such as products, styles, sizes or messages for a group when men and women tend to want different things.AQA
Marketing mix coherence: A recommendation is stronger when the 4Ps reinforce one another rather than conflict.AQA
Marketing mix consistency: The marketing mix must be consistent: a premium price suits high quality and exclusive distribution, while a low price suits mass-market promotion.AQA
Marketing mix coordination: Ensuring the product meets a need, promotion informs and persuades, place ensures availability, and price reflects the strategy.AQA
Marketing mix decisions: In growth, price may stay competitive or shift as volumes rise, the product may gain features or versions, promotion moves from trial-building to…AQA
Marketing mix decisions at each stage: The model helps businesses decide on pricing, promotion and product changes at each stage.AQA
Marketing mix decisions over time: The marketing mix may change across stages, such as heavy promotion at introduction and price review at maturity.AQA
Marketing mix elements: The four elements of the mix are product, price, place and promotion, which are chosen and combined to suit the identified target customer.AQA
Marketing mix integration: Supporting promotion and place together, and also price by highlighting a discount or multibuy, through a display at the point of purchase.AQA
Marketing mix responses: A business might respond at each stage, for example by using price skimming at introduction or extension strategies at maturity.AQA
Marketing objectives: One factor that selection of the promotion mix depends on, alongside budget, target market, product type, stage in product life cycle and competitor actions.AQA
Mass Marketing: Attempting to appeal to an entire market with one basic marketing strategy, ignoring segmentation.OCR
Mass reach and audience targeting: A single advert can be seen by a very large audience, and mass audiences can be targeted through programme choice and scheduling.AQA
Matching finance to purpose: Judging how well a source of finance fits a business's need by considering the amount required and the time period.AQA
Maturity: The product life cycle stage where sales stop rising and level off at their highest sustained level.AQA
Measuring and monitoring performance: Objectives allow progress to be monitored against deadlines and provide a benchmark for judging success.AQA
Measuring and reviewing performance: Objectives provide a benchmark for judging performance, so managers can compare actual sales, costs or output against the target and decide whether action is…AQA
Measuring performance: Actual performance is compared with the objective to decide whether the business has succeeded.AQA
Measuring satisfaction with surveys and reviews: Tracking satisfaction through surveys, review scores, complaint rates and repeat-purchase data, then acting on weak areas.AQA
Media selection: Choosing media based on budget, target audience, reach, cost per contact and the message.AQA
Meeting needs through the marketing mix: Matching the marketing mix to the identified needs, so price, product features, promotion and place all fit what customers said they value.AQA
Merger: Two companies agree to form a single new entity.OCR, Pearson Edexcel
Mergers and takeovers: External growth in which a takeover buys control of another business, while a merger combines two businesses, often more equally.AQA
Methods of influence and pressure: Employees may resist change through low productivity or industrial action, customers can switch to rivals or post negative reviews, and suppliers can tighten…AQA
Minimum wage: Pay must be at least the minimum wage, alongside working time limits and rights to holidays, rest breaks and leave.AQA
Misleading claims: Something accurate advice avoids, along with returns, when staff know the products they sell.AQA
Moderator: The person who guides the discussion by asking open questions about a product, brand or idea.AQA
Monopoly: A market dominated by a single business, resulting in little to no competition.AQA
Motivation: The desire and willingness of an employee to work hard and put effort into their job.AQA, OCR
Motivation and co-ordination of staff: Objectives motivate staff when they are challenging but achievable, and they help co-ordinate different functions such as marketing, operations and finance.AQA
Motivation and decision making: Objectives motivate staff when targets are challenging but achievable, and they guide decision making and resource allocation, since money and time can be…AQA
Motivation and engagement: Objectives motivate staff when targets are challenging but achievable, giving clear targets and a sense of purpose.AQA
Motivation and retention: Training can make employees feel valued and more confident, leading to greater effort, better attendance and lower staff turnover, and trained employees are…AQA
Multinational Company (MNC): A business that has operations (such as production or service facilities) in more than one country.AQA, OCR
Multinationals: Companies operating in multiple countries, which benefit from economies of scale but face complex logistical and cultural challenges.Pearson Edexcel

N

National Living Wage: A higher rate for workers aged 21 and over.AQA
National Minimum Wage: A legal minimum hourly rate set by government.AQA, OCR
Necessities and luxuries: Necessities such as basic food are less income-sensitive, while luxuries such as holidays are more sensitive.AQA
Need: A good or service essential for living (e.g., food, water).OCR
Needs: Essentials required for survival or basic living, such as food, water, shelter and warmth.AQA
Net cash flow: Inflows minus outflows for that period, where positive means a surplus and negative a deficit.AQA, OCR, Pearson Edexcel
Net Profit: A comprehensive measure of financial performance found by deducting all other operating expenses and interest from the gross profit.AQA, OCR, Pearson Edexcel
Net profit margin: Calculated as (net profit ÷ revenue) × 100, it shows overall profitability after all expenses.AQA, Pearson Edexcel
New product launch: A stage at which sampling is especially useful, along with improved products, food and drink, cosmetics and subscription services.AQA
Niche Market: A small, specialised segment of a larger market.AQA
Niche Marketing: Targeting a very specific, small, and well-defined segment of the market.OCR
Non-financial methods: Methods focused on job design, including job rotation, job enrichment and autonomy.Pearson Edexcel
Non-financial motivation: Uses factors other than pay to encourage employees, and often works best alongside fair financial rewards.AQA
Non-financial performance indicators: Measures of success such as customer satisfaction, employee satisfaction, market share, social and ethical performance, environmental sustainability and…AQA
Non-price competition: Competing by improving product quality, promoting heavily or widening distribution instead of competing on price.AQA
Normal Good: A product whose demand increases when consumer incomes increase.AQA
Normal goods: Products for which demand usually rises as income rises, as a family with more disposable income may eat out more often.AQA, OCR
Not-for-profit organisation: An organisation whose main aim is to fulfil a social, community or charitable mission rather than to generate profit for owners.AQA
Number and size of firms: A structural feature ranging from many small firms to a few large ones or a single dominant firm.AQA
Numerical trends: Patterns over time in quantitative data, such as a steady decline in footfall data.Pearson Edexcel

O

Objective: A specific, measurable target that helps the business work towards an aim, often time-bound and able to be checked.AQA, OCR
Objectives: Specific targets that businesses set, guiding decision-making and providing criteria for judging success.AQA
Obsolescence: Products and services become obsolete when they are no longer needed or replaced by superior alternatives, such as traditional film cameras with the rise of…Pearson Edexcel
Off-the-job training: Learning away from the normal workstation, such as day release, short courses, online modules or external workshops; provides expert knowledge and broader…AQA, OCR
On-the-job training: Training delivered in the normal workplace while the employee carries out their usual tasks, often led by an experienced colleague or supervisor.AQA, OCR
Ongoing training: Training for all employees to keep skills current with changing technology and remain adaptable to market or technological changes.Pearson Edexcel
Online data sources: Sources such as competitor websites, industry reports, government statistics, social media and review sites used to gather existing data.AQA
Online reviews and social media: Channels through which negative comments can spread quickly when customers receive poor service.AQA
Online trading opportunities and challenges: Weighing benefits, such as a larger customer base and 24/7 trading, against challenges, such as delivery, returns, currency, language and competition.AQA
Online transactions and payment security: Customers can order at any time and pay securely when buying online.AQA
Open questions: Questions that invite detailed answers and collect qualitative data.AQA
Opening and closing balances: The opening balance is cash held at the period's start, and the closing balance is opening balance plus net cash flow, becoming the next period's opening…AQA
Opening balance: The balance at the start of a month, taken from the previous month's closing balance.AQA, OCR, Pearson Edexcel
Operating expenses and interest: Indirect costs such as rent, insurance, marketing, and borrowing costs.Pearson Edexcel
Operational continuity: Full-time workers build deep product knowledge, continuity and loyalty, and are easier to schedule for core hours.AQA
Operational efficiency: Creating a streamlined process where goods flow smoothly without delay by eliminating waste and unnecessary costs.AQA
Operational interdependence: Linked stages where a stoppage at one point halts the whole line, so balanced stages, reliable suppliers and effective quality control are needed.AQA
Operational methods to reduce pollution: Actions such as insulating buildings, scheduling noisy deliveries away from peak hours, switching to electric vehicles, servicing engines and using cleaner…AQA
Operational risk: No buffer against late deliveries, supplier failure or sudden demand rises, so production can halt and customer goodwill suffer.AQA
Operational risk and business resilience: A late delivery, supplier failure or unexpected surge in demand can halt production and lose sales, so it suits businesses with dependable suppliers and…AQA
Operational staff: The employees directly involved in producing the business's goods or delivering its services.Pearson Edexcel
Opportunity cost: The value of the next best alternative forgone when a choice is made.AQA
Opportunity cost of planning time and money: Planning takes time and money, and the time and money spent preparing and updating the plan is a drawback.AQA
Opportunity identification: Spotting a gap in the market, such as noticing that local students need affordable tutoring.AQA
Optimum scale: The scale beyond which diseconomies set in, so that unit costs rise rather than fall.AQA
Organic growth: Growing internally by increasing sales, opening new outlets or launching new products, which is usually slower but lets the business keep control, its own…AQA, OCR
Organisation: Planning, managing time and resources effectively, and keeping records.AQA
Organisational hierarchy: The layers of a business's structure, which a tall structure has many of and a flat structure has fewer of.AQA
Organisational purpose: The type of business, such as a not-for-profit organisation, which may prioritise social or environmental outcomes over profit.AQA
Organisational structure: The way a business arranges its employees, roles and reporting lines so work is coordinated and controlled.AQA
Organising resources: Gathering the necessary land, labour, and capital, such as hiring staff or renting a premises.Pearson Edexcel
Original ideas: A completely new invention or concept that creates a new market or solves a previously unaddressed problem.Pearson Edexcel
Outdoor advertising: Large advertisements placed beside roads or in busy public areas, seen by passing traffic or pedestrians.AQA
Outsourcing: Paying another business to complete tasks, so the original business loses direct control and quality depends on the supplier's standards and communication.AQA
Overdraft: A short-term source that lets a business withdraw more than its bank balance, aiding cash flow.OCR, Pearson Edexcel
Overdrafts: Flexible, short-term finance to cover cash flow shortages that usually incurs high interest rates.Pearson Edexcel
Overtrading: When a business expands too quickly without having the financial resources (cash) to support the expansion.OCR
Owners: Stakeholders who provide capital, bear risk and expect a return on investment.AQA
Ownership and control: Sole traders decide alone, partners share decisions, and companies are run by directors accountable to shareholders.AQA

P

Partnership: A business involving two or more owners sharing the workload and capital, but partners may disagree and also face unlimited liability.AQA, OCR, Pearson Edexcel
Pay and benefits: A job share divides one full-time role between two or more people who each work part time and share the duties, pay and benefits in proportion.AQA
Payment systems: Modern systems, including contactless cards and digital wallets, that offer convenience and speed for customers and ensure secure, traceable transactions for…Pearson Edexcel
Payment terms: Terms and credit periods that influence cash flow.AQA
Penetration pricing: Setting a low initial price to attract customers and gain market share quickly, which may reduce short-term profit.AQA
Perceived value: The value of a purchase raised by a gift, which can raise demand without changing the price.AQA
Performance measurement: Objectives provide a basis for measuring success or deciding to change strategy, allowing progress to be reviewed against clear criteria.AQA
Person specification: A document detailing the skills, qualifications, and experience required of the ideal candidate.AQA, OCR, Pearson Edexcel
Person-job fit: The candidate whose skills, experience and attributes best match the job, raising the chance of a good fit.AQA
Personal objectives: Goals that are often a mix of financial and personal aims, such as being their own boss or pursuing an interest.AQA
Personal savings: A low-risk, interest-free source of finance commonly used by start-up entrepreneurs.Pearson Edexcel
Piece-rate Pay: A payment system where workers are paid a fixed amount for every item they produce.Eduqas, OCR
Place: One element of the marketing mix that a point of sale display supports because it uses the retail outlet itself as the promotional medium.AQA, Pearson Edexcel
Place and e-commerce distribution: Customers order through a website or app and goods are delivered, so a small firm can sell nationally without many shops.AQA
Poor communication: Messages pass through more layers of management, so instructions become distorted or delayed.AQA
Positive and negative consequences of business decisions: A decision can produce gains for some groups, such as higher dividends for shareholders, and losses for others, such as redundancy for employees.AQA
Positive cash flow: Inflows exceed outflows in a period, giving a net cash surplus.AQA
Post-sales service: Service provided after a purchase, such as warranties or technical support, which is crucial for resolving issues.AQA, Pearson Edexcel
Premium pricing and profit margins: A business can charge a premium to cover higher production or service costs and protect or increase profit margins.AQA
Pressure groups: Groups that campaign for ethical or environmental responsibility and aim to influence business behaviour towards ethical and sustainable practices.Pearson Edexcel
Pressure groups and the marketing mix: Organisations that campaign to change business behaviour can force a business to change its product, lower its price, alter its promotion or change its place.Pearson Edexcel
Prevention costs: Costs such as training and better processes that stop defects arising in the first place, rather than detecting them afterwards.AQA
Prevention costs versus failure costs: Prevention costs are the time taken to prevent defects, while failure costs include recalls and rework.AQA
Prevention versus detection: Training is a prevention cost because it aims to stop defects occurring rather than finding them later.AQA
Price: The amount a business pays a supplier for each unit of a resource, such as raw materials, components or finished stock.AQA, Pearson Edexcel
Price and cost advantage: Offering lower prices by sourcing or producing where costs are lower, or by achieving economies of scale, which can attract price-sensitive customers in…AQA
Price and non-price competition: Price competition can reduce prices and profit margins, while non-price competition includes quality, branding, convenience, customer service and product range.AQA
Price as an element of the marketing mix: One of the elements of the marketing mix, alongside product, promotion and place, used by businesses when choosing pricing strategies.AQA
Price competition: Competing by lowering prices or offering discounts where competition is intense and customers can switch easily.AQA
Price elasticity of demand: The effect that determines whether a price cut can raise total revenue, because the percentage rise in quantity sold exceeds the percentage fall in price, or…AQA
Price penetration: Charging a low launch price to gain customers and market share quickly.AQA
Price reduction: Lowering the amount a customer pays for a product, as a pricing tactic within the marketing mix used to influence demand, sales volume and competitiveness.AQA
Price skimming: Charging a high initial price for a new or innovative product to target early adopters and recover development costs quickly.AQA, OCR
Price taker versus price maker: Whether a business must accept the price set by the market or can charge higher prices, which depends on the features of the market it sells into.AQA
Pricing methods: Ways of setting a price, such as adding a mark-up to unit cost, matching competitors, setting a high or low initial price, using temporary reductions or using…AQA
Pricing strategies: Choices such as penetration pricing, price skimming or competitive pricing, used when forecasting revenue at different price points.AQA
Primary research: Collects new data first-hand for the business's own purpose, for example surveys, interviews, focus groups, observation or test marketing.AQA, Eduqas, Pearson Edexcel
Primary Research (Field Research): The collection of original, new data gathered specifically for the business's current needs.OCR
Primary research methods: Methods such as mystery shopping, customer surveys and store visits used to investigate competition.AQA
Primary sector: Involves extracting raw materials from nature, such as farming, fishing, mining and forestry.AQA
Print advertising media: A physical publication in which businesses can place adverts, read by a specific audience.AQA
Private limited company (Ltd): An incorporated business with a separate legal identity that cannot sell shares on the public stock exchange; shares are only sold privately to invited…AQA, OCR, Pearson Edexcel
Private share issue: Shares are sold privately, often to family, friends or business angels, and cannot be advertised to the general public.AQA
Procurement: Buying the inputs a business needs, securing the right quality at a competitive price and building dependable supplier relationships.AQA, Eduqas, OCR
Procurement and supplier choice: Buying larger quantities to gain bulk-buy discounts and choosing cheaper suppliers, which can lower unit cost.AQA
Procurement and supplier relationships: The link to procurement means the business must build strong relationships with reliable suppliers who can deliver quickly and consistently.AQA
Product: The physical good or intangible service offered, including its design and packaging, ensuring it meets customer needs.AQA, Pearson Edexcel
Product as part of the marketing mix: The element of the marketing mix that covers what the customer receives, including packaging as part of the total offer the customer buys.AQA
Product characteristics: The key characteristics of the nature of the product or service, including whether it is a good or a service, its features, quality and branding.AQA
Product design: Covers how well the item works, its appearance, materials, safety, durability and ease of use.AQA
Product differentiation: Creating a unique selling point, such as superior design or exceptional customer service, so a business stands out from competitors.AQA, Pearson Edexcel
Product knowledge: Staff understanding the features, benefits, uses, prices and limitations of what they sell, so they can match a customer's need to the right item.AQA, OCR
Product life cycle: The stages a product passes through, including maturity and decline, during which sales can be sustained or increased by an extension strategy.AQA, Pearson Edexcel
Product life cycle stages: Growth is the stage following launch in which sales increase, often rapidly, as customer awareness and demand build.AQA
Product modification: A common approach that involves changing the product, for example through new features or packaging.AQA
Product portfolio: The complete range of products a business offers, which can be broadened by increasing the number or variety of products within that range.AQA
Product quality: Businesses must ensure products meet quality standards and that descriptions, prices and delivery promises are accurate.AQA
Product range and differentiation: Offering a wider range of products to suit different markets, or a unique product or brand that rivals cannot easily copy, reducing direct price competition.AQA
Product Recall: When a business asks customers to return a faulty or unsafe product, usually at great expense to the business.AQA, OCR
Product refreshment: Refreshing, updating or differentiating the product to slow the onset of decline, as the business decides whether to harvest, refresh or extend the product.AQA
Production method: An operational decision that can move from labour-intensive to capital-intensive production when wage costs rise.AQA
Productivity: A motivated workforce tends to be more productive, so output per worker rises and unit costs can fall.AQA
Productivity and customer service: Induction helps new employees become productive sooner and, with customer service standards, can improve customer experience.AQA
Productivity and efficiency: Skilled staff complete tasks faster and to a higher standard, which links training to productivity and efficiency.AQA
Productivity and output: Improving labour productivity is a way a business can raise efficiency, and efficiency is measured by comparing output with inputs.AQA
Productivity and unit cost: High productivity means more output per worker in a given time, which lowers average cost per unit and can raise profit.AQA
Productivity and unit costs: A capable, motivated employee completes tasks efficiently, so output per worker rises and unit costs may fall.AQA
Profit: What remains after costs are deducted, which is squeezed and may become a loss if revenue falls while costs stay the same.AQA, Pearson Edexcel
Profit and financial sustainability: A key purpose for many private-sector businesses, generating profit for owners, though not the only purpose.AQA
Profit and loss: Below break-even output total costs exceed total revenue, creating a loss; above it total revenue exceeds total costs, creating a profit.AQA, Pearson Edexcel
Profit and Loss Account: A financial document showing a business's revenue, costs, and resulting profit or loss over a past period.OCR
Profit calculation: Gross profit is revenue minus cost of sales; net profit is gross profit minus expenses.AQA
Profit distribution: Sole traders and partners keep or share profits directly, whereas companies pay dividends to shareholders and retain some profit.AQA
Profit margin: Something directly affected by price, because price affects unit cost and therefore the price a business can charge.AQA
Profit margins and trade-offs: Higher costs for sustainable materials or fair wages reduce profit margins unless prices are raised, creating a trade-off between ethics and profit.Pearson Edexcel
Profit Maximisation: The objective of making as much profit as possible (Total Revenue - Total Costs).AQA
Profit or loss: Found by subtracting total costs from total revenue, stating clearly whether the result is a profit or a loss.AQA
Profit sharing: A share of company profit distributed to employees, often at year end, so effort is tied to overall business success rather than individual output.AQA, OCR
Profitability: Profit measured in relation to another figure, such as revenue or capital invested, rather than profit alone.AQA
Profitability and margins: Judging performance by calculating key margins from income statement figures, such as gross profit divided by revenue and multiplied by 100 to give a…AQA
Promotion: One element of the marketing mix that a point of sale display supports by putting the product in front of customers at the point of purchase.AQA, Pearson Edexcel
Promotion element of the marketing mix: Television is a broadcast promotional medium that businesses use within this element of the marketing mix.AQA
Promotion mix: The promotion element of the marketing mix, within which advertising sits alongside other promotion methods.AQA
Promotion within the marketing mix: One of the 4Ps, communicating with potential customers and building awareness or image rather than directly setting price, designing the core product or…AQA
Promotional methods: Methods include advertising, sales promotions, public relations, personal selling and direct marketing, used to inform and persuade customers.AQA
Promotional mix: The blend of methods a business uses to communicate with customers: advertising, sales promotion, personal selling, public relations and sponsorship.AQA
Protected Characteristics: The nine specific traits protected by law under the Equality Act 2010 (e.g., age, race, sex).AQA, OCR
Proximity: Nearness in space, time, or relationship.AQA
Proximity to raw materials: Being close to materials, which manufacturing prioritises to minimise transport costs.Pearson Edexcel
Proximity to the market: Being near customers, which reduces transport time and cost and is important for perishable goods or bulky items.AQA, Pearson Edexcel
Psychographic Segmentation: Dividing a market based on consumer lifestyles, values, attitudes, and personalities.AQA, OCR
Public disclosure: A plc must publish its accounts and other information, so competitors and the public can see its financial position.AQA
Public limited company (plc): An incorporated business ownership structure suited for large, growing businesses that can offer its shares to the general public via a stock exchange.AQA, OCR, Pearson Edexcel
Purchasing economies: Cost advantages that arise from bulk buying, which can lower the price paid per unit of raw materials or stock.AQA
Purchasing economies of scale: Cost advantages from a bigger business buying in bulk, negotiating lower prices per unit, obtaining trade discounts and reducing delivery costs per item.AQA
Purpose and direction: Objectives give direction so that owners, managers and employees know what to prioritise.AQA
Purpose of business activity: Every business carries out basic functions that turn inputs into outputs customers will pay for.AQA

Q

Qualitative data: Descriptive data focusing on opinions and feelings, often gathered through focus groups.AQA, OCR, Pearson Edexcel
Qualitative detail: Rich information from the discussion that allows follow-up questions and insight into why customers feel a certain way.AQA
Qualitative findings: Non-numerical data, such as opinions, reasons and attitudes, interpreted by identifying themes, attitudes and the reasons behind customer behaviour.AQA
Qualitative market research: Research that uncovers reasons, feelings and detail through follow-up questions, which tick-box surveys miss.AQA
Qualitative research: Explores opinions, motivations and feelings, producing non-numerical data such as interview comments or open-ended questionnaire responses.AQA
Quality: Fitness for purpose, reliability, durability and consistency with the specification for goods, and courtesy, responsiveness, accuracy, timeliness and a…AQA, OCR
Quality and customer satisfaction: Training reduces errors and improves consistency, and trained staff have the knowledge and skills to serve customers well, improving satisfaction, loyalty and…AQA
Quality and reputation: Offering better quality through design, materials, reliability or customer service, building a reputation that can justify a higher price and encourage repeat…AQA
Quality and service: Motivated employees produce better quality and give better customer service, which can raise sales and reputation.AQA
Quality as an investment: Quality spending should be treated as an investment that can lower long-term failure costs.AQA
Quality Assurance: Building quality into every stage of the process, aiming to prevent errors before they occur, which is proactive because it prevents defects.Eduqas, OCR, Pearson Edexcel
Quality Assurance (QA): The process of building quality checks into every stage of production to prevent errors from occurring.OCR
Quality assurance in service delivery: Prevention and consistent processes matter more than inspection after delivery, using standards, monitoring, feedback and staff development to reduce…AQA
Quality Control: Inspecting products at the end of the production process to identify defects, which is reactive because it finds defects.AQA, Eduqas, Pearson Edexcel
Quality Control (QC): The process of inspecting products at the end of the production process to ensure they meet standards.OCR
Quality control versus quality assurance: Quality control checks output after production, while quality assurance builds quality into every stage.AQA
Quality management: A business's wider quality approach, in which inspection costs must be balanced against prevention costs and failure costs.AQA
Quality of output and customer service: Trained, committed staff make fewer errors and treat customers well, supporting sales and reputation.AQA
Quality problems: Gaps between what a customer expects and what a business actually delivers.AQA
Quantitative analysis: The use and interpretation of numerical business information that can be measured and analysed statistically.Pearson Edexcel
Quantitative data: Numerical data that can be analysed statistically, such as finding the percentage of customers who prefer a specific product.AQA, OCR, Pearson Edexcel
Quantitative findings: Numerical data, such as percentages, averages or sales figures, interpreted by reading values, comparing groups and identifying trends or patterns in the…AQA
Quantitative research: Measures quantities and patterns, producing numerical data such as sales figures, website visits or closed-questionnaire percentages.AQA
Quantitative vs qualitative data: Quantitative data supports objective business decisions, while financial information excludes qualitative variables, such as employee motivation or brand…Pearson Edexcel
Question design bias: Inaccurate answers that may arise if questions are poorly designed or biased, so clear, neutral wording and a logical order are used to avoid leading…AQA
Questionnaire: A market research method that asks a set of written or spoken questions to gather information from respondents.AQA

R

Raising finance: A reason for planning because lenders and investors want evidence that the business is viable and that borrowed money can be repaid.AQA
Reach: One of the factors managers weigh, alongside cost per contact, control over the message and measurability, before choosing a combination.AQA
Recruitment: The process of finding and attracting suitable people to fill job vacancies.AQA, OCR
Recruitment pool: Part-time contracts can widen the applicant pool to carers, students and parents.AQA
Recruitment process: The process of attracting candidates to fill a vacancy.AQA
Reduced staff motivation: Workers may feel like a small part of a large machine, with less recognition and weaker team spirit, raising absenteeism and turnover.AQA
Reducing business risk: Replacing guesswork with evidence reduces the risk of costly mistakes, such as launching a product nobody wants.AQA
Reducing business risk and informing decisions: Reducing the risk of poor business decisions and informing the marketing mix.AQA
Reduction in revenue: A fall in the total income from sales compared with an earlier period or with the level expected.AQA
Redundancy: Requires fair reasons and procedures, including consultation and notice, to avoid tribunal claims.AQA
Regulation: Government rules that create pressures on businesses in relation to global warming.AQA
Relationship between sales and profit: Sales growth is not the same as profit growth, because extra sales may bring extra costs.AQA
Relative market share: One of the two axes used to sort a firm's products in the Boston Box, alongside market growth rate.AQA
Relevance, accuracy and timeliness of information: Findings are only useful if they are relevant, accurate and timely, because poor-quality information can mislead managers.AQA
Reliability: The consistency and dependability of a supplier in meeting agreed delivery times, quantities and quality standards over repeated orders.AQA
Reliability and bias: The quality of online data varies, it may be out of date, and competitors' information can be biased or incomplete.AQA
Reliability, lead times and customer satisfaction: Agreeing lead times and order quantities brings fewer production stoppages, faster delivery and stronger customer trust.AQA
Reminding: Keeping an existing product in customers' minds to encourage repeat purchase.AQA
Reorder level: The point at which new stock is ordered.Pearson Edexcel
Repeat custom: What strong product knowledge helps build through accurate advice and trust, while weak knowledge can lose it.AQA
Repeat custom and customer loyalty: Meeting needs encourages purchases, repeat custom and positive word of mouth, which supports revenue and survival.AQA
Repeat custom and revenue: Regular customers provide reliable revenue and are cheaper to keep than to attract anew, so losing them matters for a small business.AQA
Repeat custom and revenue growth: Satisfied customers return, so repeat custom raises revenue and makes sales more predictable.AQA
Repeat purchase: One of the main routes to further sales once most potential buyers already know the product, alongside new segments or taking share from rivals.AQA
Repeat purchase and loyalty: Satisfied customers are more likely to buy again, recommend the business and tolerate minor problems, which supports sales, reputation and survival.AQA
Repeat purchasing and retention: Loyalty shown by repeat buying and resistance to switching, and it can be measured by repeat purchase rate or retention rate.AQA
Reporting requirement: The duty on businesses to report and keep records of serious accidents and incidents.AQA
Representative sample: A sample that represents the target market, helping to reduce bias so survey findings can be trusted.AQA
Reputation: Something valuable because it influences whether people choose a business in the first place, and it can be poor when negative comments spread.AQA
Reputation and compliance: Failure can lead to legal penalties, compensation claims, damaged reputation and reduced customer loyalty.AQA
Reputation and customer expectations: Meeting what customers expect of a business and protecting how it is regarded.AQA
Reputation and measurement: Limitations include negative public comments, changing platform rules and difficulty proving that posts caused sales.AQA
Reputation with customers: A stronger reputation and appeal to environmentally conscious customers, which is a benefit of environmental measures.AQA
Research and development: The systematic investigation and experimentation a business undertakes to create new products or improve existing ones.AQA
Research and development costs: High spending on developing a new product, which may not be recovered if sales are weak.AQA
Resource allocation: Choices about production, investment and resource allocation are underpinned by opportunity cost.AQA
Resource allocation and prioritisation: Objectives help a business decide priorities when resources are limited.AQA
Resource and energy use: Cutting energy and water use and using sustainable raw materials to reduce harm to the natural environment.AQA
Resource efficiency: A coordinated mix uses resources efficiently, while inconsistency wastes money.AQA
Responsiveness to market change: Directing what is produced, how much is made, which segments are targeted and how resources are allocated in response to market research.AQA
Retained profit: Profit kept after tax and dividends and reinvested in the business; it is internal and avoids interest but may be insufficient and has opportunity cost.AQA, OCR, Pearson Edexcel
Retention: Keeping existing staff, which improved motivation from training and development can significantly increase.OCR, Pearson Edexcel
Retraining: Training employees to use new technology so the workforce remains competent, efficient and adaptable to changing market demands.Pearson Edexcel
Return on investment: Difficulty measuring this is a drawback of promotional methods.AQA
Return on Investment (ROI): A measure of the profitability of an investment, calculated as a percentage of the original cost.OCR
Revenue: The money a business receives from selling its output, calculated as selling price × quantity sold.AQA, Pearson Edexcel
Revenue and profit: Revenue is price multiplied by quantity sold, and a higher price may raise margin per unit but reduce total units sold.AQA
Revenue and profit from existing customers: Repeat purchasing raises sales revenue and profit, and existing customers often cost less to serve than new customers.AQA
Reward: Some risk is unavoidable and can bring this, as entering a new market may fail but success can raise sales and market share.AQA, OCR, Pearson Edexcel
Reward methods: Motivation can come from financial rewards such as pay and bonuses, or non-financial methods such as praise, promotion, job rotation and autonomy.AQA
Rising demand and sales growth: Demand is being established, so the business works to build awareness and repeat purchase as sales rise.AQA
Risk: The chance that an event harms performance or causes loss, and it can be reduced by research, contingency planning, buffer stock, diversification and cash…AQA, OCR, Pearson Edexcel
Risk and cash-flow pressure: Weighing risk and the cash-flow position when choosing between sources such as internal funds, which avoid debt but may be insufficient.AQA
Risk and reward: Taking calculated risks in pursuit of profit, with entrepreneurs often investing personal savings and possibly losing money if the business fails.AQA
Risk and uncertainty: Greater uncertainty about how a candidate will perform is a drawback of external recruitment.AQA
Risk and uncertainty in business: Starting a business involves significant risks, such as financial loss or failure.AQA
Risk assessment: A key duty of employers that identifies hazards and controls risks so far as is reasonably practicable, although some risk may remain.AQA
Risk management and decision making: Planning forces the owner to think about risks and helps the owner set clear objectives and make informed decisions.AQA
Risk of an inconsistent image: An image that conflicts with what customers actually experience can damage trust and reduce future sales.AQA
Risk reduction: The purpose of market research is to reduce the risk of business decisions by finding out what customers want and what competitors offer.AQA
Role of operations in goods and services: In manufacturing, raw materials are transformed into tangible products; in services, people, facilities and information are organised to deliver an experience.AQA
Royalties: Ongoing payments from their revenue that the franchisee must pay, which reduce profit margins compared to an independent start-up.Pearson Edexcel

S

Salary: A fixed annual sum, paid monthly, so income is predictable but overtime is usually unpaid.AQA
Sales growth and brand image: Increasing sales and market share, perhaps by encouraging repeat purchase or attracting new segments, and helping to build a brand image and customer loyalty.AQA
Sales promotion: Short-term incentives that encourage customers to buy now or buy more, usually time-limited unlike ongoing advertising or public relations.AQA
Sales revenue: Increased when good quality leads to repeat purchases, positive word-of-mouth and a stronger brand.AQA
Sales volume: The number of units sold, which a 2 for 1 offer aims to increase and which is compared during and after the promotion.AQA
Sales, costs and profit: Sales and profit behave differently at each stage, for example profit may be negative at introduction because of high launch costs.AQA
Sample: A proportion of the population chosen to represent the market as a whole in a research study.OCR
Satisfactory Quality: Goods must not be faulty or damaged when received, and must be durable and safe.OCR
Satisfying customer needs: Designing and delivering a product, service or experience that meets expectations at a price and quality customers accept.AQA
Scarce resources: Inputs whose supply is limited relative to demand, such as timber, water, energy or skilled labour.AQA
Scarcity and choice: Resources such as money, time, labour and machinery are limited, so choosing one use means giving up another.AQA
Secondary research: Reading existing articles, industry reports or competitor adverts in the printed press to gather data, where the data was originally collected for another…AQA, Pearson Edexcel
Secondary Research (Desk Research): The use of existing information that has already been collected by someone else.OCR
Secondary research methods: Methods such as competitor websites, published accounts and industry reports used to investigate competition.AQA
Secondary sector: Involves manufacturing and processing raw materials into finished or semi-finished goods, such as car assembly, baking and clothing production.AQA
Segmentation: Dividing a whole market into smaller groups of buyers who share similar characteristics or needs.AQA
Selecting relevant financial data: Choosing relevant figures from the income statement or statement of financial position rather than quoting the whole statement.AQA
Selection: The process of assessing candidates and choosing the most suitable one for the job.OCR
Selection methods: Choosing the best candidate, using methods such as application forms, CVs, cover letters, interviews, tests, and references.AQA
Self-learning: Employees take initiative to develop at their own pace, often using digital resources or independent research.Pearson Edexcel
Selling assets: An internal source that raises funds by disposing of items the business no longer needs, such as outdated machinery, but removes those resources from the…Pearson Edexcel
Senior managers: Those responsible for specific departments and for translating the directors' strategy into tactical plans.Pearson Edexcel
Separate legal entity: A company is a separate legal entity from its owners, which is why shareholders have limited liability.AQA
Separate legal identity: The company is separate from its owners, so the company itself can own assets, sign contracts and be sued.AQA
Service: An intangible offer, such as a haircut or a bus journey, that a business provides for customers to buy.AQA
Service standards and consistency: Service standards, such as answering calls within a stated time, can be set and published to support the consistent delivery of what a customer expects.AQA
Services: Intangible activities performed for a customer, such as a haircut or a bus journey, which cannot be stored.AQA, Pearson Edexcel
Setting objectives: A reason for planning because it turns aims into measurable targets such as sales, profit or market share.AQA
Setting up a new business: A reason for planning because it forces the owner to test the idea, estimate costs, revenue and cash needs, and reduce the risk of failure.AQA
Share capital: An external source that involves selling ownership stakes and provides finance without the need for repayment, but requires giving up a percentage of business…OCR, Pearson Edexcel
Shared ownership and control: A business owned by two or more people who share ownership, capital, profits, and decision-making under a partnership agreement.AQA
Shareholder: An individual or institution that owns a percentage of a limited company.AQA, OCR
Shareholders: One type of stakeholder who own part of the business.Pearson Edexcel
Short-term finance: Borrowing short term on the current account by arranging an overdraft, which is quick but carries interest and fees.AQA
Short-term versus long-term: Distinguishing between short-term costs and long-term benefits, as a trade-off may reverse over time.AQA
Short-term versus long-term decision making: Weighing short-term profit loss against long-term reputation, customer loyalty and legal risk.AQA
Short-term versus long-term impact: An effect may be short term, such as a price rise, or long term, such as reputation damage.AQA
Short-term vs long-term financing: Distinguishing between sources suited to short-term needs and those suited to long-term needs, since using an overdraft for a long-term investment is usually…AQA
Short-term, medium-term and long-term finance: Sources are matched to a time frame, such as a short-term overdraft or trade credit for working capital, medium-term leasing or hire purchase for equipment,…AQA
Situations of minimal or no competition: These include a local monopoly such as the only convenience store in a remote village, a patent-protected pharmaceutical, a sole supplier of a specialised…AQA
Skills, staffing and data security: There are impacts on staffing and skills, such as remote working and new training needs, and a business moving online must invest in websites, training and…AQA
Social and environmental responsibility: Social and ethical performance, such as fair trade practices or community involvement, and environmental sustainability, such as reducing carbon emissions or…AQA
Social Enterprise: A business with primarily social objectives whose surpluses are principally reinvested for that purpose.AQA, OCR
Social media: A tool for marketing and communication that provides a platform for targeted advertising and direct customer engagement.Pearson Edexcel
Social media promotion: The use of online platforms where users create, share and interact with content to communicate with customers.AQA
Social objectives: Non-financial aims focusing on qualitative outcomes, such as reducing environmental impact.Pearson Edexcel
Sole trader: A legal structure that may suit low-risk, low-cost ventures, and whose owner has unlimited liability.AQA, OCR
Sources of finance: Sole traders rely on personal savings, loans and retained profit; partnerships pool capital; Ltds and PLCs can issue shares, with PLCs able to raise larger…AQA
Span of Control: The number of subordinates directly managed by a supervisor; a narrow span allows close supervision, while a wide span gives independence.AQA, Eduqas, OCR
Speed, cost and reach of messages: Messages can be faster, cheaper and reach many people at once, and some tools allow two-way replies.AQA
Sponsorship: A promotional method in which a business pays money, or provides goods, services or expertise, to support an event, team, individual, venue or cause.AQA
Staff retention: Motivated staff stay longer, which lowers recruitment and training costs.AQA, OCR
Staff retention and cost control: New starters who understand expectations are less likely to leave early, lowering recruitment and training costs.AQA
Staff retention and recruitment costs: Strong staff retention means fewer leavers, so recruitment, selection and training costs fall and experienced staff stay.AQA
Staff training: The process of developing employees' skills, knowledge and attitudes so they can perform their roles to the required quality standard.AQA
Staff training and empowerment: Staff can be recruited and trained in product knowledge and courteous communication, and front-line staff can be empowered to resolve issues quickly without…AQA
Staff Turnover: The rate at which employees leave a business and need to be replaced.AQA, OCR
Staff turnover and replacement: A business needs to recruit when staff leave through resignation or retirement.AQA
Staffing flexibility: Part-time staff give flexibility for peaks such as weekends or lunchtimes and allow longer opening hours without paying for idle time.AQA
Stages of the product life cycle: The model has four main stages: introduction, growth, maturity and decline.AQA
Stakeholder: Any individual, group, or organisation that has a direct interest in, or is affected by, the activities and performance of a business.AQA, OCR, Pearson Edexcel
Stakeholder and social purposes: Purposes other than profit, such as survival, growth, providing a livelihood, serving a social mission or benefiting the community.AQA
Stakeholder complaints and regulation: Fewer complaints, lower fines and better reputation are benefits that may justify the spending.AQA
Stakeholder conflict: Arises when stakeholder interests clash, for example a pay rise for employees may reduce shareholder dividends.AQA, OCR
Stakeholder conflict and trade-offs: One action produces different impacts for different groups, so a judgement is needed about which stakeholder is most affected and why.AQA
Stakeholder decision-making: Helping owners, investors, lenders and others to make informed decisions, such as assessing profitability before buying shares or deciding whether to grant a…AQA
Stakeholder expectations: An influence on objectives, where a sole trader may prioritise personal income whereas a public limited company may prioritise shareholder returns.AQA
Stakeholder groups and their differing objectives: Groups such as owners/shareholders, employees, customers, suppliers, local community and government, on whom the effects of business activity fall unevenly.AQA
Stakeholder impact: The consequences of a decision for groups such as employees, customers, suppliers or local communities, who may gain while shareholders may lose short-term…AQA
Stakeholder influence: The varying ability of groups or individuals affected by a business's actions to shape its objectives and decisions.AQA
Stakeholder influence and social responsibility: Some businesses prioritise social impact over shareholder returns.AQA
Stakeholder influence on objectives: The way pressures from stakeholders change as a business evolves, altering what is achievable and desirable.AQA
Stakeholder interests: The concerns of each group, such as owners seeking returns and growth, employees seeking secure employment and fair pay, and customers wanting quality…AQA
Stakeholder objectives: The specific goals that shareholders (owners), employees, customers, managers, suppliers, the local community, pressure groups and the government pursue when…AQA, Pearson Edexcel
Stakeholder perspectives: Viewing results through different stakeholders' eyes, such as shareholders wanting profit and dividends and employees wanting job security and fair pay.AQA
Stakeholder perspectives on success: Different stakeholders, such as owners, employees, customers and the community, may prioritise different success measures.AQA
Stakeholder power and dependency: The strength of influence depends on factors such as the stakeholder's power, the size of their stake, how organised they are and how much the business…AQA
Stakeholder trust and customer loyalty: Benefits that good PR builds, alongside a positive brand image, while poor PR can damage sales and reputation quickly.AQA
Stakeholder use of financial information: Stakeholders assess performance by comparing figures across years or against rivals.AQA
Stakeholders: Groups with a vested interest in a business, which are affected by business activity and can impact business activity.AQA, Pearson Edexcel
Standardised output: Large volumes of identical items, such as bottled drinks or cars, suited to machinery and workers repeating the same task.AQA
Star: A product in a high-growth market with high relative market share, which usually needs investment to keep pace but can become a future cash cow.AQA
Statement of financial position: The component that lists assets, liabilities and equity at a single date.AQA
Stereotyping and inclusivity: A risk that gender labels stereotype and can miss buyers whose tastes do not match the label, so many firms now blend gender with age, income or lifestyle.AQA
Stock control: An operational decision that can involve holding buffer stock when suppliers become unreliable.AQA
Stock turnover: A measure businesses monitor alongside lead times and delivery performance to judge how procurement and logistics affect performance.AQA
Stockouts: A situation caused by unreliable suppliers where stock runs out, leading to lost sales and idle staff.AQA
Strategic planning and review: Adjusting plans and resources accordingly when objectives change, so that marketing, operations, finance and human resources may need new targets, budgets and…AQA
Strategies for risk minimisation: Activities businesses can undertake include conducting thorough market research to validate customer demand, developing a detailed business plan to secure…AQA
Structure of a plan: The main sections usually include the business idea and objectives, the product or service and its market, marketing and operations plans, the finance needed…AQA
Subordinates: Employees who are below a manager in the hierarchy and report directly to them.OCR
Suitability of pricing methods for a given business context: Judging whether a pricing method suits the objectives, market and resources of a given business.AQA
Supervisors and team leaders: Those who manage day-to-day tasks, allocate work and monitor the performance of operational staff.Pearson Edexcel
Supplier negotiation: A way buyers can improve the price obtained, alongside bulk buying or payment terms, and may use several suppliers to keep competitive pressure.AQA
Supplier relationship management: Working with suppliers to ensure that key processes are running efficiently and cost effectively.AQA
Supplier relationships: An operational decision that can involve using more than one supplier to reduce dependence on a single source.AQA
Supplier relationships and consistency: Supplier partnerships that require reliable incoming materials, often through long-term relationships.AQA
Supplier reliability and service levels: A cheaper supplier may bring slower deliveries, less reliable components or poorer after-sales support.AQA
Supplier selection: Choosing a supplier by comparing quotations, negotiating discounts for bulk orders and weighing price against quality, reliability and delivery.AQA
Suppliers: A stakeholder group that relies on prompt payment and regular, profitable orders, requiring reliable contracts and timely payments to maintain their own cash…AQA, Pearson Edexcel
Supply chain: The connected network of organisations and activities that transform raw materials into goods and services delivered to customers.AQA, OCR
Supply-chain risk: Risks such as transport costs, tariffs, exchange-rate changes, supply-chain disruption and ethical or environmental concerns.AQA
Surplus: Money that is retained and reinvested into the organisation's mission, not distributed as dividends to owners or shareholders.AQA
Survey: A market research method that gathers data from many respondents using a fixed set of questions, so results can be counted and compared.AQA
Survival: The primary short-term financial objective for most new startup businesses, prioritised in the critical first year.AQA, OCR, Pearson Edexcel
Sustainability: Operating so that resources used today do not prevent future generations from meeting their needs.AQA, Eduqas, OCR
Sustainability and resource stewardship: Allocating scarce resources responsibly so that environmental damage and long-term cost exposure are lowered while reputation is supported.AQA
Sustainable operations and product design: Limiting waste, using renewable or recycled materials, cutting energy and water use, and designing products that last or can be repaired.AQA

T

Takeover: One business buys control of another, giving immediate market share, customers and capacity.AQA, OCR, Pearson Edexcel
Taking risks: Investing own time and money with no guarantee of success, facing the possibility of financial loss if the business fails.Pearson Edexcel
Tall hierarchy: A structure with many layers and narrower spans of control, which can improve control but adds cost and slows communication.AQA
Tall structure: A structure with many layers of management and narrow spans of control.AQA
Target audience: A national TV campaign may miss this, which is a drawback of a promotional method.AQA
Target audience and reach: What sponsorship can achieve, with its value depending on audience fit, reach, reputation and whether the association is positive.AQA
Target customer and segmentation: Selection starts with customer understanding: who the buyers are, what they value and what they can afford.AQA
Target market: One factor that selection of the promotion mix depends on, alongside budget, product type, stage in product life cycle, competitor actions and marketing…AQA, Pearson Edexcel
Target market and audience selection: Choosing a magazine whose readers match the business's target market, since titles have specific readerships.AQA
Target market and competitor analysis: Matching the publication to the target market, for example reading reviews of competitor products in a hobby magazine read by target customers.AQA
Target market and media choice: The choice of advertising medium depends on the target market, budget, message and reach needed.AQA
Target market and positioning: Integration means the four elements work together to support a consistent market position.AQA
Target market choice: Deciding whether to target one group or both with different marketing mixes after comparing what each group buys and values.AQA
Target market selection: Choosing the group a business aims at, such as high-income professionals or lower-income households.AQA
Target market suitability: The choice of promotional method depends on the target market, along with budget, product type and business objectives.AQA
Target marketing: Aiming a product or service at a particular group, such as children, teenagers, adults or retired people.AQA
Targeted Marketing: Directing promotional activities towards a specific group of consumers based on their data and behavior.AQA
Targeting: Selecting one or more of these segments to enter and focus marketing efforts upon.Pearson Edexcel
Targeting customers: Choosing which group to serve so that marketing focuses on a chosen group rather than the whole market.AQA
Targeting, reach and cost: Strengths of social media promotion include low cost, wide reach and precise targeting.AQA
Tariffs: Taxes placed on imported goods, which increase their selling price and make imports less competitive.Pearson Edexcel
Technical economies of scale: Cost advantages from production methods such as specialist machinery, automation and division of labour, spreading fixed costs over more units so average cost…AQA
Techniques for good customer service: Businesses recruit and train staff in communication and product knowledge, set clear service standards, respond quickly to enquiries and complaints, offer…AQA
Technological advancement: Changes in technology create opportunities for innovative products, such as the shift from physical media to streaming services.Pearson Edexcel
Technological and economic impacts on marketing: Technological changes drive marketing towards e-commerce, social media advertising and data-driven targeted promotions, while the economic climate dictates…AQA
Technology: Changes how goods are made, marketed and sold, so firms that ignore new software, machinery or online selling can lose competitiveness.AQA
Telesales: Selling products directly to customers by telephone, sitting within the place element of the marketing mix.AQA, OCR
Tertiary sector: Provides services to consumers and other businesses, such as retail, banking, hairdressing and transport.AQA
The 4Ps: product, price, promotion and place: The marketing mix is the combination of product, price, promotion and place.AQA
Time specificity of financial data: Because the snapshot is dated, figures change the next day as stock is sold or a loan is repaid, so comparisons need the date stated.AQA
Timing of cash receipts and payments: Distinguished from profit, which is revenue minus costs, because a profitable firm can still face a cash flow problem if customers pay on credit.AQA
Total cost and average cost calculations: Total costs are fixed costs plus variable costs, and average cost is total cost divided by output.AQA
Total cost of ownership: The total cost of buying and using the input, not just the invoice price, including transport, storage, waste and administration.AQA
Total costs: Fixed costs, which remain constant regardless of output, added to variable costs, which change with production levels.AQA, Pearson Edexcel
Total net cash flow: Found by summing annual net cash flows, which are cash inflows minus cash outflows, over the project's life.AQA
Total profit: Obtained by subtracting the initial investment from total net cash flow.AQA
Total Quality Management (TQM): A whole-business approach to quality where all employees are involved in continuous improvement and aiming for zero defects.AQA
Total Quality Management as a whole-business approach: Everyone in the business, from shop-floor workers to managers, is involved in continuously improving processes and preventing defects rather than detecting…AQA
Trade blocs: Groups of countries that agree to reduce or eliminate trade barriers between themselves while maintaining them against non-members.Pearson Edexcel
Trade credit: Delaying payment to suppliers, which improves cash flow but may incur penalties or damage supplier relationships.AQA, OCR, Pearson Edexcel
Trade descriptions: Law making it a criminal offence to apply a false trade description to goods, such as claiming a product is genuine leather when it is synthetic.AQA
Trade-off: A situation arising when a sustainability measure raises costs or lowers revenue, reducing short-term profit.AQA, OCR
Trade-off between cost and reputation: These actions raise costs but can lower complaints, avoid fines and improve reputation.AQA
Trade-offs: Balancing efficiency against other objectives such as reliability and quality, because over-focus on cost can lead to disruptions.AQA
Trade-offs and risk: Consider trade-offs, such as discounting raising volume but harming prestige, and note any risk or limitation.AQA
Trade-offs between cost, speed and quality: Excessive inspection can slow production and add cost without improving customer value.AQA
Trade-offs between profit and environmental responsibility: Weighing the short-term costs of responsible resource use against long-term benefits such as lower waste, resilience and reputation.AQA
Trade-offs between supplier factors: Weighing factors against each other, for example low price may mean slower delivery, raising stockholding costs.AQA
Trading Standards: The local government departments that investigate consumer complaints and enforce consumer law.OCR
Traffic congestion: Occurs when too many vehicles use a road network at the same time, so journeys slow down and queues build.AQA
Training: The process of increasing the knowledge and skills of the workforce to enable them to perform their jobs effectively.AQA, OCR
Training methods: The ways of training split into on the job, where employees learn while doing real work under supervision, and off the job, where learning happens away from…AQA
Trend analysis: Comparing performance with previous years to spot trends, such as a rising gross profit margin.AQA
Trust built through service quality: Good customer service repeatedly meets or exceeds expectations, so the buyer trusts the firm and finds dealing with it easy.AQA
Truthful marketing and labelling: Advertising and labelling must be accurate and not misleading.AQA

U

Uncertainty: When the outcome is unknown or unpredictable, such as changes in consumer tastes, economic conditions, new technology or government policy.AQA
Uncertainty and decision-making: These factors mean that business decisions are made without complete information, so plans may not achieve expected results.AQA
Understanding competitors and competitive advantage: Gaining insight into competitors' strengths, weaknesses, pricing, products and market positioning.AQA
Understanding customer needs and behaviour: Gaining insight into customers' needs, wants, preferences, buying behaviour and satisfaction levels.AQA
Unemployment: Counts people actively seeking work without a job, and higher unemployment can follow redundancies in a downturn.AQA, OCR
Unfair dismissal: Protection from unfair dismissal and redundancy applies, and dismissal must follow fair, lawful procedures or the business risks a tribunal and compensation.AQA
Unique selling point: A feature that makes a product or service stand out from rivals in a competitive market.AQA
Unique Selling Point (USP): A feature that makes a product or service stand out from competitors and answers why customers should choose this offer rather than a rival's.AQA, Eduqas, OCR
Unique selling points: Features that differentiate the product from competitors.Pearson Edexcel
Unit cost: The average cost of producing one unit, calculated as total costs divided by output.AQA
Unit sales: The volume of goods and services a business sells over a period.AQA
Unlimited liability: A key disadvantage for sole traders and partnerships, meaning owners are personally responsible for business debts and risk personal assets if the business…AQA, OCR, Pearson Edexcel
Upselling, cross-selling and loyalty rewards: Methods firms use to encourage increased spend.AQA
Use by lenders and investors: Lenders and investors read the plan to judge viability and risk.AQA
Use of customer data to personalise service: CRM software stores purchase histories and preferences, so staff can personalise offers and resolve issues faster.AQA
Using information for business decisions: Analysing collected information to support decisions such as what to sell, what price to charge and where to locate.AQA

V

Value and willingness to pay: Customers perceive greater value in higher quality and are willing to pay more for reliability, durability, performance or prestige.AQA
Value creation and profitability: Creating value for both customer and firm, as customers gain goods or services that meet needs while the business builds demand, sales and repeat custom.AQA
Value for money: The overall worth of the purchase to the business, judged against the needs of the operation, so the cheapest option is only best when it meets the required…AQA
Variable costs: Costs which vary with output and which combine with fixed costs to make total cost.AQA
Variance Analysis: The process of comparing actual financial outcomes with the budgeted figures to identify differences (variances).OCR
Variation of aims between businesses: A new sole trader may aim simply to survive, whereas an established plc may aim to maximise profit or increase market share.AQA
Venture Capital: An external long-term source involving expert investors seeking high returns.AQA, OCR, Pearson Edexcel
Venture Capitalist: An investor who provides capital to start-up ventures or supports small companies that wish to expand, usually in exchange for equity (shares).OCR

W

Wage: Pay per hour worked or per unit produced, so pay varies with hours worked and can reward extra effort.AQA
Want: A good or service that people desire but is not essential for survival.OCR
Wants: Desirable extras that improve life but are not essential, such as a games console or a holiday.AQA
Warehousing: Holding stock in warehouses, which reduces the stockholding burden on small retailers.AQA
Waste reduction: Eliminating inefficiencies such as overproduction, excess inventory or defective products so that goods flow smoothly without delay.AQA
Weakness in one link: A problem such as a late delivery in one link that can disrupt the whole chain.AQA
Whole-business quality culture: An approach in which every employee takes responsibility for quality at every stage, rather than relying on a final inspection.AQA
Wholesaler: A business that buys in bulk from producers and resells in smaller quantities to retailers or other businesses.AQA
Wider markets: Customers far beyond a business's local area, in other towns, regions or countries, reached because the website is open 24 hours a day.AQA
Word-of-mouth promotion and reputation: Positive word of mouth and online reviews attract new customers at little cost, lowering marketing spend per sale.AQA
Worker pay and rewards: Workers aim to maximise pay, which means seeking higher wages, bonuses or benefits from their employment.AQA
Workforce skills and quality: Training gives employees the knowledge and skills their roles demand, so goods and services reach the required standard and waste and errors fall.AQA
Working capital: Money that JIT frees by reducing the amount tied up in stock.AQA
Written statement of particulars: Must be given by employers to employees on or before the first day of work, setting out pay, hours, holiday and notice.AQA

Z

Zero-Hours Contract: An employment contract where the employer does not guarantee any minimum working hours.AQA

Where these terms come from

Each definition is one we publish on a Business GCSE topic page or study guide. Open a term to see how each exam board words it and which topic it belongs to. For the full course, go to Business revision or the glossary for every subject.

Revise Business with these terms

Create a free account to practise exam questions and get feedback on your answers.

Start free

A week of Premium from your first lesson · Then the free plan continues · No card, no charge

Business topics

A

B

C

D

E

F

G

H

I

J

K

L

M

N

O

P

Q

R

S

T

U

V

W

Z

Where these terms come from

Revise Business with these terms

Cookies on MasteryMind