GCSE AQA Business: Topics 1 Key Terms & Definitions

GCSE AQA Business Key Terms & Definitions Flashcards

Business

An organisation that provides goods or services to customers in exchange for money.

Entrepreneur

A person who takes on the financial risk of starting and managing a new business.

Enterprise

The process of identifying new business opportunities and taking risks to start a business.

Goods

Physical products that can be touched and owned.

Services

Intangible products that cannot be touched, such as education or healthcare.

Customer

A person or organisation that buys goods or services from a business.

Consumer

The person who uses the good or service.

Business Objectives

The goals a business sets, such as profit, growth, or survival.

Revenue

The income a business earns from selling goods or services.

Costs

The expenses a business incurs to operate.

Profit

The financial gain when revenue exceeds costs.

Stakeholders

Individuals or groups affected by or with an interest in the operations of a business.

Sole Trader

A business owned and operated by one person.

Partnership

A business owned by two or more people who share responsibilities and profits.

Private Limited Company (Ltd)

A business owned by shareholders with limited liability, not sold to the public.

Public Limited Company (PLC)

A company whose shares are traded publicly on the stock exchange.

Franchise

A business model where one business licenses the right to trade using its name and systems.

Franchisee / Franchisor

Franchisee runs the business using the brand; franchisor owns the brand.

Unlimited Liability

The owner is personally responsible for all business debts.

Limited Liability

Shareholders are only responsible for the money they invest.

Deed of Partnership

A legal agreement between partners in a business.

Dividends

Payments made to shareholders from company profits.

Social Enterprise

A business that aims to benefit society while making a profit.

E-commerce

Buying and selling of goods or services over the internet.

M-commerce

Buying and selling of goods or services through mobile devices.

Business Plan

A document outlining a business's goals and how they will be achieved.

Location

The place where a business chooses to operate.

Economies of Scale

The cost advantages from producing on a larger scale.

Primary Sector

Industries involved in natural resources (e.g., farming, mining).

Secondary Sector

Industries involved in manufacturing.

Tertiary Sector

Industries that provide services.

Added Value

The difference between the selling price and the cost of inputs.