Business Paper 1 Mock Case Study Key Terms (2 mark definitions)

Location

The geographical position of a business, crucial for profitability and survival.

Company

A business owned by shareholders who have limited liability and has a separate legal entity.

Privately held company

An incorporated business owned by shareholders with limited liability, whose shares cannot be traded publicly.

Publicly held company

An incorporated business owned by shareholders with limited liability, whose shares are openly traded on a stock exchange.

Finance

The money required for business activities, including funding operations and expansion.

Expansion

The process of growing a company's operations, revenue, market share, and profitability.

Bamboo plates & cutlery

Eco-friendly dishware and utensils made from sustainable bamboo, reducing environmental impact.

Contracts

Legally binding agreements between two parties, setting specific terms and conditions.

Covid-19 Pandemic

The global health crisis caused by coronavirus, impacting economies and the music industry.

Credit Card

A payment system allowing customers to borrow funds for purchases, repayable later.

Freelancer

A self-employed individual providing services for specific projects rather than long-term commitments.

Solar Power

Energy generated from the sun, converted into electricity and heat using solar panels.

Music Genre

A conventional category identifying pieces of music belonging to a shared tradition.

Employees

Internal stakeholders who work for a business, influencing its loyalty, motivation, and productivity.

Fee

Payments made to a professional body in exchange for advice or services.

Average cost

The cost per unit of production, derived by dividing total costs by the number of units produced.

Directors

Senior executives responsible for managing and overseeing a company's operations.

Challenge(s)

Internal or external factors that hinder an organization's operations and profitability.

Environmental sustainability

The ability of a business to maintain resource use without jeopardizing future generations.

Greenwashing

Misleading marketing tactics that falsely portray sustainable practices or products.

Interest rate

The cost of borrowing money or return on savings, expressed as a percentage.

Landfill site

A designated area for the disposal of waste materials, buried to minimize environmental impact.

Line Manager

The person directly above an employee who supervises and manages day-to-day activities.

Reservoir

A facility for storing large volumes of water for various uses like drinking and irrigation.

Temporary workers

Employees hired for a limited time or until a project is completed.

Break-even

When total revenue equals total costs, resulting in neither profit nor loss.

BTL promotion

Non-mass media promotional activities allowing direct control in targeting market segments.

Capital expenditure

Spending on acquiring, maintaining, and upgrading non-current assets.

Communication

The transfer or exchange of information, ideas, or messages.

Ethical objectives

Moral principles guiding business decision-making based on societal norms.

Job production

A production method where goods are customized to meet specific customer requirements.

Leadership

The process of influencing and inspiring others to achieve organizational goals.

Management

Achieving organizational objectives by effectively using available resources.

Sales revenue

Income received from customer purchases, calculated by multiplying price and quantity sold.

Salaries

Fixed payments made periodically to full-time or permanent staff, representing a fixed cost.

Triple Bottom Line

A sustainability framework focusing on maximizing people, planet, and profit.

Sources of finance

Various methods by which an organization obtains money, split into internal and external sources.