Business - Unit 2 Glossary

Apps

Apps

Pieces of software designed for a specific purpose and for use on smartphones and tablets

Cloud Computing

A general term for delivery of specialist computing services provided by businesses using the internet

Competition

Exist where there are two businesses trying to attract the same type of customers

Consumer Laws

Laws that have been introduced to prevent businesses from treating their customers unfairly

consumer spending

The value of goods and services bought by consumers over a time period.

Contract of employment

a legal document that sets out the terms and conditions governing a worker's job

Digital Communication

electronic exchange of information

Discrimination

Treating one person differently from another with have a good reason to do so

e-commerce

The act of buying or selling a product usinf as electronic system

Economic Climate

describes the state of key factors within a country such as the level of goods and services produced

Economies of scale

Cost per unit decreases as output increases

Environment

The natural world in which we live

Environmental Reporting

The publication of a business's environmental performance to the general public

Environmental Responsibility

Taking of decisions by businesses, consumers, governments and other groups with the intention of protecting the environment

Ethics

Whether a businesses decision is thought to be morally right or wrong.

exchange rate

The price of one currency expressed in terms of another

Exports

Goods and Services sold to other countries

External Cost

When a business activities results in harmful effects on other people not directly involved in production.

Extranets

Communication networks that can only be accessed by other organizations such as suppliers.

fair trade products

Customers pay higher prices and offer better trading terms.

global warming

The gradual heating of Earth's surface, oceans and atmosphere

Globalisation

Trend for markets to become worldwide in scope

Growth

When a business sells increased quantities of its product

ICT

Information and Communication Technology : the computing and communication systems that a business might use to exchange information with stakeholders

Imports

goods brought into a country

Income elastic products

Products whose sales are sensitive to changes in consumer incomes

Interest rates

The cost of borrowing money or the reward for saving money

International trade

The selling of goods and services across national borders

Intranets

Communication networks which can only be accessed by an organisation's employees

Inward Investments

When governments, businesses and individuals invest capital into another country

legislation

A set of rules that governs the way society operates.

M-commerce

buying and selling of products through wireless handheld devices

Market Share

the percentage of sales in a particular market recorded by a business

Markets

exist where there are buyers and sellers

Monopoly

Exist when a business doesn't face any competition in a particular market

Motivation

Range of factors which influence the way a person behaves at work

National living wage (NLW)

An hourly rate of pay which is set by the government

Non-renewable resources

Resources that are only available in limited amounts

Overdraft

Flexible loan that a business can use whenever necessary, up to an agreed limit.

Part-time employee

works for a proportion of the working week

Pressure Group

A group of people with common interest who influence public decision by businesses and government

Price

The amount a business asks a customer to pay for a single product

product design

Translates the needs of consumers, or the creativity of entrepreneurs, into saleable product

Profits

Measures the difference between the values of a businesses revenue and it's total cost.

Quality

how good or bad something is

Recession

Occurs when the value of an economy output of goods and services falls for six months or longer.

Recycling

Re-use of raw materials used in making product

Shareholder

A person who owns shares of a company

Social media

Method of online communication. They share information and help to develop social and professional contacts.

Social Responsibility

An approach to managing business in which the interest of all groups in society are taken into account when making decisions.

Software robots

Advanced computer programs that can operate a range of administrative activities previously carried out by employees

Stakeholders

People who are affected by or affect the activities of a business

Sustainability

Methods of production which can be continued in the long term without damage to the environment.

Takeover

Occurs when one business buys control of another one

Tariff

Tax on foreign goods imported into a country

Technology

The application of knowledge and skills and techniques to improve business performance

TNC

Transnational Corporation. Produces goods and services in more than one country.

trade union

A group of workers who act together to improve their pay and working conditions

unemployment

Being available for work but not having a job or losing a job you once had

Webchat

Communicating in real time using only web browsers

What is the formula for customer spending?

Amount people spend on product / time