Business Vocab AQA GCSE

AQA GCSE business flashcards (ALL TERMS FROM SUBJECT SPECIFIC VOCAB)

Aim

The intention to reach a goal.

Air pollution

The presence of harmful substances in the air causing damage to humans, animals, plants, or the environment.

Asset

Something the business owns that has value.

Average rate of return

The average profit for the year as a percentage of the initial investment.

Boston matrix

A tool for analyzing the contribution of each product in a business’ portfolio based on market share and growth rate.

Brand image

The consumers’ perception of a brand, developed over time through advertising.

Break-even chart

A diagram that represents the relationship between total costs and total sales revenue.

Break-even output

The point where total sales equal total costs, resulting in neither profit nor loss.

Buffer stock

A reserve of raw materials to protect against unforeseen shortages.

Business plan

A detailed statement of how the business intends to operate during a specific period.

Cash

Money that the business has on hand or in the bank.

Cash flow forecast

An estimate of the cash coming in and out of the business on a monthly basis.

Cash inflow

Money received by the business.

Cash outflow

Money paid out by the business.

Centralisation

Maintaining control by keeping authority at higher management levels.

Chain of command

The line of authority in an organization from top to bottom.

Channels of distribution

The route through which ownership of a product transfers from seller to buyer.

Closing balance

The amount remaining in an account at the end of an accounting period.

Commission

A payment to an employee based on a percentage of sales achieved.

Competition

The rivalry between businesses to sell their goods/services.

Consumer law

Laws ensuring products are safe and businesses deal fairly with customers.

Consumer spending

Money spent by households on goods and services.

Contracts of employment

Legal documents outlining job terms and conditions.

Cost

Money spent by a business on goods and services.

Cost-plus pricing

Setting the price of a product above its production cost to ensure profit.

Customer

Individuals or organizations that purchase goods/services.

Customer engagement

The relationship that centers around customer requirements to build loyalty.

Customer loyalty

The likelihood of past customers continuing to buy from the business.

Customer satisfaction

The degree to which customers are pleased with goods/services.

Decentralisation

Distributing authority throughout the organization.

Delayering

Reorganizing to reduce management levels.

Delegation

Assigning tasks to individuals who are not normally responsible for them.

Demand

The quantity of a product that consumers will buy at a specific price.

Directors

Elected individuals who manage the business on behalf of shareholders.

Diseconomies of scale

Increased unit costs that can occur when a business becomes too large.

Disposal of waste

Methods of removing or recycling unwanted materials.

Dividend

A portion of profit paid to shareholders based on their shares.

E-commerce

Business transactions conducted electronically over the internet.

Economies of scale

Cost advantages gained by producing on a larger scale.

Employees

Individuals who work for the business under a contract.

Employment law

Laws relating to the rights of workers and businesses.

Enterprise

The ability to identify and act on business opportunities.

Entrepreneur

A person who initiates and manages business ventures.

Equality Act (2010)

Legislation that protects against workplace discrimination.

Ethical objectives

Business goals that contribute positively to its reputation.

Ethics

Moral principles that guide business operations.

Exchange rates

The ratio of one currency value against another.

Expansion

The process of increasing a business' size.

Export

Goods/services sold to customers in another country.

Extension strategies

Methods to prolong a product's life cycle.

External growth

Expansion through mergers or takeovers.

External sources of finance

Funds obtained from outside the business.

Factors of production

The resources needed for production: land, labor, capital, enterprise.

Fixed costs

Costs that remain constant regardless of output levels.

Flat organizational structure

An organization with few levels of hierarchy.

Flow production

Making goods continuously on a production line.

Focus groups

Small groups of target consumers discussing product preferences.

Franchising

Selling rights to use a product under specific guidelines.

Fringe benefits

Additional perks provided beyond salary.

Full time

Working the standard hours required by an employer.

Gap in the market

An unmet need in the marketplace.

Global warming

The rise in Earth's temperature caused by greenhouse gas emissions.

Globalisation

The trend of businesses operating on a global scale.

Goods

Items produced for sale to consumers or businesses.

Government grants

Non-repayable funds provided by the government.

Growth

Increase in a business' size, profits, or market share.

Health and Safety at Work Act (1974)

Legislation outlining employer and employee health responsibilities.

Hierarchy

The organizational structure showing different levels of authority.

Hire purchase

Buying items with an initial payment and installments.

Import

Goods/services purchased from foreign suppliers.

Income statement

Summary of revenue and expenses over an accounting period.

Induction

Training provided to new employees at the start of their job.

Inspection

Examining items to ensure they meet standards.

Integration

Joining together of two or more businesses.

Interest rates

The charge for borrowing money or reward for saving.

Job analysis

Determining the responsibilities and tasks of a job.

Job description

Summary of duties, responsibilities, and role title.

Job production

Creating a single product to meet a specific order.

Job share

Two employees sharing a full-time position.

Just in case (JIC)

Maintaining stock to avoid shortages.

Just in time (JIT)

Ordering materials to align with production needs.

Lean production

Reducing resource use to improve efficiency.

Level of employment

The employment rate of the working-age population.

Liability

The owner's responsibility for a business's debts.

Limited liability

Owners' liability is limited to their investment.

Loans

Fixed sums borrowed to be repaid over time with interest.

Local community

People and organizations near a business's location.

Location

The physical site of a business and reasons for its choice.

Logistics

Managing the flow of supplies and products.

Loss

Expenditure exceeding income.

Loss leader

A product sold at a loss to attract customers.

Management

Coordinating business activities to achieve objectives.

Margin of safety

The difference between actual sales and break-even sales.

Market

Where buyers and sellers interact.

Market research

Collecting data on customer needs and preferences.

Market share

The percentage of the market held by a business.

Marketing

Coordinating activities to meet customer needs.

Marketing mix

Combination of marketing activities to satisfy customers.

M-commerce

Transactions conducted via mobile devices.

Mergers

When two businesses combine.