Business Enterprise and Marketing Vocabulary

Comprehensive vocabulary flashcards covering Business Ownership, Growth, Human Resources, Marketing, and Recruitment based on the Mitchell version 10 2026 lecture notes.

Limited liability

A concept of business ownership where the owners' financial responsibility for business debts is restricted to a specific amount.

Incorporation

The legal process of forming a company, which provides specific benefits to a business.

Business aims and objectives

Specific targets a business strives to achieve, such as profit, survival, and growth.

Stakeholders

Internal and external groups that have an interest in or are affected by business activity, including employees and owners.

Organic (internal) growth

The expansion of a business from within itself, driven by internal causes.

Inorganic (external) growth

The expansion of a business through external means, categorized as horizontal, vertical, conglomerate, or lateral.

Entrepreneur

An individual who initiates business activity and enterprise, characterized by the willingness to manage risk and reward.

Business plan

A document used for planning business activity, containing specific sections and serving as a tool for assessment and strategy.

Flat and tall structures

Two different types of organizational structures that dictate the arrangement of hierarchy and management in a business.

Span of control

The number of subordinates for whom a manager is directly responsible.

Delegation

The process of assigning authority or tasks to a subordinate within the organizational hierarchy.

Chain of command

The formal line of authority and communication that reaches from the top of the hierarchy to the bottom.

Zero-hours contracts

A way of working where the employer is not obliged to provide any minimum working hours to the employee.

Job description

A document used in recruitment that outlines the specific tasks and duties of a vacant position.

Person specification

A document used in recruitment that details the skills, qualities, and traits required in an ideal candidate.

Internal and external recruitment

The processes of filling job vacancies from within the current workforce or by seeking candidates from outside the business.

Financial methods of motivation

Monetary incentives used to encourage staff, such as salary, wage, profit share, bonus, and fringe benefits.

Induction training

Initial training provided to new workers to help them settle into their roles and understand the business.

On-the-job and off-the-job training

Methods of training that take place either at the workplace while performing the role or away from the immediate work environment.

Equality Act

Current legislation that impacts how businesses conduct recruitment and manage employment practices.

Purpose of marketing

The function within a business aimed at sales, satisficing needs, building image, persuasion, providing information, and gaining market share.

Primary research

Market research methods involving direct data collection through questionnaires, interviews, trials, and focus groups.

Secondary research

Market research sources involving existing data such as the census, websites, internal data, newspapers, and magazines.

Staff development

The process of improving employee skills and knowledge to benefit both the individual and the business.

Ways of working

The various arrangements for employee labor, including flexible working, home working, and zero-hours contracts.

Entrepreneur

An individual who takes the risk to set up a new business venture in the hope of making a profit.

Risk

The possibility of financial loss or business failure.

Reward

The positive outcomes of entrepreneurship, such as profit, independence, or personal satisfaction.

Business Plan

A written document outlining a business's objectives, strategies, financial forecasts, and market research.

Sole Trader

A business owned and managed by one person. It has unlimited liability.

Partnership

A business owned by 2 to 20 people who share the profits and responsibilities.

Private Limited Company (Ltd)

A smaller, privately-owned business where shares can only be sold privately to friends and family (not on the stock exchange). Has limited liability.

Public Limited Company (Plc)

A large business that can sell shares to the general public on the stock exchange. Has limited liability.

Limited Liability

A legal status where shareholders are only liable for the amount of money they invested if the business goes bankrupt. Personal assets are protected.

Unlimited Liability

The owner is personally responsible for all business debts; personal assets (like a house or car) can be seized to pay bills.

Incorporation

The legal process of establishing a business as a separate legal identity from its owners.

Satisficing

Aiming for a 'good enough' level of profit rather than maximizing it, often to keep stakeholders happy.

Stakeholder

Anyone who has an interest in or is affected by the activities of a business (e.g., employees, customers, owners, local community).

Organic Growth

Internal growth achieved by expanding the business's own operations (e.g., opening new stores, launching new products).

Inorganic Growth

External growth achieved by merging with or taking over another business.

Horizontal Integration

Merging with or taking over a competitor in the same industry at the same stage of production.

Vertical Integration

Merging with or taking over a business at a different stage of the same supply chain (e.g., a bike manufacturer buying a bike shop).

Conglomerate Integration

Merging with a business in a completely unrelated industry.

Market Share

The percentage of total sales in a market that is held by one specific business.

Primary Research (Field)

Gathering brand-new, first-hand data tailored to the business's specific needs (e.g., questionnaires, focus groups).

Secondary Research (Desk)

Gathering data that already exists and was collected by someone else for another purpose (e.g., internet articles, census data).

Focus Group

A small group of people brought together to discuss their opinions on a product or service.

Job Description

A document outlining the tasks, duties, and responsibilities of a specific job role.

Person Specification

A profile of the ideal candidate, listing the qualifications, skills, and experience required.

Internal Recruitment

Filling a job vacancy with an existing employee already working within the business.

External Recruitment

Hiring someone from outside the business to fill a vacancy.

Retention

The ability of a business to keep its employees working there over time rather than leaving.

Fringe Benefit

Non-monetary rewards given to employees alongside their salary (e.g., a company car, free gym membership, private health insurance).

Profit Share

A system where employees receive a percentage of the business's profits as an additional reward.

Induction Training

Training given to new employees to familiarise them with the business layout, health and safety, and company culture.

On-the-job Training

Training that takes place at the normal workstation while doing the job.

Off-the-job Training

Training that takes place away from the usual workplace (e.g., at a college or training center).

Span of Control

The number of subordinates directly managed by a single manager or leader.

Hierarchy

The layers of authority within an organization, from top management down to lower-level workers.

Chain of Command

The path through which orders and communication are passed down from senior managers to lower-level staff.

Delegation

Passing authority or tasks down the chain of command to a subordinate.

Subordinate

An employee who is lower in rank and answers directly to a specific manager.

Zero-hours Contract

A contract where the employer is not obliged to provide any minimum working hours, and the worker is not obliged to accept any work offered.

Legislation

Laws passed by parliament that businesses must follow.

Equality Act

A law that protects people from discrimination in the workplace based on traits like gender, race, age, or disability.

Statement of Particulars

A legal document given to an employee outlining the terms of their employment (e.g., pay, hours, holiday entitlement