IGSCE vocabulary edexcel business

1. Above-the-line promotion – Advertising using mass media (TV, radio, newspapers).

2. Accounts clerk – Office worker who maintains financial records.

3. Acid test ratio (Quick ratio) – Liquidity measure: (Current assets - Stock) / Current liabilities.

4. Adjustments – Changes to accounts, e.g., profits from asset sales.

5. Advertising – Paid communication to promote products via media.

6. Agent/Broker – Intermediary connecting buyers and sellers.

7. Anti-competitive practices – Tactics to restrict competition (e.g., price-fixing).

8. Apprenticeship – Training combining on-the-job experience with education.

9. Arrears – Overdue payments owed by or to a business.

10. Assembly plant – Factory where parts are assembled into finished goods.

11. Assets – Resources owned by a business (e.g., cash, machinery).

12. Assisted areas – Regions receiving government economic support.

13. Audit – Official inspection of financial records for accuracy.

14. Auditing – Thorough accounting accuracy check.

15. Automation – Using machines/computers instead of human labor.

16. Automotive – Relating to motor vehicles.

17. Balance of trade (Visible balance) – Difference between visible exports and imports.

18. Bank overdraft – Short-term borrowing up to an agreed limit.

19. Barriers to entry – Obstacles preventing new firms from entering a market.

20. Batch production – Producing groups of items simultaneously.

21. Below-the-line promotion – Non-media promotions (e.g., discounts, PR).

22. Bid – Offer to buy something (e.g., a business) at a set price.

23. Bonus systems – Extra payments for meeting targets or service.

24. Boston Matrix – Classifies products by market share and growth potential.

25. Break-even chart – Graph showing costs, revenue, and break-even point.

26. Break-even point – Output level where total revenue = total costs.

27. Brownfield sites – Land previously used for urban development.

28. Budget – Financial plan for income and expenditure.

29. Budgetary measures – Government actions to influence the economy.

30. Bulk breaking – Dividing large shipments into smaller quantities for resale.

31. Bulk buying – Purchasing in large quantities for discounts.

32. Business – Organization producing goods/services.

33. Business to Consumers (B2C) – Selling directly to end-users.

34. Capital employed – Total funds invested in a business.

35. Capital – Money invested by owners or shareholders.

36. Capital-intensive production – Relies more on machinery than labor.

37. Cash flow – Movement of money in/out of a business.

38. Cash flow forecast – Predicts future cash inflows/outflows.

39. Cash inflow – Money entering a business.

40. Cash outflow – Money leaving a business.

41. Centralised organisation – Decisions made at the top level.

42. Certificate of Incorporation – Legal document to form a company.

43. Chairperson – Leads meetings or directs an organization.

44. Charities – Non-profits aiding social causes.

45. Closing cash balance – Expected cash remaining at month-end.

46. Commission – Payment based on sales value (often a %).

47. Commodities – Raw materials traded (e.g., oil, wheat).

48. Communication channels – Routes for information flow in a business.

49. Competition-based pricing – Setting prices based on rivals.

50. Computer-Aided Design (CAD) – Using software for product design.

51. Computer-Aided Manufacturing (CAM) – Automating production via computers.

52. Computer Integrated Manufacturing (CIM) – Computers control entire production.

53. Computer Numerically Controlled Machines (CNCs) – Machines following computer instructions.

54. Consumer cooperative – Business owned by its customers.

55. Consumer goods – Products for personal use (not businesses).

56. Consumer panels – Groups providing product feedback over time.

57. Contracts of employment – Legal agreements between employer/employee.

58. Cooperative – Business owned and run by its members.

59. Cost-plus pricing – Adding a markup to production costs.

60. Costs – Expenses incurred in running a business.

61. Coupons – Vouchers offering discounts or free gifts.

62. Crowdfunding – Raising capital from many small investors online.

63. Currency reserves – Foreign currency held by a country.

64. Current assets – Assets convertible to cash within a year.

65. Current liabilities – Debts due within a year.

66. Current ratio – Liquidity measure: Current assets ÷ Current liabilities.

67. De-industrialisation – Decline in manufacturing activity.

68. Debenture – Long-term loan secured against assets.

69. Decentralised organisation – Decision-making spread across levels.

70. Deed of partnership – Legal agreement between partners.

71. Demographic segmentation – Dividing markets by age, gender, income.

72. Design brief – Instructions for a new product’s features.

73. Destroyer/Predatory pricing – Selling below cost to eliminate rivals.

74. Direct mail – Advertising sent via postal mail.

75. Direct selling – Selling products straight to consumers.

76. Diseconomies of scale – Rising average costs due to excessive growth.

77. Distributed profit – Profits paid to business owners.

78. Distribution channel – Path from producer to consumer.

79. Diversify – Expanding into new products/markets.

80. Dividends – Share of profits paid to shareholders.

81. Division of labour – Specializing in specific tasks.

82. Downsizing – Reducing workforce/capacity.

83. Downturn – Period of declining business activity.

84. Downward communication – Messages from top to lower levels.

85. Drawings – Owner’s personal withdrawals from the business.

86. Dumping – Selling goods abroad below cost.

87. E-commerce (E-tailing) – Selling goods/services online.

88. Early adopters – Customers who buy new products first.

89. Economies of scale – Cost advantages from large-scale production.

90. Emerging economies – Rapidly growing but risky markets (e.g., Brazil).

91. Employment tribunal – Court resolving employer-employee disputes.

92. Enterprise – Entrepreneurial activity.

93. Entrepreneur – Person who starts/runs a business, taking risks.

94. Exchange rate – Value of one currency against another.

95. Excise duties – Taxes on specific goods (e.g., alcohol, tobacco).

96. Executives – Senior managers making key decisions.

97. Exports – Goods/services sold overseas.

98. Exposure – Advertising/publicity for a product.

99. Extension strategies – Methods to prolong a product’s life cycle.

100. External communication – Business messaging to outsiders (e.g., customers).

101. External economies of scale – Cost benefits that all firms in an industry enjoy when the industry expands

102. External finance – Funding obtained from outside the business (e.g., loans, investors)

103. External recruitment – Hiring employees from outside the company

104. Extraction industries – Industries that obtain raw materials from the earth (mining, drilling, etc.)

105. Factors of production – Economic resources: land, labor, capital and enterprise

106. Finance cost – Interest paid on loans and borrowings

107. Finance income – Interest received on deposits/investments

108. Financial return – Monetary gain from an investment

109. Finite – Having limits (e.g., finite resources)

110. Fiscal policy – Government use of taxation and spending to influence the economy

111. Fixed assets – Long-term resources (property, equipment, etc.)

112. Fixed capital – Machinery/tools used in production

113. Fixed costs – Costs that don’t vary with output (rent, salaries)

114. Flexitime – Flexible working hours within set limits

115. Flotation – Process of a company going public (issuing shares)

116. Flow production – Continuous, large-scale manufacturing process

117. Formal communication – Official communication channels (reports, meetings)

118. Formal organisation – Structured business hierarchy (org chart)

119. Franchise – Business model where operators trade under a brand name

120. Free trade – International trade without restrictions

121. Fringe benefits – Non-wage perks (company car, health insurance)

122. FTSE 100 – UK stock market index of top 100 companies

123. Globalisation – Growing integration of world economies

124. Goods – Physical products (e.g., phones, clothing)

125. Goodwill – Intangible asset representing brand reputation

126. Greenfield sites – Previously undeveloped land for new projects

127. Gross pay – Salary before deductions

128. Gross profit – Sales revenue minus cost of sales

129. Gross profit margin – Gross profit as percentage of turnover

130. Hire purchase – Buying goods with a loan, paying in installments

131. Horizontal communication – Communication between same-level employees

132. Hostile takeover – Acquisition opposed by target company’s management

133. Human capital – Employees’ skills and knowledge

134. Human resources – Department managing personnel

135. Hygiene factors (Herzberg’s) – Workplace factors preventing dissatisfaction

136. Imports – Goods/services bought from overseas

137. Incorporated – Business with separate legal identity from owners

138. Induction training – Training for new employees

139. Infant industries – New industries needing protection

140. Infinite – Without limits (opposite of finite)

141. Informal communication – Unofficial communication (gossip, chats)

142. Infrastructure – Basic physical systems (roads, utilities)

143. Innovator – Person who introduces new ideas

144. Insolvent – Unable to pay debts

145. Instalment – Partial payment of a debt

146. Intellectual property – Protectable creative/commercial ideas

147. Interest – Cost of borrowing/reward for saving

148. Intermediary – Middleman between buyers/sellers

149. Internal communication – Communication within a business

150. Internal economies of scale – Cost benefits from business expansion

151. Internal finance – Funds generated from within the business (retained profits)

152. Internal recruitment – Hiring employees from within the company

153. Inventory – Stock of goods/materials held by a business

154. Invisible trade – Trade in services (banking, insurance) rather than goods

155. Issue (shares) – Offering new company shares for sale

156. Job enrichment – Making jobs more challenging/fulfilling

157. Job production – Custom production of single, unique items

158. Job satisfaction – Employee contentment with their work

159. Just-in-time production – Manufacturing system minimizing stock holdings

160. Kaizen – Japanese philosophy of continuous improvement

161. Labour – Human workforce/employees

162. Labour productivity – Output per worker in given time

163. Labour-intensive production – Production relying more on workers than machines

164. Large business – Company employing 250+ people

165. Lay off (staff) – Making employees redundant

166. Lean production – Approach minimizing resource waste

167. Liabilities – Business debts/obligations

168. Limited companies – Businesses with separate legal identity

169. Limited liability – Owner’s responsibility limited to investment

170. Limited partnership – Partnership with some non-active investors

171. Liquid – Asset easily convertible to cash

172. Liquidity – Ease of converting assets to cash

173. Livelihood – Means of earning a living

174. Long-term finance – Borrowing for >1 year (loans, mortgages)

175. Loss leader – Product sold below cost to attract customers

176. Margin of safety – Output above break-even point

177. Mark-up – Amount added to costs for profit

178. Market analysis – Study of market characteristics/trends

179. Market orientation – Business focus on customer needs

180. Market research – Gathering/analyzing market information

181. Market segments – Distinct groups within a market

182. Market – System for buyer-seller exchange

183. Market share – Company’s portion of total market sales

184. Marketing – Identifying/satisfying customer needs profitably

185. Marketing mix (4Ps) – Product, Price, Place, Promotion

186. Maslow’s hierarchy of needs – Theory of human motivation

187. Mass markets – Large markets for widely-appealing products

188. Merchandise – Goods available for sale

189. Merchandising – Product display/presentation strategies

190. Merger – Combining two businesses into one

191. Minimum wage – Lowest legal hourly pay rate

192. Monetary policy – Central bank control of money supply/interest rates

193. Monetary system – Country’s currency/control mechanisms

194. Mortgage – Long-term property loan

195. Motivators (Herzberg’s) – Workplace factors creating satisfaction

196. Multinational company – Business operating in multiple countries

197. Natural monopoly – Industry most efficient with single supplier

198. Needs – Basic human requirements

199. Net assets – Total assets minus total liabilities

200. Net cash flow – Difference between cash inflows/outflows

201. Net current assets – Current assets minus current liabilities (working capital)

202. Net pay – Take-home pay after deductions (tax, pensions)

203. Niche market – Small, specialized market segment

204. Non-current assets – Long-term resources (property, machinery)

205. Non-current liabilities – Debts due after 1 year (long-term loans)

206. Normal profit – Minimum profit needed to keep owners invested

207. Objectives – Specific, measurable business goals

208. Off-the-job training – Training conducted outside the workplace

209. Ombudsman – Official who investigates complaints (e.g., banking)

210. On-the-job training – Learning while performing work tasks

211. Operating profit – Gross profit minus expenses

212. Operating profit margin – Operating profit as % of turnover

213. Organisation – Structured group (business, club) with a purpose

214. Organisational chart – Diagram of job roles/hierarchy

215. Outcompeted – Surpassed by rivals in performance

216. Output – Quantity of goods/services produced

217. Outsourcing – Contracting work to external providers

218. Overdue – Payment not made by the due date

219. Overheads – Ongoing business expenses (rent, utilities)

220. Overtime – Extra hours worked, paid at a higher rate

221. Overtrading – Expanding faster than cash flow allows

222. Partnership – Business owned by 2–20 people

223. Patents – Legal protection for inventions

224. Payroll officer – Manages employee wages/tax

225. Penetration pricing – Low initial price to enter market

226. Performance-related pay – Bonuses tied to targets

227. Pharmaceutical – Relating to medicinal drugs

228. Piece rate – Pay based on units produced

229. Portfolio – Range of products/investments

230. Predator – Company aggressively targeting others

231. Premises – Buildings/land used by a business

232. Primary research – New data collection (surveys, interviews)

233. Primary sector – Industries extracting raw materials

234. Private limited company (Ltd) – Incorporated business with shareholders

235. Private sector – Businesses owned by individuals/groups

236. Privatisation – Transfer of public assets to private owners

237. Process production – Continuous manufacturing system

238. Producer goods – Products made for other businesses

239. Product development – Creating/improving products

240. Product life cycle – Stages from launch to decline

241. Product orientation – Focus on product features over customer needs

242. Product portfolio – Range of products a business offers

243. Product positioning – How customers perceive a product vs. rivals

244. Production – Process of converting inputs to outputs

245. Productivity – Output per unit of input (e.g., labor)

246. Profit maximisation – Aiming for highest possible profit

247. Profit – Revenue minus total costs

248. Profit satisficing – Accepting “enough” profit to satisfy owners

249. Prospectus – Document inviting public to buy shares

250. Protectionism – Policies restricting imports to protect domestic firms

251. Public corporations – State-owned business organizations

252. Public limited company (PLC) – Company with publicly traded shares

253. Public relations (PR) – Managing a company’s public image

254. Public sector – Organizations owned by the government

255. Qualitative data – Non-numerical information (opinions, feedback)

256. Quality – Features that meet customer needs/standards

257. Quality assurance – Processes ensuring consistent quality

258. Quality circles – Employee groups solving work-related problems

259. Quality control – Checking products meet set standards

260. Quantitative data – Numerical information (sales figures, surveys)

261. Quota – Import/export limit set by governments

262. Ratio analysis – Comparing financial figures to assess performance

263. Redeployment – Moving employees to different roles/departments

264. Regulatory control – Government rules overseeing business activities

265. Remuneration – Total compensation for employees (salary + benefits)

266. Repatriation (of profit) – Sending foreign earnings back to the home country

267. Repossess – Taking back goods due to non-payment

268. Retail cooperative – Retailer-owned cooperative for bulk purchasing

269. Retailers – Businesses selling directly to consumers

270. Retained profit – Earnings reinvested in the business

271. Return on Capital Employed (ROCE) – Profit as % of capital invested

272. Revenue – Income from sales before costs are deducted

273. Rights issue – Offering new shares to existing shareholders at a discount

274. Salary – Fixed regular pay (usually annual/monthly)

275. Sample – Small group representing a larger market in research

276. Saturate (market) – Over-supply leading to no growth potential

277. Scale – Size/scope of business operations

278. Scarce – Limited resources in high demand

279. Secondary research – Using existing data (reports, studies)

280. Secondary sector – Industries manufacturing finished goods

281. Services – Intangible products (banking, education)

282. Shareholders – Owners of a company’s shares

283. Short-term finance – Borrowing repaid within 1 year (e.g., overdraft)

284. Skimming (or creaming) – High initial prices later lowered

285. Small business – Employs fewer than 50 people

286. Social enterprise – Business prioritizing social/environmental goals

287. Social security payments – Government welfare support

288. Socio-economic groups – Population divided by income/occupation

289. Sole trader (sole proprietor) – Business owned by one person

290. Span of control – Number of subordinates a manager oversees

291. Stakeholder – Anyone with an interest in a business

292. Statement of comprehensive income – Shows income/expenses (profit & loss)

293. Statement of financial position – Summary of assets/liabilities (balance sheet)

294. Stock market – Marketplace for buying/selling shares

295. Stockpile – Large reserve of goods kept for future use

296. Subscription pricing – Recurring payments for continued access

297. Subsidise – Financial support (often government-funded)

298. Subsidy – Government payment to support industries

299. Surplus – Excess supply/revenue over needs

300. Sustainable development – Growth that doesn’t compromise future resources

301. Tailor-made – Products/services customized for specific needs

302. Tariff – Tax imposed on imported goods

303. Tax allowances – Portion of income not subject to taxation

304. Tertiary sector – Service-based industries

305. Time rate – Payment based on hours worked

306. Total costs – Sum of fixed and variable costs

307. Total Quality Management (TQM) – Organization-wide quality focus

308. Total revenue – Income from all sales (Price × Quantity sold)

309. Trade barriers – Restrictions limiting international trade

310. Trade bloc – Group of countries with reduced trade barriers

311. Trade payables – Amounts owed to suppliers (accounts payable)

312. Trade receivables – Amounts owed by customers (accounts receivable)

313. Trade unions – Organizations representing workers’ interests

314. Training – Developing employee skills/knowledge

315. Transactions – Business exchanges (buying/selling)

316. Undercapitalised – Business started with insufficient funding

317. Unfair dismissal – Illegal termination of employment

318. Unincorporated businesses – No legal separation between owner and business

319. Unique Selling Point (USP) – Distinctive feature differentiating a product

320. Unlimited liability – Owner personally responsible for all business debts

321. Untapped – Potential market/resources not yet utilized

322. Upward communication – Feedback from lower to higher organizational levels

323. Urbanisation – Population shift from rural to urban areas

324. Variable costs – Expenses that change with production levels

325. Venture capitalists – Investors providing capital to high-risk startups

326. Ventures – New business projects involving risk

327. Viability studies – Analysis of a project’s feasibility

328. Viral advertising – Marketing spread rapidly through social sharing

329. Visible trade – International exchange of physical goods

330. Wants – Desires beyond basic needs

331. Wholesalers – Businesses selling large quantities to retailers

332. Worker cooperative – Business owned and managed by its employees