AQA GCSE Business key terms

An item owned by a business, such as machinery, inventory or cash.

Management in which the manager makes decisions with little or no employee involvement.

The use of machinery or technology to carry out production tasks automatically.

The total profit generated by an investment over its life divided by the number of years it lasts.

The average annual profit from an investment expressed as a percentage of its initial cost.

The average annual profit from an investment expressed as a percentage of its original cost: $\text{ARR} = \frac{\text{average annual profit}}{\text{initial investment}} \times 100$.

The average cost of producing one item, calculated by dividing total costs by the number of units produced.

An influence on the collection or interpretation of information that can make the results misleading, such as leading questions.

A tool for analysing a business’s product portfolio by classifying products according to market share and market growth. It is also called the Boston Box.

A deliberate refusal to buy a business's products in order to pressure it to change its actions.

The perceptions and associations customers have about a brand, such as its quality, reliability, value or style.

Creating a recognisable identity for a product or business through elements such as its name, logo, colours and design.

Using costs and revenue at different output levels to identify break-even and help assess business decisions.

The level of output at which total revenue equals total costs, so the business makes neither a profit nor a loss.

The level of sales at which total revenue equals total costs, so the business makes neither a profit nor a loss.

Spare stock held to cover unexpected demand or delays in supply.

An organisation that combines resources to provide goods or services to meet customers’ needs and wants.

A broad, usually long-term goal that a business wants to achieve.

An increase in the scale of a business’s activities, such as its sales, output or number of locations.

An increase in the size of a business, often shown by rising sales or expansion into additional markets.

Spending by a business on assets, such as machinery or premises, intended to provide future benefits.

The place where a business operates, such as a shop, office or factory.

A specific target that a business aims to achieve, often with a measurable outcome and a deadline.

A written document describing a business, its objectives, how it intends to operate and develop, and its financial forecasts.

The human-made resources used in production, such as machinery, tools and equipment.

Spending on long-term assets, such as machinery, buildings or vehicles, which a business expects to use over several years.

Money available to a business as notes, coins or money in its bank account.