AQA GCSE Business key terms

A business that is being established or has recently begun operating.

A financial statement showing a business’s assets, liabilities and equity at a particular date; also called a balance sheet.

The goods and materials a business holds for use in production or for sale. Stock is also called inventory.

A situation in which a business runs out of a particular item of stock.

A business that provides goods or services to another business.

The amount a supplier charges a business for goods or services.

A supplier’s ability to consistently provide what was agreed, in the required quantity and at the agreed time.

All the businesses, people and activities involved in producing a product and delivering it to the final customer.

Coordinating suppliers, production, storage and delivery so that products reach customers efficiently and cost-effectively.

A research method that collects answers from a group of respondents, usually using a questionnaire.

Continuing to trade rather than closing down.

Meeting present needs without compromising the ability of future generations to meet their own needs.

The purchase of one business by another, giving the buyer control of the acquired business.

An organisational structure with many levels of hierarchy, usually a long chain of command and narrow spans of control.

The group of customers a business aims to sell its products or services to.

A reduction in average unit cost because operating on a larger scale allows a business to use more efficient machinery or technology.

Selling products or services over the telephone.

The part of the economy concerned with providing services, including retailing and hairdressing.

The sum of fixed costs and total variable costs at a particular output level.

The sum of a business's fixed costs and total variable costs over a period.

A whole-business approach in which all employees take responsibility for quality, preventing problems and continually improving how work is done.

An agreement allowing a business to receive goods from a supplier and pay for them later.

Information describing a product, such as its materials, quantity or performance, which must be accurate.

A situation in which gaining more of one benefit involves giving up some of another.

A build-up of vehicles on roads that slows traffic and causes delays.

Developing employees’ knowledge and skills so that they can carry out their work more effectively.

A situation in which a business cannot reliably predict future events or their effects.