AQA GCSE Business key terms

The removal of one or more levels of hierarchy from an organisation.

Giving a subordinate responsibility for a task and the authority needed to carry it out.

The quantity of a product customers are willing and able to buy at a particular price over a given period.

Management in which employees are consulted and involved in decision making.

Dividing a market using population characteristics, such as age, gender and income.

A decrease in the value of a currency relative to another currency.

The transfer of information using electronic devices, such as computers, tablets and smartphones.

Selling from a producer to a final customer without a wholesaler or retailer acting as an intermediary.

An increase in average unit cost caused by inefficiencies as a business becomes larger.

The route through which a product reaches its final customer, either directly from the producer or through other businesses.

Developing different products or serving different markets to reduce dependence on one source of sales.

A payment to shareholders from a company's profits.

A product with low market share in a low-growth market.

The constantly changing conditions in which businesses operate, requiring them to respond to new opportunities and threats.

The buying and selling of goods and services over the internet.

The overall economic conditions in which businesses operate, including interest rates, employment levels and consumer spending.

Reductions in average unit cost that can result as a business increases its scale of production.

A reduction in average cost per unit that results from a business increasing its scale of production.

How well a business uses its resources to produce goods or provide services, avoiding wasted materials, time and money.

Laws protecting workers’ rights and governing how employers treat them.

The activity of identifying a business opportunity, organising resources and taking risks to turn an idea into a business.

A person who sets up and runs a business, organising resources and taking risks in pursuit of its success.

Making decisions that take account of environmental impacts and aim to prevent or reduce environmental harm.

A law protecting people against unlawful discrimination, including in recruitment and employment.

The owners’ financial interest in a business, equal to total assets minus total liabilities.

Business behaviour that stakeholders consider fair and honest, reflecting judgements about what is morally right.

A set of principles intended to guide the behaviour and decisions of people within a business.