Edexcel GCSE Business key terms

The ability of a business to continue operating rather than close down.

Money immediately available to a business to make payments, including money in its bank account.

The movement of money into and out of a business over time.

An estimate of future cash inflows and outflows, showing the expected cash balance over time.

Money received by a business, such as cash received from customers or a bank loan.

Money paid out by a business, such as payments for stock, wages or rent.

Keeping decision-making authority mainly with senior managers at the centre of a business.

The formal line of authority linking senior management to employees at lower levels of a business.

The range of products, services or options available to customers.

An approach in which a business sells through both physical shops and online.

The cash balance at the end of a period, calculated as opening balance plus net cash flow.

Keeping files online so that authorised users can access and share them from different devices and locations.

An asset offered as security for a loan, which the lender may take and sell if the borrower fails to repay.

Payment linked to sales made by an employee, commonly calculated as a percentage of sales revenue.

The passing of information from one person or organisation to another.

The route or method used to pass information between people or groups in a business.

Rivalry between businesses seeking to attract customers in the same market.

A factor that enables a business to compete more successfully than its rivals.

Setting prices in relation to competitors’ prices.

A business that rivals another business for customers.

Acting in accordance with the laws and regulations that apply to a business.

Expenditure incurred by a business to meet legal requirements, such as staff training, safety equipment or legal advice.

A person who uses a good or service.

Laws protecting people who buy goods and services from unfair treatment, misleading information and unsafe or poor-quality products.

How easy it is for customers to access, buy and use a product or service.

A tax on a company’s profits.

The direct cost of the goods or services sold, such as the purchase cost of stock sold by a retailer or the materials used to make products sold by a manufacturer.

Setting a selling price by adding a mark-up to the cost per unit.