Edexcel GCSE Business key terms

The charge a business pays for borrowing money.

The percentage charged for borrowing money or paid as a return on savings.

A business between a producer and the final customer that helps products reach customers, such as a retailer.

Finance generated from resources already within a business, such as retained profit or money raised by selling assets.

Expansion through developing a business’s own activities, such as launching new products or entering new markets, rather than joining with or buying another business.

Filling a vacancy by appointing someone who already works for the business, often through promotion or transfer.

Specialist words or expressions used by a particular group that other people may not understand.

A document describing a job's duties, responsibilities and employment conditions.

Making a job more challenging and meaningful by adding responsibility and opportunities to use skills.

Making an individual product or completing an individual order, usually to a customer’s particular requirements.

Moving employees between different tasks or roles to provide variety and broaden their skills.

A stock-control system in which materials or components arrive when needed for production, keeping stockholding to a minimum.

The people available to work for a business, including those with the skills it needs.

The rate at which employees leave a business and need replacing.

The uncertainty of an owner's income and the absence of guaranteed employment benefits, such as sick pay and paid holidays.

The time between placing an order and receiving its delivery.

The laws that a business must follow, which can affect its costs and the way it operates.

Legal responsibility for debts owed by a business.

Protection that limits a shareholder’s financial loss to the amount invested in the company, rather than making them personally responsible for its debts.

Money borrowed by a business that must be repaid over an agreed period, usually with interest.

The people and organisations living or operating near a business.

The organisation of the movement, storage and distribution of goods through the supply chain.

The amount by which a business’s total costs exceed its revenue over a period.

A product sold at little or no profit, or at a loss, to attract customers who may also buy more profitable products.

A person responsible for organising business activities and directing employees to achieve business objectives.

The difference between actual or budgeted sales and break-even sales. A positive margin shows how far sales can fall before the business makes a loss.

Conditions affecting sales in a market, including customer demand, competition and customers’ sensitivity to prices.