Edexcel GCSE Business key terms

A diagram that positions products or businesses against two characteristics so that their market positions can be compared.

How a product or business is perceived in relation to competing products or businesses.

The collection and analysis of information about customers, competitors and the market to inform business decisions.

A group of customers with shared characteristics or needs within a wider market.

The process of dividing a market into groups of customers with similar characteristics and buying habits.

The proportion of total market sales accounted for by a business or product, expressed as a percentage.

The amount added to the cost of buying a product to determine its selling price.

The greatest amount of stock a business plans or is able to hold in normal circumstances.

An agreement between two or more businesses to join together to form a new business.

An employee’s willingness and desire to put effort into their work and achieve goals.

A business with operations, such as factories, offices or shops, in more than one country.

The legally required minimum hourly pay for eligible workers, with different rates applying to different categories of worker.

Cash inflows minus cash outflows in a given period.

The profit remaining after other operating expenses and interest have been deducted from gross profit. Under the formula used in this qualification, it is before tax.

Net profit expressed as a percentage of sales revenue, showing the proportion remaining after cost of sales, other operating expenses and interest.

A business target whose main purpose is not financial gain, such as personal satisfaction or helping others.

A research method that watches and records people's behaviour, such as how shoppers choose products.

The process by which a product or service becomes outdated as technology or consumer wants change.

Training provided throughout employment to maintain, improve and update employees’ skills.

The cash balance at the start of a period, equal to the previous period’s closing balance.

Other costs of running a business that are deducted from gross profit, such as rent, marketing and administrative expenses.

An employee who carries out the business's main production or service activities.

The arrangement of roles, responsibilities and reporting relationships within a business.

A diagram showing the positions within a business and who reports to whom.

A new business concept or invention rather than a modification of an existing product, service or idea.

An agreement allowing a business to spend more than the balance in its bank current account, up to an agreed limit.

The general running costs of a business, such as rent and utilities.