OCR GCSE Business key terms

Support provided after a customer has bought a product, such as help with using it, servicing or repairing it.

A standardised document designed by an employer to collect the same information from each applicant.

A structured programme combining paid employment with workplace learning and formal training for a particular occupation.

The power to make and implement business decisions and direct other employees within a particular area of responsibility.

The use of machinery or computer-controlled systems to carry out tasks with reduced direct human involvement.

The total profit from an investment divided by the number of years it lasts.

Fixed costs spread across each unit of output, calculated by dividing total fixed costs by quantity produced.

The average annual profit from an investment expressed as a percentage of its initial cost.

An organised system for recognising employees’ achievements, such as Employee of the Week or certificates.

Vertical integration towards an earlier stage of the supply chain, such as a manufacturer taking over a supplier.

An agreed sum borrowed from a bank and repaid, with interest, over a set period.

A production method in which a group of similar items is made together, passing through the stages of production as a batch.

An influence that makes research findings an unfair or misleading reflection of the people or market being studied.

An additional payment made to an employee for achieving a goal or meeting performance expectations.

A collective refusal to buy from a business in order to protest against its behaviour.

The impression customers have of a brand, including the qualities and values they associate with it.

The point at which a business’s total revenue equals its total costs, so it makes neither a profit nor a loss.

A planning tool that uses costs and revenue to identify the sales quantity at which total revenue equals total costs, and to explore the effects of possible changes.

The number of units that must be sold for total revenue to equal total costs, so that neither a profit nor a loss is made.

Dividing large quantities of goods into smaller quantities for sale.

An amount of money allocated for a particular activity or period.

The activities involved in producing and providing goods or services to meet customers’ needs and wants.

A broad goal a business wants to achieve, such as growth or survival.

The exchange of information between people within a business or between a business and people outside it.

Growth or improvement in a business, such as introducing products, adopting technology or expanding its activities.

Principles about right and wrong that guide business decisions, including responsibilities beyond minimum legal requirements.

An increase in the scale of a business's activities, such as producing more goods or opening additional outlets.