OCR GCSE Business key terms

The income a business earns from selling goods or services, before costs are deducted.

A financial or non-financial benefit gained from business activity, such as profit, independence or personal satisfaction.

The possibility that a business decision or event will lead to an unfavourable outcome, such as financial loss or business failure.

A willingness to commit resources or make decisions when the outcome is uncertain and there is a possibility of loss.

The use of programmable machines to carry out physical tasks, such as assembling or painting products.

Regular expenses involved in operating a business, such as wages, utilities and supplies.

A fixed amount of pay for a period of employment, usually stated annually.

Raising money by selling items owned by a business, such as equipment, vehicles or buildings.

The money a business receives from selling goods or services, before costs are deducted.

The number of items sold over a particular period.

A smaller group selected from a population to take part in research.

The standard of goods that a reasonable person would consider acceptable, taking account of circumstances such as price and description. It includes safety, durability, appearance and freedom from minor defects.

A repeating pattern of changes in business activity at particular times of the year.

The use of information that already exists, rather than collecting new information directly.

An asset pledged to a lender which may be taken if the borrower fails to repay a secured loan.

The process of choosing the most suitable applicant for a job.

An assessment used to investigate an applicant’s skills, abilities or suitability for a job.

Working for oneself and providing goods or services to customers rather than working as an employee of another business.

An intangible product: an activity provided for someone, such as hairdressing.

Money raised by a company through selling shares representing part-ownership of the business.

An individual or organisation that owns shares in a company and therefore owns part of that company.

The sale of new shares in a limited company to raise money for the company.

Choosing the applicants who best match the job requirements to proceed to interviews or other selection activities.

An amount owed by a business that must be paid soon, such as a supplier’s invoice becoming due.

A difference between the skills a business needs and the skills its existing employees possess.

A lack of workers with the knowledge or abilities needed to carry out particular tasks.

A target that is Specific, Measurable, Achievable, Realistic and Timely.