OCR GCSE Business key terms

A goal that a business seeks to achieve, such as survival, profitability, growth or providing a good service.

The legal structure of a business, which determines who owns it and how ownership is organised.

A document setting out what a business intends to achieve and how, including its market, resources, marketing and finance.

Deciding in advance what a business will do and how it will organise its activities to achieve its aims and objectives.

Achieving what a business sets out to do, such as surviving, making a profit or providing a good service to customers.

A risk taken after considering its likelihood, possible consequences and potential benefits.

Money invested in a business to help it start or expand.

Money a business holds as notes, coins and available funds in its bank account.

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

A prediction of cash entering and leaving a business over future time periods, showing its expected cash balances.

Money received by a business during a time period, such as cash from sales or a loan received.

Money paid out by a business during a time period, such as payments for materials, wages or loan repayments.

A situation in which a business does not have enough available cash to meet the payments it needs to make.

An official survey of the population that gathers information about people and households.

The formal line of authority linking senior management to employees lower in the hierarchy.

Long-term changes in temperatures and weather patterns. Current climate change is driven mainly by human activities, including burning fossil fuels.

The cash balance at the end of a time period: $\text{Closing balance} = \text{Opening balance} + \text{Net cash flow}$.

An asset offered as security for borrowing, which the lender may take if the borrower fails to repay.

Payment linked to the sales an employee makes.

The sharing of information between a sender and a receiver.

A promotion offering customers the chance to win a prize, intended to attract attention or encourage purchases.

A feature or strength that makes a business more attractive to customers than its competitors.

The ability of a business to compete successfully with other businesses, for example through its prices, quality or customer service.

Another business offering goods or services to the same potential customers.

Setting a selling price similar to those charged by competitors for comparable products.

The use of computer software to create and alter digital designs of products, often as two-dimensional drawings or three-dimensional models.

The use of computers to control machines and assist manufacturing operations.