OCR GCSE Business key terms

Money received by consumers, including earnings from employment, pensions, benefits and investments.

Legislation that protects consumers and places obligations on businesses supplying goods and services.

A legally binding agreement between an employer and an employee setting out the terms and conditions of employment.

The selling price of one unit minus its variable cost. This is the amount each sale contributes towards covering fixed costs and, once those are covered, profit.

Organising activities across a business so that different people and departments work together towards shared objectives.

Money a business spends to operate and provide goods or services.

The costs directly associated with the goods or services sold by a business during a period.

An online advertising charging method in which the advertiser pays when someone clicks on its advertisement.

Setting a selling price by adding a mark-up to the cost of producing a product.

The ability to develop original ideas or find new ways to solve problems.

A person or organisation to whom a business owes money.

A sale in which the customer receives goods or services now and pays later.

Raising finance through contributions from a large number of people, usually through an online platform.

A document prepared by an applicant summarising their qualifications, experience, skills and contact details.

Interaction and communication with customers to understand their needs and create a positive experience of dealing with a business.

A customer's preference for buying repeatedly from the same business rather than its rivals.

A requirement or preference that a customer seeks to satisfy when buying a product or service.

Keeping existing customers so that they continue to buy from the business.

The support a business provides to its customers before, during and after a purchase, including answering queries and dealing with returns.

The stage when a product's sales fall.

An agreement setting out partners’ rights and responsibilities, including contributions of capital, decision-making and the sharing of profits.

Giving another employee authority to carry out a specific activity and make decisions about it.

The amount of a good or service that customers are willing and able to buy at a given price.

Characteristics of a population, such as age and gender.

The commitment to keep working towards a goal despite difficulties or setbacks.

Making a product or service stand out from competitors’ offerings through features such as quality, branding or service.

The exchange of information electronically using digital devices and networks, such as through email, text messages or social media.