OCR GCSE Business key terms

Income remaining after income tax and other compulsory deductions, which consumers can spend or save. Essential living costs use up part of this income.

The route through which a product reaches its customers, such as direct selling or selling through retailers.

In external growth, a merger or takeover involving a business in an unrelated industry, spreading activity across different markets.

A payment to shareholders from a company’s profits.

The customers and potential customers within a business’s own country.

The ability of a product to last for its expected useful life.

The buying and selling of goods and services over the internet, including through websites, apps and online marketplaces.

The overall economic conditions in which businesses operate. Changes in consumer income and unemployment can affect sales, staffing and recruitment.

Reductions in average cost that a business can achieve as its scale of production increases.

A reduction in average cost per unit as a business increases its scale of production.

Communication in which a message reaches the intended receiver, is understood correctly and, where needed, is acted upon as intended.

An electronic message sent to one or more email addresses, which can include attached files.

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

How effectively an employee carries out their work, including the quantity and quality of their output and their reliability.

The ability of a business to keep its employees rather than having them leave.

An organisation that supplies workers, often for temporary vacancies. In this arrangement, the business pays the agency, which pays the worker.

Laws that set rules for how employers recruit and treat people at work.

A legal body that hears disputes concerning employment rights, including discrimination claims.

Identifying a business opportunity and organising resources to turn an idea into goods or services.

A person who organises and runs a business, taking risks in pursuit of financial or non-financial rewards.

A business that has been operating for some time and has a trading history.

A goal concerned with acting fairly and responsibly towards people or the environment.

Obtaining materials, components, products or services from suppliers whose practices meet ethical standards, including fair treatment of workers.

The indirect costs of running a business, such as office rent and administration costs, deducted from gross profit to calculate net profit.

A good or service sold to a customer in another country.

Communication between a business and people outside it, such as customers and suppliers.

Information obtained from outside a business, such as published statistics, newspaper articles and market reports.