Business key terms

A recognised award gained through study and assessment focused mainly on a subject and its underlying knowledge and ideas.

Changing an existing product, service or idea to improve it or make it more suitable for consumers.

The difference between a product’s selling price and the cost of bought-in inputs used to provide it.

Paid-for messages used by a business to promote its products or services.

A channel through which an advertisement reaches its intended audience, such as television, radio or a website.

The appearance and sensory appeal of a product, including its shape, colour and texture.

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

The release of harmful gases or particles into the atmosphere.

An employer-designed document containing standard questions that applicants complete when applying for a job.

An increase in the value of a currency relative to another currency.

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

Matching the information and description given about goods before purchase.

An item owned by a business, such as machinery, inventory or cash.

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

Management in which the manager makes decisions with little or no employee involvement.

The use of machinery or technology to carry out production tasks automatically.

Giving employees freedom and authority to make decisions about their work within agreed limits.

The ability of a supplier to provide the goods and quantities a business needs.

The total profit generated by an investment over its life 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.

The average annual profit from an investment expressed as a percentage of its original cost: $\text{ARR} = \frac{\text{average annual profit}}{\text{initial investment}} \times 100$.

The average cost of producing one item, calculated by dividing total costs by the number of units produced.

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.

A sum borrowed from a bank and repaid with interest over an agreed period.

A graph showing how stock levels change over time as stock is used or sold and deliveries arrive.

Something that prevents or disrupts the receipt or understanding of a message.

Making a group of identical or similar products before switching to another batch.

An influence on the collection or interpretation of information that can make the results misleading, such as leading questions.