Business key terms

The people who work for a business.

The part of a business responsible for identifying and meeting its workforce needs and managing employees.

Information and communication technology: the computers, networks and software used to store information and communicate.

A good or service bought from another country.

A tax charged on imported goods.

Money a person receives, for example from employment, which influences how much they can afford to spend.

A financial statement showing a business’s revenue, costs and profit or loss over a period of time.

Registered as a company with a legal identity separate from its owners.

The freedom an owner has to work for themselves and make their own business decisions.

The freedom an entrepreneur has to make decisions about their business and its direction.

A tax on spending, such as Value Added Tax (VAT).

Training that introduces a new employee to a business, its procedures and their role.

A general increase in the prices of goods and services over time.

Learning through everyday work, such as watching an experienced colleague and receiving guidance, rather than following a structured course.

Computers, software and communication technologies used to store, process and share information.

The original amount spent on an investment project.

Introducing a new idea, product or way of doing things, or improving an existing one.

The inability of a business to pay its debts when they fall due.

Checking products or work against an agreed standard to identify faults or departures from that standard.

Too little communication, leaving people without the information they need.

A combination of product, price, place and promotion decisions that support one another and suit the business’s target market and objectives.

The reliance of different parts of a business on one another to carry out their work and achieve shared objectives.

The charge paid for borrowing money.

The percentage charged for borrowing money or paid as a reward for saving money over a stated period.

A business between a producer and the final customer that helps distribute or sell a product, such as a wholesaler or retailer.

The exchange of information between people working within a business.

Information held within a business, such as sales figures, customer records and records of previous marketing campaigns.

Finance generated from resources already within a business, such as retained profit or money raised by selling assets.

Expansion through developing a business’s own activities, such as launching new products or entering new markets, rather than joining with or buying another business.

Filling a vacancy with someone who already works for the business, through promotion or redeployment.