Business key terms

Funding generated within a business or provided from its owner's own resources, such as retained profit, sales of unwanted assets or personal savings.

An individual or group within a business, such as its owners, managers or employees, with an interest in its activities.

Using a recognisable business or product identity across national markets, with adaptations where needed.

A structured meeting in which an employer asks an applicant questions to assess their suitability for a job.

The stage when a product is launched onto the market and sales are usually low and grow slowly.

The creation of a new idea, product or technology that did not previously exist.

Money spent on an asset or project in the expectation of generating future benefits, such as additional profit.

Specialist words or expressions used by a particular group that other people may not understand.

Investigating a job to identify its tasks and responsibilities and the skills and qualities needed to perform it.

A document setting out the features of a job, including its duties, responsibilities, hours, location and pay.

Making a job more challenging and meaningful, often by giving an employee greater responsibility.

A production method in which each individual product or customer order is completed separately to meet specific requirements.

The tasks and duties an employee is expected to carry out.

Moving employees between different tasks or roles to provide variety and broaden their skills.

An arrangement in which two people, or occasionally more, divide the hours and responsibilities of one job between them.

A stock management approach in which a business holds spare stock to protect against supply shortages or unexpected increases in demand.

A stock management approach in which materials and components arrive when needed for production, keeping stock levels very low.

Continuous improvement through small, ongoing changes to working practices, often involving employees’ suggestions.

The human effort, skills and knowledge used in production.

The workers available to a business in an area, including their skills and experience.

Output per worker over a given period of time.

The rate at which employees leave a business and need replacing.

The uncertainty of an owner's income and the absence of guaranteed employment benefits, such as sick pay and paid holidays.

The natural resources and physical sites used in production, including land, water and raw materials.

The time between placing an order and receiving it.

An approach to production that reduces waste while maintaining or improving quality.

The form of business ownership that determines matters such as control, responsibility for debts and how profits can be distributed.

Laws that set requirements for how individuals and organisations behave.

A written message, often used for formal business communication, which can be posted or attached to an email.

A letter accompanying a CV or application form that explains why the applicant wants the job and is suitable for it.