Business key terms

The change in a value expressed as a percentage of its original value.

A discussion between an employee and their manager to assess progress, provide feedback and identify development needs; also called an appraisal.

An employment contract with no agreed end date, continuing until the employee leaves or the employment is ended.

The fulfilment an entrepreneur gains from running a business, pursuing an interest or achieving a goal.

Money saved by an owner and invested in their business.

A document setting out the essential and desirable qualifications, skills, experience and personal qualities required of a job applicant.

A spoken conversation over a telephone connection.

Payment for each item an employee produces.

The distribution channels through which a good or service reaches customers and where it is available to buy.

An arrangement of products and promotional material where customers make purchases, designed to attract attention and encourage buying.

A promotional activity used where customers buy products, intended to attract attention and encourage purchases.

Harmful contamination or disturbance of the environment, including air and water contamination and excessive noise.

Support provided after a customer has bought a product, such as user training, help lines, servicing or repairs.

An expression of approval or appreciation for an employee’s work, given formally or informally.

A selling price above that of comparable alternatives, which customers may accept because they value the product’s quality or other distinctive features.

A price set towards the higher end of the market to reflect or reinforce a product’s perceived quality and value.

An organised delivery of information to an audience, often combining speech with visual material.

An organisation that seeks to influence businesses or government to support a particular cause.

The amount customers are charged for a good or service.

Charging different prices to different customer groups for the same product or service.

Setting a low initial price to attract customers and build market share, with the intention of raising it once the product is established.

A promotional offer that lowers a product’s normal selling price.

Setting a high initial price for a new product, then lowering it over time.

An approach a business uses to decide the price it charges for a product or service.

An approach a business uses to decide the prices it charges for its products.

Collecting new, first-hand information specifically for the business’s research needs; also called field research.

The part of the economy concerned with extracting or harvesting natural resources, such as farming, fishing and mining.

A business owned by shareholders, with limited liability, whose shares cannot be offered for sale to the general public.

An incorporated business owned by shareholders, with limited liability, whose shares cannot be offered for sale to the general public.

The process of sourcing and buying the raw materials, goods and services a business needs.