Business key terms

Keeping employees working for a business rather than losing them and having to recruit replacements.

The proportion of employees who leave a business over a specified period.

A person or group with an interest in a business's activities, such as customers, employees, suppliers or shareholders.

A situation in which stakeholder groups have competing objectives, so satisfying one group may make it harder to satisfy another.

Making products to a consistent specification, rather than designing each item individually for a customer.

Products made to a consistent specification rather than individually designed for each customer.

A product with high market share in a high-growth market.

A business that is being established or has recently begun operating.

Money needed to establish a new business and cover initial costs before sufficient money comes in from sales.

A financial statement showing a business’s assets, liabilities and equity at a particular date; also called a balance sheet.

The goods and materials a business holds for use in production or for sale. Stock is also called inventory.

Managing the amount and timing of stock held so that a business can meet demand without unnecessary stockholding costs.

The process of offering a company’s shares to investors and listing them on a stock market for the first time.

A situation in which a business runs out of an item of stock.

A situation in which a business runs out of a particular item of stock.

An employee in a lower position in the hierarchy who reports to someone with authority over their work.

An employee who organises and oversees the day-to-day work of a group of workers.

A business that provides goods or services to another business.

The amount a supplier charges a business for goods or services.

A supplier’s ability to consistently provide what was agreed, in the required quantity and at the agreed time.

All the businesses, people and activities involved in producing a product and delivering it to the final customer.

Coordinating suppliers, production, storage and delivery so that products reach customers efficiently and cost-effectively.

The extent to which a supplier consistently delivers the agreed goods, in the correct quantity and quality, at the agreed time.

An employee who provides services, such as administration or finance, that help other employees and the business operate.

A research method that collects answers from a group of respondents, usually using a questionnaire.

Continuing to trade rather than closing down.

Meeting present needs without compromising the ability of future generations to meet their own needs.

The purchase of one business by another, giving the buyer control of the acquired business.

An organisational structure with many levels of hierarchy, usually a long chain of command and narrow spans of control.

Online advertising shown to selected users using information such as their location, age, interests or recent searches.