Business key terms

The customer group or groups that a business chooses to aim its products and marketing activities at.

Agreeing objectives for an employee to work towards, against which progress can be assessed.

A tax placed on imported goods.

Compulsory payments that governments require from individuals and businesses.

An employee who guides a team's work, allocates tasks and monitors progress towards its targets.

A reduction in average unit cost because operating on a larger scale allows a business to use more efficient machinery or technology.

The use of tools, equipment and digital systems to carry out tasks or improve products and processes.

Selling products or services over the telephone.

An employment contract lasting for a specified period or until a particular job is completed.

Employment for a limited period or task rather than on an ongoing basis.

The part of the economy concerned with providing services, including retailing and hairdressing.

A brief written message sent from one mobile phone to another.

The sum of fixed costs and total variable costs at a particular output level.

The sum of a business's fixed costs and total variable costs over a period.

The total income received from an investment over its lifetime minus the cost of the investment.

A whole-business approach in which all employees take responsibility for quality, preventing problems and continually improving how work is done.

A group of countries that agree to reduce or remove barriers to trade between their members.

An agreement allowing a business to receive goods from a supplier and pay for them later.

Information describing a product, such as its materials, quantity or performance, which must be accurate.

A decision in which gaining one benefit involves giving up another, such as accepting higher costs to treat workers more fairly.

An organisation that represents employees' interests, including negotiating over pay and working conditions.

A build-up of vehicles on roads that slows traffic and causes delays.

Developing employees’ knowledge and skills so that they can carry out their work more effectively.

The general direction of change in a measure over time.

Launching a product in a limited number of stores or distribution channels for a limited time, using sales figures to help decide whether to proceed with a full launch.

Confidence that another business will act honestly and keep its commitments.

A situation in which a business cannot reliably predict future events or their effects.

A situation in which someone is looking for work but cannot find a job.

The number of unemployed people as a percentage of those working or looking for work.

Not registered as a company with a separate legal identity from its owners.