Business key terms

A distinctive feature or benefit that gives customers a particular reason to choose a product or service over competing alternatives.

The key benefit of a good or service that distinguishes it from competitors and can be emphasised in advertising and promotion.

The average cost of producing one unit of output.

Responsibility for business debts that can extend to an owner’s personal assets.

The extent to which the benefits and quality received are worth the price paid.

A cost that changes with output, such as the total cost of raw materials.

The variable cost of producing one unit, calculated by dividing total variable costs by quantity produced.

Finance invested in a business with growth potential, often involving high risk, in exchange for a share of ownership.

A merger or takeover involving businesses at different stages of the same supply chain.

An online meeting in which participants in different locations can see and hear one another.

Promotional content that spreads as people share it with others, especially through social media.

A recognised award gained through study and assessment focused on skills or knowledge related to work.

Pay commonly calculated by multiplying the hours worked by an hourly rate.

Something a person desires that is not essential, such as branded trainers or a luxury holiday.

Materials, products or other resources lost because output is faulty, damaged or otherwise unusable.

Resources or activities that add unnecessary costs or delays without adding value for the customer, such as excess stock, waiting time or defective products.

Removing or treating unwanted materials, including waste that cannot be reused or recycled.

A collection of web pages that a business can use to provide information and services online.

A business that buys goods in bulk from producers and sells them in smaller quantities to other businesses, usually retailers.

People sharing their experiences of a business with others, which can improve or damage its reputation.

People sharing their experiences of a business with others, which can encourage or discourage purchases.

The employees who work for a business.

The physical conditions and social atmosphere in which employees carry out their work.

Carrying out work at home rather than at the employer’s premises, often using digital technology.

A document an employer must provide to employees and workers recording their main employment conditions. It is not itself an employment contract.

The aim of getting work right first time, rather than accepting faults and correcting them later.

An employment arrangement in which no minimum number of working hours is guaranteed and work is offered as required.