Business key terms

The legal structure of a business, which determines who owns it and how ownership is organised.

A written document describing a business, its objectives, how it intends to operate and develop, and its financial forecasts.

Deciding in advance what a business will do and how it will organise its activities to achieve its aims and objectives.

The achievement of positive business outcomes, such as growth, excellent products or services, recognition and owner satisfaction.

The ability of a business to continue operating rather than close down.

A risk taken after considering its likelihood, possible consequences and potential benefits.

The human-made resources used in production, such as machinery, tools and equipment.

Spending on long-term assets, such as machinery, buildings or vehicles, which a business expects to use over several years.

Money available to a business as notes, coins or money in its bank account.

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

The movement of money into and out of a business over a period of time.

A prediction of future cash inflows, cash outflows and cash balances, usually shown month by month.

Money entering a business during a period, such as customer payments or a loan received.

Money leaving a business during a period, such as payments for materials, wages or equipment.

A situation in which a business does not have enough available cash to meet the payments it needs to make.

An official survey of the population that gathers information about people and households.

Keeping decision-making authority mainly with senior management at the centre of a business.

The formal line of authority through an organisation, showing who reports to whom.

Software that responds to users' messages automatically, for example to answer customer enquiries.

The range of products, services or options available to customers.

An approach in which a business sells through both physical shops and online.

Long-term changes in temperatures and weather patterns. Current climate change is driven mainly by human activities, including burning fossil fuels.

The cash balance at the end of a period, calculated as opening balance plus net cash flow.

Keeping files online so that authorised users can access and share them from different devices and locations.

An asset offered as security for borrowing, which the lender may take if the borrower fails to repay.

Payment linked to the value of sales achieved, usually calculated as a percentage of sales revenue.

The passing of information from one person or organisation to another.

The route or method used to pass information between people or groups in a business.

Rivalry between businesses trying to attract the same customers.

A feature or strength that helps a business attract customers rather than lose them to rival businesses.