Business key terms

Selling from a producer to a final customer without a wholesaler or retailer acting as an intermediary.

A person responsible for the overall direction and performance of a company, including its objectives and major decisions.

A tax paid on income or profit, such as income tax or corporation tax.

Unfair treatment because of a characteristic such as age, disability, race, sex or religion.

An increase in average unit cost caused by inefficiencies as a business becomes larger.

Income remaining after income tax and other compulsory deductions, available to spend or save.

The route through which a product reaches its final customer, either directly from the producer or through other businesses.

Developing different products or serving different markets to reduce dependence on one source of sales.

A payment to shareholders from a company's profits.

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

The customers and potential customers within a business’s own country.

The ability of a product to last for its expected useful life.

The constantly changing conditions in which businesses operate, requiring them to respond to new opportunities and threats.

A market in which technology, consumer wants and the products or services offered change over time.

The buying and selling of goods and services over the internet.

The overall economic conditions in which businesses operate, including interest rates, employment levels and consumer spending.

Reductions in average unit cost that can result as a business increases its scale of production.

A reduction in average unit cost resulting from a business increasing its scale of production.

Communication in which a message is received, understood and acted upon in the way intended.

Using resources with as little waste as possible to produce goods or services while maintaining the required quality.

An electronic message sent to one or more email addresses, which can include attached files.

A person who works for a business in return for pay.

An employee’s willingness or desire to put effort into their work and achieve goals.

How effectively an employee carries out their work, including the quantity and quality of their output and their reliability.

Keeping employees within the business rather than losing them to other employers.

An organisation that supplies workers, often for temporary vacancies. In this arrangement, the business pays the agency, which pays the worker.

Laws protecting workers’ rights and governing how employers treat them.

Laws that set rules for how employers recruit and treat people at work.

A legal body that hears disputes concerning employment rights, including discrimination claims.

An email containing business news, product information or offers sent to people on a business’s mailing list.