Business key terms

The activity of identifying a business opportunity, organising resources and taking risks to turn an idea into a business.

A person who sets up and runs a business, organising resources and taking risks in pursuit of its success.

The activity of setting up and running a business by organising resources, making decisions and taking risks.

Making decisions that take account of environmental impacts and aim to prevent or reduce environmental harm.

A law protecting people against unlawful discrimination, including in recruitment and employment.

The owners’ financial interest in a business, equal to total assets minus total liabilities.

A business that has been operating for some time and has a trading history.

A business that sells goods to consumers online.

Business behaviour that stakeholders consider fair and honest, reflecting judgements about what is morally right.

A set of principles intended to guide the behaviour and decisions of people within a business.

A target concerned with behaving fairly and responsibly, such as treating workers fairly.

Obtaining materials, components, products or services from suppliers whose practices meet ethical standards, including fair treatment of workers.

Too much communication, overloading people with messages and information.

The price of one currency expressed in terms of another currency.

The indirect costs of running a business, such as office rent and administration costs, deducted from gross profit to calculate net profit.

A good or service sold to a customer in another country.

An action intended to maintain or increase sales of an existing product, delaying its decline and extending its life.

Communication between a business and people or organisations outside it, such as customers or suppliers.

A harmful effect of business activity borne by people outside the business, such as disturbance to nearby residents from delivery noise.

Information obtained from outside a business, such as published statistics, newspaper articles and market reports.

Money obtained from outside a business to help fund its activities, such as a bank loan or investment.

Expansion by combining with another business through a merger or takeover.

A factor outside a business’s immediate control that can affect its activities, decisions or performance.

Expansion through combining with or gaining control of another business, using a merger or takeover.

Filling a vacancy with someone from outside the business.

Funding obtained from outside a business, such as borrowing, investment from new shareholders or government grants.

An individual or group outside a business, such as a customer, supplier or local resident, that affects or is affected by its activities.

Selling through direct, in-person interaction between a customer and a business representative.

A resource used to produce goods or provide services. The four factors are land, labour, capital and enterprise.

A certification system with standards intended to support fairer trading conditions for producers and workers, including farmers in developing countries.