Business key terms

An arrangement in which a business grants another person or business the right to use its brand and business format in return for payments.

A business that grants others the right to trade using its brand and business format.

A self-employed person who provides services to businesses on a job-by-job basis rather than being their employee.

A pricing approach that provides a basic product free of charge but charges for additional features or services.

A small quantity of a product given without charge so that customers can try it before buying.

An additional benefit provided by an employer rather than direct cash pay, such as private healthcare or a staff discount.

Employment involving the normal full working week set by the employer.

Working the normal full working week in a business, commonly around 35–40 hours.

The purpose of a product and how well it performs the tasks customers need it to perform.

A specialist area of a business responsible for a particular set of tasks, such as marketing or finance.

An unmet or poorly served customer need that a business could satisfy with a product or service.

Dividing a market according to where customers live, such as their country, region or whether they live in an urban or rural area.

The increasing integration of countries’ economies through cross-border trade and movements of people, technology and finance.

The long-term rise in the Earth’s average temperature, driven by an increase in greenhouse gases in the atmosphere.

A tangible, physical product supplied to a customer, such as a vehicle or a loaf of bread.

The authorities responsible for governing a country, including setting and enforcing laws and collecting taxes.

Funding provided by government for an eligible business or purpose, which normally does not have to be repaid if its conditions are met.

Sales revenue minus the cost of sales, before other operating expenses are deducted.

The percentage of revenue remaining as gross profit: $\frac{\text{gross profit}}{\text{revenue}}\times100$.

A selection task completed by several applicants together while their performance is observed.

The stage when a product's sales increase rapidly as more customers buy it.

A law requiring employers to protect employees’ health, safety and welfare at work, and employees to take care of their own safety and that of others.

Laws requiring businesses to protect people’s health, safety and welfare in connection with their activities.

An organisational structure with many levels of authority, usually a long chain of command and relatively narrow spans of control.

The levels of authority within an organisation, ranked from senior management to lower-level employees.

An arrangement allowing a business to use an asset while paying for it in instalments, becoming its owner after the final payment.

The amount of paid annual leave a worker is entitled to take.

A merger or takeover involving businesses in the same industry at the same stage of production.

A country in which a foreign multinational company operates.

A takeover opposed by the management of the business being bought.