48 of the Business glossary’s terms, each with the part of the syllabus where you first meet it.
The buying and selling of goods and services over the internet, through websites, apps and online marketplaces.
The earliest time at which an activity can begin, given that all the activities it depends on must first be completed.
Changes in the economy that affect a business, such as economic growth, inflation, interest rates, exchange rates, unemployment, taxation and consumer incomes.
The ability of an organisation to operate profitably and efficiently over the long term, using its resources in ways that allow it to survive, invest and grow.
The reductions in average cost (cost per unit) that a business gains as it increases its scale of operation.
An approach to managing change in which managers explain the reasons for and effects of a change to employees before and during its introduction, so that they understand and accept it.
The extent to which an organisation achieves its intended objectives, such as producing what customers want, at the quality they expect and when they need it.
How well an organisation uses its resources to produce output, measured by the inputs or cost needed for each unit of output, such as cost per unit or output per worker.
A ratio that measures how well a business manages its assets and liabilities, such as how quickly it sells stock, collects debts and pays suppliers, and how much it relies on long-term debt.
The transfer of messages using digital technology, such as email, intranets, instant messaging, collaboration platforms, video conferencing and social media.
The use of technology by an employer to collect data on employees’ activities, location, communications or output, in order to manage performance, productivity, safety or security.
The involvement of employees in decision-making in their organisation, through methods ranging from consultation and suggestion schemes to works councils and representation on the board.
An employee elected or appointed to represent the views and interests of colleagues in discussions with management, such as a union representative (shop steward) or a works council member.
An organisation of employers, usually in the same industry, that represents their shared interests, advises members on employment matters and may negotiate with trade unions on their behalf.
Giving employees the authority, resources and trust to make decisions about their own work and to solve problems without referring them to a manager.
A person who sets up a business, organising the factors of production and taking the financial risk of doing so in the hope of making a profit.
The process of identifying a business opportunity and organising resources to exploit it while accepting the risks involved; also called enterprise, the fourth factor of production.
Changes in the natural environment, and in concern for it, that affect a business, such as climate change, extreme weather, the supply of natural resources, pollution and waste.
Operating in a way that does not damage the natural environment or use up natural resources faster than they can be replaced, for example by cutting emissions, waste and pollution.
The owners' stake in a business, made up of the capital they have put in (share capital for a company) and the profits kept in the business (retained earnings); equal to net assets.
A theory that employees compare the ratio of their outputs (rewards) to inputs (contributions) with that of a referent, and that perceived unfairness reduces motivation.
Moral expectations about how a business should behave that go beyond the law, such as fair treatment of workers and suppliers, honest marketing and responsibility towards the environment and communities.
Targets based on moral principles, such as fair treatment of workers and suppliers or care for the environment, that a business pursues even when the law does not demand them.
The moral principles that guide the behaviour of a person or group, used to judge whether a decision or action is right or wrong.
A form of observation in which researchers study people in their own everyday surroundings, such as homes or shops, over a period of time, to understand how and why they behave as they do.
An AO3 command term asking for an appraisal that weighs up strengths and limitations and reaches a supported judgment.
An AO3 command term asking for an argument or concept to be considered in a way that uncovers its assumptions and the interrelationships within the issue.
The price of one currency expressed in terms of another currency, for example £1 = US$1.25.
A short overview at the start of a business plan that states the business idea, its market, its management, its main financial forecasts and the finance requested, so that a reader can judge the plan quickly.
A theory that effort depends on the belief that effort leads to performance (expectancy), that performance leads to a reward (instrumentality), and on how much the reward is valued (valence).
The weighted average financial result of an option, found by multiplying the value of each possible outcome by its probability and adding the results.
The indirect costs of running a business over an accounting period, such as salaries, rent, marketing, insurance and depreciation, deducted from gross profit in the statement of profit or loss.
An AO2 command term asking for a detailed account that includes reasons or causes, showing how and why something happens, applied to the context.
An approach to managing change in which managers force employees to accept a change by using their authority and the open or implied threat of negative consequences.
Selling goods or services produced in the home country to customers in other countries, either directly or through an intermediary such as an agent or distributor.
A 10-mark exam answer in continuous prose that applies tools and theories to the case, weighs arguments and reaches a justified conclusion or recommendation, marked against markbands.
A method used to lengthen the life of a product by preventing or delaying the decline in its sales, such as new markets, new uses, repackaging or product improvements.
Increases in average cost that a business suffers because its industry has grown too large in an area, for example through congestion or rising land and labour costs.
Reductions in average cost that a business gains from the growth of its industry, often in one location, rather than from its own growth.
The factors outside an organisation that affect its activities and performance but that it cannot directly control, such as economic conditions, laws, technology and social trends.
Growth achieved by joining with, buying or cooperating with another business, through mergers, acquisitions, takeovers, joint ventures, strategic alliances or franchising; also called inorganic growth.
Filling a vacancy with a person from outside the organisation, for example through advertisements, online platforms, agencies or headhunting.
Money raised from people or organisations outside the business, such as shareholders, banks, suppliers, investors and other lenders.
Individuals and groups outside an organisation who are affected by, or can affect, its activities, such as customers, suppliers, government, financiers, the local community and pressure groups.
Extending a trend or relationship found in past data beyond the range of those data in order to predict future or unobserved values.
The drive to do an activity in order to gain a separate outcome, such as pay, a bonus or praise, or to avoid a punishment.