34 of the Business glossary’s terms, each with the part of the syllabus where you first meet it.
Research and development spending expressed as a percentage of sales revenue, used to compare how much businesses of different sizes invest in R&D.
A sampling method in which every member of the population has an equal chance of being selected, for example by using a random number generator on a list of the population.
An irregular, unpredictable movement in data caused by one-off events such as extreme weather, strikes or accidents, which cannot be forecast from past patterns.
A measure of spread equal to the difference between the highest and the lowest values in a data set.
A quantitative management tool that uses figures from the final accounts to calculate ratios, which are compared over time and with other businesses to judge financial performance.
The person or group for whom a message is intended, who decodes it and interprets its meaning.
An AO3 command term asking for an advisable course of action for a given situation, supported by evidence and reasons, usually after comparing the options.
The process of identifying the need for a new employee, defining the job and the person needed, and attracting suitable candidates to apply.
A business that finds, screens and puts forward candidates for an employer’s vacancies in return for a fee.
The termination of an employee's contract because the job no longer exists or fewer workers are needed for that kind of work, not because of the employee's performance or conduct.
A future cost that changes as a result of a decision, such as variable costs and avoidable fixed costs; costs that stay the same whichever option is chosen are not relevant.
The level of stock at which a new order is placed, equal to the buffer stock plus the usage rate multiplied by the lead time.
The amount of stock ordered each time an order is placed, equal to the maximum stock level minus the buffer stock.
Changing customers' perception of a product or brand relative to competitors, usually to appeal to a different or larger target market.
The systematic investigation and creative work a business carries out to discover new knowledge and use it to develop new or improved goods, services and production processes.
The precise question, naming one organisation and one issue, that a business research project sets out to answer and that its conclusion must answer explicitly.
The return of production or other business activities from another country to the business's home country, reversing an earlier decision to offshore them.
The amount a business expects to receive for a non-current asset when it sells or scraps it at the end of its useful life.
The unwillingness of employees or other stakeholders to accept or adapt to a change in the workplace, shown through opposition, delay, low morale or leaving the organisation.
A circular business model in which a business recovers useful materials, components or energy from waste, by-products or used products and uses them to make new products.
The duty to complete a task or achieve an outcome; a manager who delegates a task can pass on authority but keeps overall responsibility for it.
The internal and external factors that hold an organisation back from a proposed change, such as its cost, a lack of finance, employees' fear of job losses, existing culture or regulation.
A business that buys products from producers or wholesalers and sells them in small quantities to the final consumer, in shops or online.
The total of all the profits a business has kept since it started, after tax and dividends, shown as part of equity in the statement of financial position.
The profit left after tax and dividends have been paid, which is kept in the business and can be reinvested.
The ability of an organisation to keep its employees, measured by the proportion of staff who stay with the organisation over a period of time.
Profit before interest and tax expressed as a percentage of capital employed, measuring the profit generated from the long-term finance invested in a business.
Spending on the day-to-day running costs of a business, such as wages, rent, utilities and raw materials, whose benefit is used up within the year.
A distinct source from which a business earns revenue, such as product sales, subscriptions, advertising, licensing, commission or renting out assets.
The process of identifying the risks a business faces and judging how likely each one is to happen and how serious its impact would be, so that the most important risks are planned for first.
The ability of a large business to spread risk across many products and markets, so that a loss in one area can be absorbed by the others.
A type of organisational culture in which power comes from a person’s position in the hierarchy, and work is controlled by rules, procedures and clearly defined job roles.
A regular payment made to the owner of a brand, patent or other intellectual property for the right to use it, usually a percentage of sales revenue.