51 of the Business glossary’s terms, each with the part of the syllabus where you first meet it.
Medium- to short-term objectives set for a department or division, usually by middle managers, that contribute to achieving the organisation's strategic objectives.
The short- to medium-term actions and methods a business uses to carry out its strategy, usually decided by middle managers within one department.
The purchase of a controlling interest in another company; a hostile takeover is one opposed by the target's board, so the buyer offers to buy the shares directly from its shareholders.
An organisational structure with many levels of hierarchy and narrow spans of control, giving a long chain of command.
Assets that have a physical form, such as land, buildings, machinery, vehicles and stock, as opposed to intangible assets.
The market segment or segments that a business chooses to aim its products and marketing at.
The selling price per unit needed to achieve a target profit at a given level of output; fixed costs plus target profit divided by output, plus variable cost per unit.
The level of profit that a business sets out to achieve in a given period.
The level of output a business must sell to achieve a chosen target profit; fixed costs plus target profit, divided by contribution per unit.
A type of organisational culture in which teams are formed to complete specific tasks or projects, and power and influence come from expertise rather than position.
A compulsory payment to the government; in the statement of profit or loss, the tax a company pays on its profits, deducted from profit before tax.
The legal arrangement of a business's affairs to reduce the tax it pays, for example by recording profits in low-tax countries (tax havens) through transfer pricing.
The view that employees are motivated mainly by money, so output is maximised by studying tasks scientifically, training workers in the most efficient method and paying them according to output.
Organising employees into groups that work together and share responsibility for completing a task or meeting a goal.
Reductions in average cost from using larger, more efficient or more specialised equipment and production methods, which only become worthwhile at high levels of output.
Synthetic or mineral materials in a product, such as metals and plastics, that are designed to be recovered and reused in continuous industrial cycles without losing quality.
Changes in technology that affect a business, such as new products and materials, automation, digital platforms, communication and production methods.
The spread of technology, production methods, management practices and skills from a multinational company to workers and businesses in a host country.
Working away from the employer's premises, usually from home, while staying in contact through digital technology; also called remote working.
A contract of employment that lasts for a fixed period or until a specific task is completed, such as seasonal work or cover for an absent employee.
The part of the economy that provides services to consumers and to other businesses, such as retail, transport, banking, tourism, healthcare and education.
Launching a product in a limited geographical area or to a small part of the market for a trial period, to measure customers’ response before deciding on a full launch.
External factors in an organisation’s environment that could damage its performance or its ability to achieve its objectives, such as new competitors, rising costs, recession or new regulations.
An integrated promotional strategy that combines above the line and below the line methods so that they reinforce one another.
The observation and timing of each step of a task in order to find the quickest efficient method of doing it and to set a standard time or output for the job.
A payment system in which employees are paid a fixed amount for each hour worked, often with a higher rate for overtime.
A quantitative forecasting method that studies data recorded at regular intervals over time to identify the trend and the variations around it, and uses them to predict future values.
The principle that a sum of money is worth more now than the same sum in the future, because money available now can earn interest or a return in the meantime.
An AO3 command term asking for the merits of an argument or concept to be weighed, ending in a clear judgment of how far it holds, supported by evidence.
The value of everything a business owns at a given date, calculated as non-current assets plus current assets.
The contribution made by all the units sold in a period, equal to contribution per unit multiplied by quantity sold, or total revenue minus total variable costs.
The sum of all the fixed and variable costs of producing a given level of output: total fixed cost plus total variable cost.
The time by which an activity can be delayed without delaying completion of the project, calculated as the latest finish time minus the duration minus the earliest start time.
An approach to quality in which every employee, in every department, is responsible for continuously improving quality to meet customers' needs, so that quality becomes part of the organisation's culture.
The total income a business receives from selling its output in a period, calculated as price multiplied by the quantity sold.
A tool that generates strategic options by matching an organisation’s strengths and weaknesses with the opportunities and threats from a SWOT analysis, giving SO, WO, ST and WT strategies.
A restriction imposed by a government on the free exchange of goods and services between countries, such as a tariff, quota, embargo or regulation that favours domestic producers.
An agreement with a supplier to receive goods or services now and pay for them later, typically within 30 to 90 days.
The reduction or removal of barriers to international trade, such as tariffs and quotas, often through trade agreements or membership of the World Trade Organization.
Confidential business information, such as a recipe, formula, process or customer list, that gives a business an advantage and is protected by keeping it secret rather than by registration.
An organisation of employees that acts collectively to protect and improve its members’ pay, working conditions and job security, mainly by negotiating with employers.
A situation in which gaining more of one objective or benefit means accepting less of another, such as faster growth at the cost of weaker liquidity or a weaker social mission.
A registered sign, such as a name, logo, symbol or slogan, that distinguishes one business's goods or services from those of others and cannot legally be used by competitors.
The process of improving employees’ knowledge, skills and attitudes so that they can perform their current or future jobs more effectively.
A written record of the essential points of an audio or video file; a business research project may use at most one as a supporting document, from a reliable organisation and traceable to the original.
The prices that different parts of the same multinational company charge each other for goods, services or rights; when manipulated, used to move profits to low-tax countries.
The process by which an organisation converts inputs such as materials, labour, information and equipment into goods and services that are worth more to customers than the inputs alone.
The underlying long-term movement in a set of data over time, upwards, downwards or flat, once short-term fluctuations have been smoothed out.
An approach that judges the performance of a business on its social (people), environmental (planet) and economic (profit) results, rather than on profit alone.
A member of the board that is legally responsible for governing a charity or NGO, making sure that it pursues its purposes and uses its funds properly.
A distribution channel with two intermediaries, usually a wholesaler and a retailer, between the producer and the consumer.