| Key Word | Definition |
|---|---|
| Analysis | The process of looking at data to identify patterns and trends |
| Asset | Any item of value owned by an individual or business |
| Bank Loan | A fixed sum of money borrowed from a bank. It must be repaid with interest in set payments over an agreed period of time |
| Bank of England | The central bank for the UK. It manages the country's debts, sets interest rates and influences the exchange rate between the pound and other currencies |
| Biased | Allowing influences to affect decisions and resulting in unfairly presented evidence |
| Break-even Point | The point at which the costs are all covered by received revenue |
| Budgets | Pre-set financial targets for a business to achieve in a given period of time |
| Bulk-gaining Product | A product that is larger than the raw materials used to make it |
| Bulk-reducing Products | A product that is smaller than the raw materials used to make it |
| Business Plan | A document outlining how an entrepreneur is going to set up a new business |
| Cash Flow | The amount of money coming in and going out of a business and the timing of the movements |
| Chamber of Commerce | A local association with the purpose of promoting the interest of businesses in a region or county |
| Cheque | A written form of payment from a bank account to a specified person or business |
| Comply | To obey a command, law or to meet a set of standards |
| Conflict | A serious disagreement between people, countries or ideas |
| Consumables | Items that are used up by a business and need replacing regularly (for example; Pens, paper, staples) |
| Consumer | Someone who buys and uses goods and/or services |
| Convenience | The ease of access to a product or service with minimal disruption to the customer's lifestyle or routine |
| Convenience Good | A product that a customer buys frequently or routinely |
| Cookies | Small files stored on a customer's computer when they visit a website which record details about the visit and can be accessed by the website again on future visits. |
| Credit | Money leant to a business by a financial institution or supplier which must be paid back during an agreed time period |
| Credit Check | A check on the financial status of an individual or business to ensure they have a reliable credit history with no outstanding debts |
| Data | Information that can be collected and analysed - most frequently, in the form of statistics |
| Deed of Partnership | A legal document defining the terms of a partnership |
| Demographic | Relating to the population, such as average age or average income |
| Discrimination | When someone is treated differently because of a particular characteristic such as gender, ethnicity, disability |
| E-Commerce | Business transactions carried out over the internet |
| Economy | The system by which a country's money and goods are produced and used |
| Enterprise | An entrepreneurial activity. Sometimes used to describe a company or business. |
| Entrepreneur | Someone who creates a business |
| Ethics | Moral principles or standards that guide the behaviour of a person or business |
| Exports | The flow of goods and services out of a country to other countries |
| Financial Reward | The money an entrepreneur or investor receives when a business succeeds |
| Focus Group | A group of people who review a product, service, advertisement or idea (this can be done face-to-face or online) |
| Footfall | The number of people passing a particular location within a given time period |
| Franchise | When a business allows another business permission to trade using its name in return for a fee or share of the profits |
| Franchisee | An entrepreneur who pays a fee to trade using the name and products of an established business |
| Franchisor | An established business that gives permission to an entrepreneur to trade using its name and products |
| Generation Y (aka Millennials) | Refers to people born between 1980 and 2000 |
| Globalisation | When a business operates on an international scale and gain international influence or power |
| Gross Profit | The amount of profit a business makes before deducting costs |
| Guarantor | A named person who will guarantee the repayment of a loan should the person or business taking out the loan fail to make the payments |
| Imports | The flow of goods and services into a country from other countries |
| Incentive | A payment or gift to encourage someone to do something |
| Income Statement | A financial document showing the amount of money a business has earnt and spent over a particular period |
| Income Stream | Source of regular income received by a business. Could be from customers or investors |
| Incorporated | A business that is registered as a company so the owners and the business are legally separate |
| Induction | A period of time at the start of each employees contract when they must be shown how to work safely and within the employer's expectations |
| Inertia | A tendency to avoid change |
| Insolvent | Unable to pay off debts and/or owes more money than owed. |
| Intuition | Knowing something instinctively or understanding something easily without conscious thought |
| Investment | Money put into a business with the intention of making a profit |
| Labour | Workers or the workforce |
| Legislation | The laws that a business must comply with |
| Levy | A tax on a particular product or service |
| Limited Liability | The risk of loss is limited to the amount of money invested in the business |
| Loyalty | Wanting to always support the same something or someone |
| M-Commerce | Business transactions carried out using mobile technologies (for example: smartphones or tablets) |
| Market Research | The process of gathering information about the market and customers to help make informed business decisions |
| Market Share | The proportion of sales in a market taken by one business |
| Marketplace | The activities involved in buying and selling particular types of goods and services in competition with other companies |
| Multi-channel | Using a variety of methods to reach a customer |
| National Living Wage | The minimum amount that a business is legally allowed to pay an employee |
| Negative Cash Balance | When the cash available at the end of a given time period is less than the cash at the beginning |
| Obsolete | Out-of-date or not used anymore |
| Overdraft | A facility offered by a bank to allow an account holder to borrow money at short notice if available funds are exceeded |
| Overheads | Fixed costs that come from running a business which are not affected by how many products or services sold |
| Partnership | A business owned by a group of two or more people who share the financial risk, decision-making and profits |
| Payment Platform | Allows business to take online payments. This is usually free for the customer, but takes a small commission from the seller |
| Payment Terms | The period of time that a business has to pay its suppliers |
| Price War | When competing business continually try to undercut each other. Only the consumer benefits from this. |
| Private Limited Company | A shareholder owned incorporated business |
| Product Differentiation | Designing a product with unique features that distinguish it from similar products sold by competitors |
| Profit | The amount of revenue remaining after costs have been deducted. |
| Promotional Mix | A combination of promotional activities used to increase customer awareness of the product to increase sales |
| Protected Characteristic | Characteristics of a recruitment candidate that cannot be used to reject them, such as pregnancy, gender, religion |
| Public Limited Comapny (PLC) | An incorporated business that can sell shares to the public |
| Real-time | Live or as it happens |
| Reasonable Care | In consumer law this means offering a service that is suitable for customers |
| Recession | A period of economic decline characterised by when an economy has failed to grow for six consecutive months |
| Retained Profit | Money that a business keeps instead of paying out to its shareholders |
| Return on Investment | How much money an investor gets back in return |
| Revenue | The money a business gains through sales |
| Revenue Forecast | A prediction of future revenue based on expected sales (determined by judgment or on previous sales) |
| Risk | The possibility that an enterprise will have lower profits or experience a loss |
| Sales Revenue | The amount of money coming in from sales |
| Sample | A section of the population asked for opinions to establish conclusions about the behaviour of the whole population |
| Security | This refers to an asset (such as a house, or business premises) offered as insurance against a loan. If the loan is not paid the creditor can claim the asset as theirs. |
| Segmentation | The process of breaking something down into smaller parts |
| Share Capital | Money raised by selling shares of the company to investors |
| Shareholders | Investors that are part-owners of a company. They invest to earn a share of the profit and voting rights at the AGM |
| Shopping Good | A product that a customer takes time to consider before purchasing |
| SMART Objectives | Business goals that are Specific, Measurable, Achievable, Realistic, and Time-bound |
| Social Media | Websites that allow users to interact and share messages/pictures/links |
| Social Objectives | These are aims set due to social pressures, such as reducing carbon emissions or participating in community projects. |
| Sole Trader | An unincorporated business with a single owner |
| Source | A place, person or thing from where information was obtained |
| Stakeholder | Anyone with an interest in the activities of a business, such as employees/suppliers/directors/local community/government |
| Start-up | A new business - usually with very small staff numbers |
| Stock Exchange | A place where shares in PLCs can be bought or sold |
| SWOT Analysis | A study done by businesses to identify Strengths, Weaknesses, Opportunities and Threats |
| Target Market | A particular group of consumers to which a company aims its products and services |
| Tax | A proportion of an individual's income of business's profits that must be paid to the government |
| Topography | The physical characteristics of a landscape (for example; flat, hilly, urban, country) |
| Trade Association | An organisation formed and funded by businesses that operate in a specific industry |
| Trade Credit | This is credit offered only to businesses by suppliers |
| Undercut | To sell the same product as a competitor at a lower price |
| Unincorporated | A business that is not registered as a company and so the owners and business are legally the same body |
| Unique Selling Point (USP) | Something that makes a product stand out from its competitors |
| Unlimited Liability | The level of risk goes beyond the amount invested meaning their assets could be used to repay any business debts |
| Valid | Having an accurate or solid basis of facts |
| Values | Standards of behaviour or moral principles |
| Venture Capital | Money invested by individuals or groups into a new business |
| Viable | Has shown to work properly or successfully |