business

• Adding value


  How a business sells a product for more than it costs through the processes they apply
• Advertising


  Promotional method where a business pays to place an advert in a form of media, such as a newspaper or television
• Aesthetics


  The attractiveness of the design of a product
• Aims and objectives


  The overall goals of a business or organisation identifying what the business is trying to achieve
• Application form


  A method of applying for a job where the required details are decided by the business who is recruiting
• Autonomy


  The independence a worker has within their job
• Average rate of return

  The annual percentage profit that an investment makes compared to the cost of the investment
• Bar gate stock control graph

  A method of displaying data on stock levels, which allows stock control policy to be decided, implemented and reviewed within a business
• Batch production


  Method of production where groups or types of products are made at several stages
• Bonus


  An extra amount of financial pay received through achieving a business target
• Branding


  What distinguishes a good or service from rivals
• Break even


  Where total revenue is the same as total costs and no profit or loss is made
• Buffer stock


  A quantity of stock kept in store to safeguard against unforeseen shortages or demands
• Business


  An organisation set up to meet customer demand and to make a profit for its owners
• Business environment


  The external factors such as the economy and the law that influence how a business operates
• Business plan


  A document produced by a new or existing business that shows what its objectives are and how it will meet them
• Capacity


  The maximum production output a business can achieve with its existing resources
• Capital


  The initial money that is needed to start a business that is normally linked to purchases of machinery and premises
• Cash-flow


  The money that flows into and out of a business from sales and expenses
• Cash-flow forecast


  The prediction of how much money will come into and out of a business over a future time period
• Cash inflow


  The money that comes into a business from sales and other sources
• Cash outflow


  The money leaving a business that it spends on raw materials, labour and other expenses
• Centralised


  Where business decision making and implementation take place at and from the business headquarters
• Chain of command


  Part of the structure of a business organisation which shows who is in charge of who
• Closing balance


  The total cash-flow left at the end of a period
• Commission


  The extra amount of pay workers receive as a percentage of their or the business's sales
• Communication


  How messages are passed within a business or from a business to its customers
• Competition


  Other businesses that produce the same or similar goods or services
• Competitive advantage


  A business has a marketing mix which enables it to be more successful than its competitors
• Competitive environment


  The number and strength of other businesses in the same market
• Competitive pricing


  Where the price of a product is decided by comparing it to its rivals
• Consumer


  The person or business that use the good or service produced
• Consumer income


  How much money consumers have to spend on their needs and wants
• Consumer law


  Legal constraints that protect the consumer from unfair business practice
• Consumer Rights


  Where consumers are protected by laws in terms of product quality, returning goods, repairs and replacements, digital content and delivery
• Consumer spending


  The level of spending that consumers undertake related to their income
• Cost plus


  A pricing method where a business decides what price to charge based only on the cost of its production and some extra to make a profit
• Crowd funding


  Finance raised through internet appeals from a large number of small investors
• Curriculum Vitae


  A document summarising the personal details, qualifications and experiences of an individual. Often used to apply for a job
• Customer engagement


  Communicating with customers in a positive way