Key Terms

• External Growth - When a business grows by joining with another business whether they will be a merger or a takeover.
• Loan capital - funding borrowed from financial institutions
• Price Skimming - A business will set a high price for its products as it is launched into the market.
• Price Penetration - A business will sell a product at a low price.
• Distribution Channel - The route that takes from where it is manufactured to where it is sold to the end consumer.
• Competitive Advantage - A gain that a business has over its rival in the market
• Job Production - This involves the manufacture of a single, unique product made to the specific requirements of the customer.
• Batch Production - This is used to make sets of identical products in batches.
• Just in Time (JIT) stock control - This is used by businesses that hold no stock.
• Quality Control - This involves checking the quality of a product at the end of the production line by a team of quality controllers and inspectors.
• Quality Assurance - This requires each individual worker to be responsible for the quality of their work.
• Organisational Structure - The way in which a business is organised in terms of its structure.
• Centralised Structure - A business structure where the main decision-making powers rest with senior management
• Jargon - The use of technical language can be hard to understand