Business Studies - AQA - GCSE - Business Studies Key Terms

Question	Answer
B2B	Business to Business
B2C	Business to Consumer
Job Description	A document that covers the employee's responsibilities.
Person Specification	A description of qualifications, skills, knowledge, experience, etc. (Selection criteria)
Advertise	Publicise information (about a vacancy)
Shortlist	A list of candidates from which the final decision is made.
Interview	Meeting between the employer and the candidate.
Full-time employee	Normal working employees, usually working between 35 and 40 hours per week.
Part-time employee	Employees that work only a certain amount of time each week, usually around 20 hours per week.
Zero hour contracts	Workers that are called in when help is needed, or whenever they can. Work as much or as little as either party wants.
Salary	Fixed amount worked out annually, typically paid monthly. E.g. £30,000 per annum.
Wage	Paid per hour. E.g. Working 10 hours at £6.70, receive £67.
Time in lieu	Time taken off because of hours worked overtime.
BOGOF	Buy One Get One Free
Price Skimming	Setting a high initial price to make maximum profit (buyers are called early adopters).
Development	The stage of the product life cycle where the product is still in development. No sales are made.
Introduction	The stage of the product life cycle where the promotion levels are high and sales are increasing for the product or service.
Growth	The stage of the product life cycle where the sales are increasing fairly dramatically. Promotion levels decrease.
Maturity	The stage of the product life cycle where sales begin to level off.
Decline	The stage of the product life cycle where the sales of a product or service begins to decrease.
Withdrawal	When a product or service is removed from the market.
Promotional Mix	A variety of methods used by a business to promote the brand image and products.
Direct Selling	Selling a product directly to the customer, thus bypassing third parties.
Brand Loyalty	Having a set of customers who will repeatedly buy a certain brand of products (over another).
Telesales	Sales made in call centres that are used specifically to contact customers and sell them products or services.
Friendly Credit Terms	Financial option for customers who are unable to pay in full at the point of sale (monthly payments).
Collateral	A valuable asset used as security by a business when taking out a loan.
Wholesale	A business that buys in bulk and distributes its products to retailers (and in some cases, consumers).
Distribution Channels	The different channels a product goes through before reaching a customer.
Price	How much the customer pays for the product.
Market Share	The percentage of the market that belongs to one business.
Balance Sheet	A table showing the assets and liabilities that a business holds at a particular time.
Point of sale	The place in which a customer is deciding whether to proceed with the purchase of a good directly in front of them.
Horizontal Integration	Taking over or merging with firms on the same stage of the production chain.
Vertical Integration	Taking over or merging with firms on a different stage of the same production chain.
Overheads	Costs not directly tied to the production of goods.
Price Penetration	Setting a very low price to gain as many sales as possible (and then raising it after those sales have been achieved).
Adding Value	Making a product more attractive to customers. Add new features to the current product.
Exchange Rate	The cost of converting on currency into another.
Merchandising	Encouraging customers to make a purchase at the point of sale (like putting impulse buy products at the tills).
Loss-Leader	Setting extremely low prices in order to attract customers into the store to buy other complementary goods.
Stock Exchange	A market designed for the sale of shares from plcs to the general public.
Overdraft	Exceeding the money in your bank and using short term finances previously arranged with the bank.
Interest Rates	The cost of borrowing money charged on top of the total sum borrowed from a bank.
Merger	Two firms joining together in order to reap the benefits of larger market share.
Below The Line	Promotional methods that are directly aimed at an individual.
Above The Line	Promotional methods that are not specific to individuals.
Sponsorship	Paying a fee in order to have a famous individual or event publicise your product or business.
Price mark-Up	A percentage added onto the production cost in order to set a new price for a good or service.
Brand Logo	An image used to help identify the business from competitors.

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Business Studies - AQA - GCSE - Business Studies Key Terms

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	Created by Josh Anderson over 8 years ago