Business Studies Keywords List

All the keywords you would possibly need to know for the AQA Business Studies Exam Unit 1 and Unit 2

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  • Created on: 20-02-16 11:40
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Business Studies Keywords
Section 1: The business Environment
[Unit 1:Business in its environment]
Business an organisation which produces goods and services
Capital goods physical goods used to produce other producer and
consumer goods and services
Consumer the person who ultimately uses (or consumes) a
product
Consumer goods goods and services which are sold to people
(consumers) rather than other business
Customer any person or organisation which buys or is supplied
with a product by a business
Factors of production land(natural resources),labour(workers) and
capital(defined above in capital goods) used in the
production process
Goods physical products,like car or a cabbage
Labour workers used in the production process
Land natural resources used in production process
Needs the basic products that people need in order to
survive: food,drink,shelter,warmth and clothing
Producer goods goods which are sold by one business to another and
which are then used to produce other goods and
services
Products goods made or services provided by businesses
Raw materials natural resources,like copper or coffee beans,used to
make products
Services nonphysical products,like a haircut or a train journey
Wants the desire to consume goods and services.Wants are
unlimited because there is no limit to the amount of
goods and services people would like to consume.
[Unit 2 The market]
Market where buyer and sellers meet to exchange goods
and services
Market forces the forces of buying(or demand) and selling (or
supply) which determine price and quantity bought
and sold in a market
Opportunity cost the benefit lost from the next best alternative when
making a choice
[Unit 3 Types of economy]

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Command economy economy where most consumer goods and services
are produced by the public sector
Economy a system,a set of rules,which influences what is
produced,how it is produced and who receives the
products
Free market economy economy(or economic system) where over 60% of
consumer goods and services are produced by
businesses and sold through markets
Mixed economy economy where over 40% of consumer oods and
services are produced by the state and not sold
through markets
Private sector the rest of the economy apart from…read more

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Social costs and benefits = private
costs and benefits plus externalities
[Unit 6 Business in the national economy]
Boom period of time when the economy is growing
particularly fast
Inflation a general rise in prices
Recession period of time when the economy is slowing down or
output is even falling
[Unit 7 Organisations in the public sector]
Municipal enterprises business which are owned by local authorities and
which get at least part of their revenues by charging
customers for services
Nationalisation the purchase by the…read more

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The balance of trade visible exports minus visible imports
The current account balance exports(both visible and invisible) minus imports
(both visible and invisible)
[Unit 9 The European Union]
The European Union(EU) The European Union is an economic and political
union of 28 countries. It operates a single market
which allows free movement of goods, capital,
services and people between member states.…read more

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Sole proprietorships a business owned by a single person who has
unlimited liability
Sole trader/sole proprietor the owner of a sole proprietorship business
Unlimited liability a legal obligation on the owners of a business to
settle (pay off) all debts of the business.…read more

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Consumer(or retail) cooperative a business orgainsation owned by customer
shareholders and which aims to maximise benefits
for its customers
Worker cooperative a business organisation owned by its workers who
run the business and share the profits among thems
[Unit 19 Franchising]
Franchise the right given by one business to another to sell
goods or services using its name
Franchisee a business which agrees to manufacture,distribute or
provide a branded product
Franchisor the business which gives franchisees the right to sell
its product in return for…read more

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Internal or organic growth an increase in size of a business which is not
achieved through taking over other businesses but
through the existing business increasing profits,sales
and employment.
Merger when two or more businesses join together to form a
larger business.
Takeover when one business buys another business and takes
it over.
[Unit 23 Methods of organisation]
Centralisation a type of business organisation where decision are
made at the centre or core of the organization and
then passed down the chain of command.…read more

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Market oriented business a business which develops products which have
been researched and designed to meet the needs of
consumers.
Market research the process of gaining information about
customers,competitors and market trends through
collecting primary and secondary data.
Primary data information which has been gathered for a specific
purpose through direct investigation such as
observation,surveys and through experiment.
Product orientated business a business which develops products with little or no
market research and which hopes will prove
successful in the market.…read more

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Product life cycle the stages through which a product passes from its
development to being withdrawn from sale.
[Unit 29 Pricing]
Competition based pricing setting a price based on the prices charged by
competitors for similar products
Cost plus pricing fixing a price by adding a percentage profit margin to
the cost of production of the good or service.
Creaming or skimming selling a product at a high price,sacrificing high sales
in order to earn high profits.…read more

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Promotion communication between business and customer,
making the customer aware that the product is for
sale,telling or explaining to them what is the
product,making the customers aware of how the
product will serve the customer's needs and
persuading them to buy it for the first time or again.
Public relations promotion of a positive image about a product or
business through giving information about the
product to the general public,other businesses or to
the press.…read more

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