GCSE AQA Business Key Terms
Good - ANS- A tangible product e.g car
Service - ANS- An intangible act e.g financial advice
Consumer - ANS- Someone uses goods and services produced by a business
Customer - ANS- Someone who buys a product from a business
Entrepreneur - ANS- Someone who is willing to take the risks involved in starting a new
business
Social enterprise - ANS- A business that is set up to help society rather than to make a
profit
Interest - ANS- The money paid by a bank as reward to encourage people to save with
them
GDP - ANS- Measures all the income earned in a country's economy in a yea
Public sector organisations - ANS- Businesses owned by the government
Private sector organisations - ANS- Businesses owned by individuals
Unlimited liability - ANS- The owner is personally and fully responsible for all debts of
the business( their house, car, personal savings may be repossessed if debts cannot be
paided)
Profit - ANS- Measures the difference between the value of a business revenue and it's
total costs
Stakeholder - ANS- Individuals and organisations to affected by, and affect, the activities
of a business
Company - ANS- A business that has its own legal identity. It can own items, own
money, sue and be sued
Partnership - ANS- Occurs when two or more people join together in a business
enterprise to pursue profit
, Deed of Partnership - ANS- Legal agreement between partners that sets out the rules of
the partnership, such as how profits will be divided and how the partnership will be
valued if someone wants to leave
Shareholder - ANS- Is a person or organisation that owns part of
a company. Each shareholder owns a 'share' of the business
Aim - ANS- A general goal of a business
Growth - ANS- When a business sells increased quantities of its products
Sole trader - ANS- Someone who set up in business on his/her own
Not-for-profit organisation - ANS- Organisation set up to achieve objectives other than
profit; e.g, a charity
Stock Exchange - ANS- A market for buying and selling shares of public limited
companies, large numbers of shares are being bought and sold all the same time
Flotation - ANS- The process of a company 'going public'. When a private limited
company (ltd) becomes a public limited company (plc) and has its shares listed on the
Stock Exchange.
Dividends - ANS- The financial rewards paid out to shareholders each year
Negotiation - ANS- Discussion aimed at reaching an agreement
Market share - ANS- Percentage of sales in a particular market recorded by a business
Objective - ANS- A specific target that is set for business to achieve
Markets - ANS- Bring buyers and sellers together to exchange goods and services
Ethics - ANS- Whether a business decision is for it to be morally right or wrong; And
ethical decision is made on the basis of what judged to be morally right
Interest rates - ANS- The cost of borrowing money, or the reward for saving money.
Expressed as a percentage
Limited liability - ANS- The amount of debt the owners have to pay back
Negotiation - ANS- A discussion between two parties e.g. employees negotiating better
pay
Good - ANS- A tangible product e.g car
Service - ANS- An intangible act e.g financial advice
Consumer - ANS- Someone uses goods and services produced by a business
Customer - ANS- Someone who buys a product from a business
Entrepreneur - ANS- Someone who is willing to take the risks involved in starting a new
business
Social enterprise - ANS- A business that is set up to help society rather than to make a
profit
Interest - ANS- The money paid by a bank as reward to encourage people to save with
them
GDP - ANS- Measures all the income earned in a country's economy in a yea
Public sector organisations - ANS- Businesses owned by the government
Private sector organisations - ANS- Businesses owned by individuals
Unlimited liability - ANS- The owner is personally and fully responsible for all debts of
the business( their house, car, personal savings may be repossessed if debts cannot be
paided)
Profit - ANS- Measures the difference between the value of a business revenue and it's
total costs
Stakeholder - ANS- Individuals and organisations to affected by, and affect, the activities
of a business
Company - ANS- A business that has its own legal identity. It can own items, own
money, sue and be sued
Partnership - ANS- Occurs when two or more people join together in a business
enterprise to pursue profit
, Deed of Partnership - ANS- Legal agreement between partners that sets out the rules of
the partnership, such as how profits will be divided and how the partnership will be
valued if someone wants to leave
Shareholder - ANS- Is a person or organisation that owns part of
a company. Each shareholder owns a 'share' of the business
Aim - ANS- A general goal of a business
Growth - ANS- When a business sells increased quantities of its products
Sole trader - ANS- Someone who set up in business on his/her own
Not-for-profit organisation - ANS- Organisation set up to achieve objectives other than
profit; e.g, a charity
Stock Exchange - ANS- A market for buying and selling shares of public limited
companies, large numbers of shares are being bought and sold all the same time
Flotation - ANS- The process of a company 'going public'. When a private limited
company (ltd) becomes a public limited company (plc) and has its shares listed on the
Stock Exchange.
Dividends - ANS- The financial rewards paid out to shareholders each year
Negotiation - ANS- Discussion aimed at reaching an agreement
Market share - ANS- Percentage of sales in a particular market recorded by a business
Objective - ANS- A specific target that is set for business to achieve
Markets - ANS- Bring buyers and sellers together to exchange goods and services
Ethics - ANS- Whether a business decision is for it to be morally right or wrong; And
ethical decision is made on the basis of what judged to be morally right
Interest rates - ANS- The cost of borrowing money, or the reward for saving money.
Expressed as a percentage
Limited liability - ANS- The amount of debt the owners have to pay back
Negotiation - ANS- A discussion between two parties e.g. employees negotiating better
pay
