AQA GCSE Business - Paper 1 Key Terms
Aim - ANS- The intention to reach a goal.
Business plan - ANS- A detailed statement of how the business intends to operate, either
at start-up or during a given period of time.
Competition - ANS- The rivalry between businesses looking to sell their goods/services
in the same market.
Cost - ANS- The money spent by a business on goods and services.
Customer - ANS- Individuals, businesses or organisations that purchase goods/services
and make decisions about which supplier to choose.
Customer satisfaction - ANS- Whether customers are pleased with the goods/services
they receive; whether they would purchase again.
Demand - ANS- The quantity of a particular product that will be bought at particular price
over a specific time.
Directors - ANS- The people who are elected by the shareholders to run the business on
their behalf.
Diseconomies of scale - ANS- When a business grows too large, leading to a possible
increase in unit cost.
Dividend - ANS- A portion of the after-tax profit that is paid to shareholders according to
the number of shares they own.
E-commerce - ANS- Business transactions carried out electronically on the internet.
Economies of scale - ANS- The cost advantage of producing on a large scale. As output
increases the unit cost decreases.
Employees - ANS- Individuals who work full time or part time for the business; they have
a contract of employment detailing their duties and rights.
Enterprise - ANS- The ability to identify business ideas and opportunities to bring them
to fruition and to take risks where appropriate.
, Entrepreneur - ANS- A person who has the vision to use initiative to make business
ideas happen, managing the resources and risks.
Ethical objectives - ANS- A business' goals that relate to fair business practice or moral
guidelines and make a positive contribution to the business' reputation.
Ethics - ANS- The moral principles that guide how a business operates.
Expansion - ANS- The process of increasing a business' size.
Export - ANS- Good/service sold to a customer in another country.
External growth - ANS- The growth of a business by joining with another by merger or
takeover.
Factors of production - ANS- The elements that combine in the production process:
land, labour, capital and enterprise.
Fixed costs - ANS- The costs that stay largely the same, regardless of the business'
output.
Franchising - ANS- The sale of the rights to use/sell a product by a franchisor to a
franchisee.
Gap in the market - ANS- An opportunity for a new business (or expansion) which may
meet a need that is not being met.
Goods - ANS- Items that are produced from raw materials for sale to businesses or
consumers.
Growth - ANS- A business' increase in size. Methods include: asset value, employees,
market share, markets, profits and sales.
Import - ANS- Good/service bought from a supplier in another country.
Integration - ANS- Two or more businesses join together.
Limited liability - ANS- The owners are not responsible for the debts of the business. The
limit of their liability for the business' debts is the amount they invested.
Local community - ANS- The individuals, other businesses and organisations that are
located close to the business. The business interacts with these groups.
Aim - ANS- The intention to reach a goal.
Business plan - ANS- A detailed statement of how the business intends to operate, either
at start-up or during a given period of time.
Competition - ANS- The rivalry between businesses looking to sell their goods/services
in the same market.
Cost - ANS- The money spent by a business on goods and services.
Customer - ANS- Individuals, businesses or organisations that purchase goods/services
and make decisions about which supplier to choose.
Customer satisfaction - ANS- Whether customers are pleased with the goods/services
they receive; whether they would purchase again.
Demand - ANS- The quantity of a particular product that will be bought at particular price
over a specific time.
Directors - ANS- The people who are elected by the shareholders to run the business on
their behalf.
Diseconomies of scale - ANS- When a business grows too large, leading to a possible
increase in unit cost.
Dividend - ANS- A portion of the after-tax profit that is paid to shareholders according to
the number of shares they own.
E-commerce - ANS- Business transactions carried out electronically on the internet.
Economies of scale - ANS- The cost advantage of producing on a large scale. As output
increases the unit cost decreases.
Employees - ANS- Individuals who work full time or part time for the business; they have
a contract of employment detailing their duties and rights.
Enterprise - ANS- The ability to identify business ideas and opportunities to bring them
to fruition and to take risks where appropriate.
, Entrepreneur - ANS- A person who has the vision to use initiative to make business
ideas happen, managing the resources and risks.
Ethical objectives - ANS- A business' goals that relate to fair business practice or moral
guidelines and make a positive contribution to the business' reputation.
Ethics - ANS- The moral principles that guide how a business operates.
Expansion - ANS- The process of increasing a business' size.
Export - ANS- Good/service sold to a customer in another country.
External growth - ANS- The growth of a business by joining with another by merger or
takeover.
Factors of production - ANS- The elements that combine in the production process:
land, labour, capital and enterprise.
Fixed costs - ANS- The costs that stay largely the same, regardless of the business'
output.
Franchising - ANS- The sale of the rights to use/sell a product by a franchisor to a
franchisee.
Gap in the market - ANS- An opportunity for a new business (or expansion) which may
meet a need that is not being met.
Goods - ANS- Items that are produced from raw materials for sale to businesses or
consumers.
Growth - ANS- A business' increase in size. Methods include: asset value, employees,
market share, markets, profits and sales.
Import - ANS- Good/service bought from a supplier in another country.
Integration - ANS- Two or more businesses join together.
Limited liability - ANS- The owners are not responsible for the debts of the business. The
limit of their liability for the business' debts is the amount they invested.
Local community - ANS- The individuals, other businesses and organisations that are
located close to the business. The business interacts with these groups.
