This is an all-in-one summary key terms and definitions of the new CAIE A-Level business syllabus. The key terms are written in the order of chapters, which is suitable for revising before an exam. If you have any questions, please feel free to contact me.
Business objectives: measurable targets set by the business such as sales or profits that have to be
achieved in a given time period.
Primary sector: the first stage of production and includes extracting or growing resources.
Entrepreneurs: individuals who take risk to create or start new business or project.
Enterprise: skill needed to make a new idea work.
1.2 Business Structure
Unlimited liability: an individual or group of individuals personally responsible for all the actions of their
businesses.
Limited liability: investors can lose the money they have invested into the business but their personal
possessions are safe.
Company: a business organization which has its own legal identity and limited liability.
Shareholder: an investor in and one of the owners of a company
Dividends: money that is paid out of profits to the shareholders, a reward to the owners of the business.
Franchise: occurs when a franchisor sells the rights to use or sell his or her products to a franchisee.
Cooperatives: owned and run by and for members.
1.3 Business Size
Niche: small segment of a market.
Mission statement: sets out the overall purpose of a business.
1.4 Business Objectives
Objective: a target that is measurable and has a given timescale.
Strategy: the long-term plan to achieve the objective of a business.
Tactics: the short-term actions needed to implement the strategy.
, Budget: a financial plan.
Ethical behaviour: behaviour that is thought to be morally correct, and not necessarily the most
profitable.
1.5 Stakeholder in a Business
Stakeholders: groups or individuals who have an interest in a business.
Accountability: the extent to which the individual or a group is held responsible for a decision or a
policy.
Social responsibility: a philosophy under which businesses consider the interests of all groups in society
as a central part of their decision making.
2.1 Management and Leadership
Authority: the power or ability to carry through a task or action.
Leadership: the function of ruling, guiding and inspiring other people within an organization in pursuit of
agreed objectives.
Management: planning, organizing, directing and controlling all or part of a business enterprise.
Delegation: passing authority down the organizational hierarchy. This is only genuine if the manager
relinquishes some control to the subordinate.
Piece-rate pay: a system that an employee’s wage is determined by the quantity of products produced.
Business culture: the attitudes, values and beliefs that normally exist within an organization.
Communication: the exchange of information or ideas between two or more parties.
Emotional intelligence: the capacity for recognizing our own feelings and those of others, for motivating
ourselves, and for managing emotions well in ourselves and in our relationships.
2.2 Motivation
Motivation: describes the factors that arouse, maintain and channel behaviour towards a goal.
Labour productivity: measures the output per time period of an employee.
Labour turnover: the percentage of a workforce that leaves its employment with a business over some
period of time, normally one year.
Absenteeism: describes a situation in which an employee is absent from work without a good reason.
Human needs: elements required for survival and normal mental and physical health.
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