QCAA Business key terms

Any arrangement where buyers and sellers interact to exchange goods or services, with price generally shaped by the interaction of demand and available supply.

The quantity of a good or service that consumers are willing and able to buy at each price level over a given period, all other things held constant.

The quantity of a good or service that producers are willing and able to offer for sale at each price level over a given period, assuming other influences stay unchanged.

The price and quantity at which the amount buyers wish to purchase exactly equals the amount sellers wish to provide, so there is no shortage or surplus.

A measure of how strongly the quantity demanded responds to a change in price, calculated as the percentage change in quantity divided by the percentage change in price.

Products that can replace one another for the same purpose, so that a price rise in one tends to increase demand for the other.

Products typically used together, such that stronger demand for one usually lifts demand for the other and a price rise in one can reduce sales of both.

The value of the next best alternative given up when a business or individual commits resources to one particular option or use.

The condition in which resources such as labour, capital and raw materials are limited relative to the competing wants of consumers and businesses, forcing choices.

A situation where gaining more of one benefit requires accepting less of another, so decision-makers must weigh competing advantages before choosing a course of action.

The sequence of stages a business commonly passes through, typically described as start-up, growth, maturity and decline or renewal, each with distinct challenges.

The underlying logic describing how a business creates value for customers, delivers that value, and captures enough revenue to cover costs and earn a return.

The specific bundle of benefits a business promises customers, explaining why they should choose its offering rather than those of competitors.

A distinct source from which a business earns income, such as direct product sales, subscriptions, advertising, licensing fees or service charges.

The mix and relative size of fixed and variable costs a business incurs in producing and selling its goods or services.

Expenses that do not change with the level of output in the short term, such as rent, insurance premiums and salaries of permanent administrative staff.

Expenses that rise or fall directly with the quantity produced or sold, for example raw materials, packaging and hourly production wages.

The level of sales at which total revenue exactly equals total costs, meaning the business makes neither a profit nor a loss.

Cost advantages that arise as output expands, because fixed costs are spread over more units and purchasing or production becomes more efficient.

Rising average costs that can occur when a business becomes too large, often due to coordination difficulties, communication breakdowns or reduced staff motivation.

The planning, coordination and control of the processes that transform inputs such as materials and labour into finished goods or delivered services.

The connected network of suppliers, producers, distributors and retailers that moves materials and products toward the final customer.

The set of practices a business uses to ensure goods or services consistently meet specified standards and customer expectations, including quality control and assurance.

A measure of output produced relative to inputs used, such as output per hour worked, indicating how efficiently resources are being converted into results.

Any attribute that allows a business to outperform rivals, such as lower costs, superior quality, strong branding, convenience or unique product features.

The proportion of total sales in a market held by one business, usually expressed as a percentage of industry revenue or unit volume.

An increase in a firm's size, output, revenue or market presence over time, achieved internally through expansion or externally through mergers and acquisitions.

The combination of two separate businesses into a single entity, typically to share resources, reduce costs or strengthen market position.

A transaction in which one business purchases a controlling interest in another, gaining ownership of its assets, operations and customer base.

A growth strategy in which a business enters new products or markets that differ from its existing operations, often to spread risk.

The process of identifying, assessing and responding to uncertainties that could affect a business, including avoiding, reducing, transferring or accepting them.

The process of choosing between alternatives by gathering information, weighing costs and benefits, and committing resources to a preferred course of action.

Any individual or group affected by, or able to affect, a business's activities and outcomes, including owners, employees, customers, suppliers, lenders and the community.

A person or institution that owns shares in a company, giving them a claim on profits and usually voting rights at general meetings.

A portion of a company's profit distributed to shareholders, commonly paid as a cash amount per share on a regular schedule.

A voluntary commitment by a business to act ethically and contribute positively to society and the environment beyond its minimum legal obligations.

Operating in a way that meets present needs without compromising the ability of future generations or the environment to meet their own needs.

A reporting approach that evaluates business performance across three dimensions: financial profit, social impact and environmental responsibility.

The surplus remaining when total revenue exceeds total costs over a period, representing a key measure of business viability and reward for owners.