VCE Business Management key terms

An organised effort by one or more people to produce or supply goods and services that satisfy customer needs, usually with the aim of earning revenue or achieving a stated mission.

Physical, tangible items that a business makes and sells, such as furniture or food, which customers can see, touch, store and own after purchase.

Intangible actions performed for a customer, such as hairdressing or banking, which cannot be stored or owned and are consumed as they are delivered.

Any individual or group with an interest in a business and affected by its decisions, including owners, employees, customers, suppliers, lenders and the local community.

A person or institution that owns shares in a company, giving them a claim on profits through dividends and a vote at general meetings.

A business owned and operated by one person, who keeps all profits but bears unlimited personal liability for the debts and legal obligations of the business.

A business owned by two or more people who share capital, profits and decision-making under an agreement, and who generally carry unlimited liability for business debts.

A separate legal entity registered with a corporate regulator, owned by shareholders and run by directors, which can own assets and be sued in its own name.

A protection for owners of a company meaning they can lose only the money they invested, not their personal assets, if the business cannot pay its debts.

A situation where business owners are personally responsible for all business debts, so personal assets such as a home may be sold to repay creditors.

A portion of a company's profit paid to shareholders, usually as an amount per share, as a reward for the capital they have invested.

A short written declaration of a business's core purpose and reason for existing, used to guide decisions and communicate direction to stakeholders.

A statement describing the future state or long-term aspiration a business wants to achieve, intended to inspire and focus employees and other stakeholders.

A specific, measurable goal a business sets to guide its activities over a period, such as increasing market share, profit or customer satisfaction.

A business's voluntary commitment to act ethically and consider social, environmental and community impacts alongside profit when making decisions.

The process of coordinating people, resources and tasks to achieve business objectives efficiently and effectively through planning, organising, leading and controlling.

The ability to influence, motivate and guide employees towards achieving business objectives, often through communication, modelling behaviour and building trust.

A style where the manager makes decisions alone and instructs employees what to do, offering little consultation or input from staff.

A style where managers involve employees in decision-making and seek their ideas, aiming to increase commitment, morale and the quality of decisions.

The way a business arranges roles, authority and reporting lines, showing who is responsible for what and how information flows between levels.

The number of employees who report directly to a single manager, which affects how closely staff can be supervised and how much delegation is possible.

The formal line of authority in a business, showing who reports to whom and the route through which instructions and decisions pass.

The internal or external forces that drive an employee to work with effort and commitment towards achieving business goals.

The systems a business uses to set employee goals, monitor progress, provide feedback and evaluate results, linking individual effort to business objectives.

The structured process of preparing, supporting and guiding employees and systems through a business change so that disruption is minimised and objectives are still met.

Employee or stakeholder opposition to a proposed change, often caused by fear of job loss, uncertainty, habit or disruption to established routines.

The business function responsible for transforming inputs such as materials, labour and information into finished goods or delivered services that meet customer needs.

The resources a business uses in operations, including raw materials, components, labour, capital, information and energy, which are processed into outputs.

The finished goods or delivered services that result from an operations process and are supplied to customers or further users.

A measure of how much output is produced from a given amount of input, showing how efficiently a business converts resources into goods or services.

The practices a business uses to ensure goods and services consistently meet agreed standards and customer expectations, reducing waste and defects.

An approach that aims to minimise waste in operations, including excess stock, waiting time and defects, while still delivering value to customers.

The stock of raw materials, work in progress and finished goods held by a business, which must be managed to balance availability against storage costs.

The network of suppliers, producers, distributors and retailers that work together to move a product or service from raw materials to the final customer.

A measurable value used to track how well a business or area is performing against an objective, such as sales growth, defect rates or customer satisfaction scores.

Operating in a way that meets present needs without compromising the ability of future generations to meet theirs, considering economic, social and environmental impacts.

The growing interconnection of national economies through trade, investment, technology and communication, which opens markets and increases competition for businesses.

A significant, often long-term change to a business's strategy, structure, processes or technology that alters how it operates and competes.

The introduction of new or improved products, services, processes or business models that create value for customers and help the business stay competitive.