DU Business Studies Unit (Ga Unit) key terms

The sum of external factors-economic, social, political, legal, technological, and competitive-that influence how a business operates and makes decisions, often beyond its direct control.

The process of identifying opportunities, mobilizing resources, and taking calculated risks to create and grow a new business venture, often introducing innovation or improved ways of doing things.

A planning tool that examines a firm's internal Strengths and Weaknesses alongside external Opportunities and Threats to inform strategy and decision-making.

A framework for scanning the macro-environment by categorizing influences as Political, Economic, Social, Technological, Legal, and Environmental, helping firms anticipate change and manage risk.

A written document that outlines a venture's objectives, target market, operational strategy, financial forecasts, and funding needs, used to guide execution and attract investors or lenders.

A newly established business, often small and seeking a scalable model, that operates under uncertainty and typically requires external funding to grow.

The process of planning, organizing, leading, and controlling resources-people, money, materials, and information-to achieve stated organizational goals efficiently and effectively.

The number of subordinates who report directly to a single manager or supervisor; a narrow span creates taller hierarchies, while a wide span creates flatter structures.

The assignment of authority and responsibility by a manager to a subordinate for specific tasks, while the manager retains overall accountability for results.

The formal arrangement of roles, reporting lines, and coordination mechanisms that determines how tasks are divided, grouped, and linked within an organization.

The set of controllable tactical elements-commonly product, price, place, and promotion-that a firm blends to elicit the desired response from its target market.

The process of dividing a heterogeneous market into smaller, more homogeneous groups of buyers with similar needs or characteristics, so that tailored offerings and messages can be developed.

The specific group of consumers or organizations that a business chooses to serve with its products or services, selected after evaluating segment attractiveness and fit with company objectives.

The added value a brand name gives to a product beyond its functional benefits, reflected in customer loyalty, perceived quality, and willingness to pay a premium.

A visual model showing the stages a prospect passes through-from awareness to interest, evaluation, purchase, and loyalty-with fewer prospects remaining at each successive stage.

A strategy and set of tools for managing interactions with current and potential customers, aiming to improve satisfaction, retention, and long-term profitability through organized data and communication.

The systematic recording, classifying, summarizing, and reporting of financial transactions to provide information for decision-making by owners, managers, investors, and other stakeholders.

A method that records every transaction with equal debits and credits in at least two accounts, ensuring the accounting equation remains balanced and errors are easier to detect.

A financial statement that reports a firm's assets, liabilities, and owners' equity at a specific point in time, showing what the business owns, owes, and what belongs to the owners.

A financial statement that summarizes revenues, expenses, and resulting profit or loss over a period, showing how the business performed in its operations.

The difference between net sales revenue and the direct cost of goods sold, indicating how much money remains to cover operating expenses after accounting for production or purchase costs.

The funds available for day-to-day operations, calculated as current assets minus current liabilities, indicating a firm's short-term liquidity and ability to meet obligations.

A list of all ledger account balances at a given date, used to check that total debits equal total credits before preparing financial statements.

The quantity of a good or service that consumers are willing and able to buy at various prices during a given period, other factors held constant.

The quantity of a good or service that producers are willing and able to offer for sale at various prices during a given period, assuming other influences remain unchanged.

The market price at which the quantity demanded by buyers equals the quantity supplied by sellers, so there is no tendency for the price to change.

A measure of how responsive the quantity demanded is to a change in price, income, or the price of a related good; high elasticity means buyers react strongly.

The level of sales at which total revenue equals total costs, so the business makes neither profit nor loss; it marks the minimum volume needed to avoid a loss.

An expense that remains constant in total regardless of the level of output or sales in the short run, such as rent or insurance premiums.

An expense that changes in direct proportion to the level of output or sales, such as raw materials or direct labor, rising as production increases.

The exchange of information, ideas, and instructions within and between organizations, using formal or informal channels, to coordinate work and support decision-making.

An officially designated route for messages within an organization, such as a chain of command or a written memo, ensuring accountability and consistent information flow.

The response a receiver gives to a sender's message, confirming understanding or indicating misunderstanding, and enabling the sender to adjust future communication.

The function responsible for recruiting, developing, motivating, and retaining employees, and for ensuring compliance with employment laws and alignment with organizational strategy.

The process of identifying, attracting, and selecting qualified candidates to fill vacant positions, using internal or external methods to build a capable workforce.

The negotiation process between employer representatives and employee representatives, such as trade unions, to determine wages, working conditions, and other terms of employment.

An organization of workers formed to protect and advance members' interests, typically through collective bargaining, representation, and sometimes industrial action.

A disagreement between employers and employees or their representatives over terms and conditions of employment, which may lead to work stoppages such as strikes or lockouts.

A legally enforceable agreement between two or more parties that creates rights and obligations, requiring offer, acceptance, consideration, capacity, and lawful purpose.

Something of value exchanged between parties to a contract, such as money, goods, or a promise, which makes the agreement legally binding.

Failure by a party to perform a contractual obligation without lawful excuse, entitling the injured party to remedies such as damages or specific performance.

Laws and policies designed to safeguard buyers of goods and services from unfair trade practices, defective products, misleading advertising, and unsafe goods.