Castilla y León PAU Business and Business Model Design key terms

The process by which scarce resources such as land, labour, capital and entrepreneurship are combined to produce goods and services that satisfy human needs, generating income and employment in the process.

Any productive resource used to create goods or services. The classic classification distinguishes natural resources (land), labour, capital and entrepreneurship, each earning a different type of income: rent, wages, interest and profit.

The difference between the market value of a firm's output and the cost of the intermediate goods and services it purchased from other firms. Summing value added across sectors gives a country's gross domestic product.

Any individual or group affected by or interested in a firm's decisions, such as owners, employees, customers, suppliers, creditors, local communities and public administrations. Stakeholders may hold conflicting objectives, which management must balance.

A person or entity that owns shares in a company, giving them a residual claim on profits and assets plus voting rights in the general meeting. Shareholders are owners, distinct from other stakeholders such as workers or creditors.

A business owned and run by one natural person with no separate legal personality. The owner takes all profits but bears unlimited personal liability for business debts and files accounts as an individual.

A legal condition in which the owner's personal assets are not separated from business obligations, so creditors can claim against personal property to settle business debts. Typical of sole traders and general partnerships.

A legal protection meaning owners risk only the capital they have invested or pledged, not their personal assets, for company debts. It is the key advantage of capital companies such as the SL and SA.

A Spanish capital company whose capital is divided into participations and is fully subscribed and paid at incorporation, with a legal minimum of 3,000 euros. Liability is limited to capital contributed and shares are generally not freely transferable.

A Spanish capital company with share capital divided into freely transferable shares and a legal minimum of 60,000 euros, at least 25% paid at incorporation. It has separate legal personality and limited liability, and suits larger ventures raising public capital.

The public document, signed before a notary, that records the founding agreement of a company: name, object, capital, partners, governing bodies and bylaws. It must then be registered at the Commercial Registry to gain legal personality.

The internal rules of a company, included in the deed of incorporation, governing its name, registered office, corporate purpose, share capital, transfer of shares and the operation of governing bodies. They bind the company and all its members.

The official public register where companies file their deed of incorporation, annual accounts and other mandatory acts. Registration gives the company separate legal personality and makes key information publicly accessible to third parties.

A company owned and democratically controlled by its members, typically applying the principle one person, one vote rather than one share, one vote. Profits are distributed according to the cooperative's bylaws and member activity.

The plan a firm uses to gain and sustain an advantage over rivals in its market, for example through cost leadership, differentiation or focus. It defines how the firm will compete rather than merely what it intends to achieve.

A structured diagnosis that lists a firm's internal strengths and weaknesses together with external opportunities and threats. It is used to match internal capabilities to environmental conditions before choosing a strategy.

A tool for scanning the macro-environment through political, economic, social, technological, ecological and legal factors. It identifies forces outside the firm's control that may create opportunities or threats regardless of industry rivalry.

A framework assessing industry attractiveness through the threat of new entrants, the bargaining power of suppliers and buyers, the threat of substitutes and the intensity of rivalry. Stronger forces generally mean lower potential profitability.

A plan to increase a firm's size or market presence, often classified by Ansoff's matrix as market penetration, market development, product development or diversification. Growth may be internal, through reinvestment, or external, through mergers and acquisitions.

The process by which a firm expands its activity beyond its home market, through exporting, licensing, joint ventures, alliances or foreign direct investment. It offers new demand and scale but adds currency, legal and cultural risk.

The logic describing how an organisation creates, delivers and captures value. It explains what is offered to whom, through which channels and relationships, using which key resources and activities, at what cost and with what revenue.

A one-page visual template for designing and comparing business models across nine blocks: customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships and cost structure.

The bundle of benefits a product or service offers to solve a specific customer problem or satisfy a need. It explains why a segment should choose this offer rather than an alternative, including competitors or doing nothing.

A group of actual or potential buyers who share similar needs, behaviours or attributes and can be served profitably with a distinct offer. Segments define whom the business model is designed to serve.

The way a business converts its value proposition into money, such as one-off sale of goods, subscription fees, licensing, advertising or commissions. Each stream has its own pricing mechanism and contribution to total income.

The set of controllable commercial variables a firm combines to reach its target market, traditionally the four Ps: product, price, place and promotion. Services often extend this to people, processes and physical evidence.

The division of a heterogeneous market into smaller groups of buyers with similar characteristics or needs, using criteria such as demographics, geography, behaviour or benefits sought. Each resulting segment can be targeted with a tailored marketing mix.

The systematic collection and analysis of information about customers, competitors and the market to support commercial decisions. It may use primary data gathered directly through surveys or interviews, or secondary data already published.

The promotion of products and services through digital channels such as search engines, social media, email, websites and mobile apps. It allows fine targeting, measurable results and two-way interaction with customers.

The set of practices and systems a firm uses to attract, retain and develop profitable customer relationships by storing and analysing interaction data. It aims at loyalty and repeat purchase rather than single transactions.

The origins of funds available to a business, classified as internal (retained earnings, asset sales) or external (bank loans, equity, leasing, subsidies), and as short- or long-term according to repayment horizon and purpose.

Financing obtained from the firm's own resources, mainly retained earnings not distributed as dividends plus accumulated reserves and provisions. It avoids interest and dilution but is limited by the profit generated.

The sales volume at which total revenue equals total costs, so profit is zero. It is calculated by dividing fixed costs by the unit contribution margin, that is, price minus variable cost per unit.

The amount each unit sold contributes towards covering fixed costs and then generating profit, equal to selling price minus variable cost per unit. It is central to cost-volume-profit analysis and break-even calculation.

The formal arrangement of tasks, authority and reporting lines that coordinates work within a firm. Common types include functional, divisional, matrix and network structures, each trading specialisation against coordination.

The number of subordinates directly reporting to a single manager. A wide span produces a flatter hierarchy with fewer levels; a narrow span creates taller structures with closer supervision but slower communication.

The process of influencing and motivating people to work willingly towards shared goals. Styles range from autocratic to democratic and laissez-faire, and modern approaches emphasise transformational and situational leadership.

The internal drive that energises and directs behaviour towards a goal. Theories such as Maslow's hierarchy, Herzberg's two-factor model and expectancy theory explain what encourages effort and commitment at work.

Collaborative effort by a group of people with complementary skills who share objectives and mutual accountability. Effective teams require clear roles, trust, communication and conflict management to outperform individuals working alone.