Business Studies Genral Key Words

Question 1

Business

Answer 1

A business is an organisation that provides goods or supplies a service

Question 2

A Customer

Answer 2

A customer is somone who buys a product

Question 3

A consumer

Answer 3

A consumer is somone who uses or goods or services produced by a business

Question 4

A good

Answer 4

A good is an physical product

Question 5

What is scarcity?

Answer 5

When there are not enough goods and services to meet the wants of the
population

Question 6

What are needs

Answer 6

Needs goods or services that are essential to living

Question 7

What are wants?

Answer 7

Wants good or services which people would like but not essential for living

Question 8

What are the three sectors in which business activity is broken down into? (Primary)

Answer 8

Primary industry concerned with using natural resources. They include
farming mining and oil drilling sometimes produce raw materials like iron ore
and oil

Question 9

What are the three sectors in which business activity is broken down into? (Secondary)

Answer 9

Secondary industry concerned with making and assembling products
manufacturers use raw materials and parts from other industries

Question 10

What are the three sectors in which business activity is broken down into? (Tertiary)

Answer 10

Tertiary sector give something of value to people but are not physical goods
like cinema or a lesson Other examples include banks keeping your money
safe public transport carrying people around etc

Question 11

What are the problems concerned with business growth?

Answer 11

• More difficult to control staff
• Lack of funds
• Lack of expertise
  Diseconomies of scale

Question 12

what is Internal growth?

Answer 12

(also
known as organic growth)
occurs when a business
gets bigger by selling
more of its products.

Question 13

What is External growth?

Answer 13

(also
known as inteqration)
occurs when a business
gets bigger by joining or
buying other businesses

Question 14

Stakeholder

Answer 14

A stakeholder is any person or entity that has an interest in a business or project

Question 15

Ecomerce

Question 16

Globalisation

Answer 16

Globalisation is the
trend for markets to
become worldwide in
scope.

Question 17

Intrest rates

Answer 17

Interest rates refer to
the cost of borrowing
money or the reward for

Question 18

Overdraft

Answer 18

overdraft is a flexible
loan which businesses
can use, whenever
necessary, up to an
agreed limit.

Question 19

Consumer spending

Answer 19

Consumer spending
refers to the value of
goods and services
bought by consumers
over a time period,
usually a month or a year.

Question 20

Income elastic

products

Answer 20

Income elastic
products are those
whose sales are sensitive
to changes in consumers
incomes.

Question 21

Economy

Answer 21

The economy is made up of millions of individual consumers, many thousands
of businesses and governments. All take decisions on what to buy and produce.

Question 22

economic climate

Answer 22

The economic climate describes the state of key factors within a country such
as the level of goods and services produced and the number of jobs available.

Question 23

Enviromental reporting

Answer 23

Environmental
reporting is the
publication of a
business's environmental
performance to the
general public.

Question 24

Pressure group

Answer 24

A pressure group is
a group of people with
a common interest
who influence public
opinion and decisions
by businesses and
governments.

Question 25

Environmental

responsibility

Answer 25

Environmental
responsibility refers to
the taking of decisions by
businesses, consumers,
governments and
other groups with the
intention of protecting the
environment.

Question 26

Sustainability

Answer 26

Sustainability refers to
methods of production
which can be continued
in the long term
without damage to the
environment.

Question 27

External costs

Answer 27

External costs of
production arise when
a business's activities
result in harmful effects
on other people not
directly involved in
production.

Question 28

Fair trade products

Answer 28

Fair trade products
are those for which
customers pay higher
prices and offer better
trading terms, such as
payments with orders.
The aim is to improve the
living standards of people
in poorer countries
where the products are
produced.

Question 29

Ethics

Answer 29

Ethics refers to whether
a business decision is
thought to be morally
right or wrong. An ethical
decision is made on the
basis of what is judged to
be morally right.

Question 30

Profit

Answer 30

Profit measures the
difference between the
values of a business
revenue (sales) and its
total costs.