2.6 The Competitive Enviroment Flashcards
What is markets?
Markets exist where there are buyers and sellers.
What is competition?
Competition exists when more than one business is attempting to attract the same customers.
What is monopoly?
A monopoly exists when a business does not face any competition in a particular market.
What is market share?
Market share is the percentage of sales in a particular market recorded by a business.
What is uncertainty
An uncertainty occurs where there is a lack of information about a situation. This means the outcome or consequences are very difficult to predict.
What is a risk?
Risk is the possibility of something going wrong.
What is a business plan?
A business plan is a document setting out what a business does and what it hopes to achieve
in the future.
What is diversification?
Diversification occurs when a business starts
selling new products in new markets.
What is a recession?
A recession occurs when the value of an economy’s output of goods and services falls for six months or longer.
What is an entrepeneur?
An entrepreneur is someone who is willing to
take the risks involved in starting a new business
