3.1 What is business?

Question 1

Budgets

Answer 1

an agreed ceiling on the monthly spending by any department or manager

Question 2

Corporate Objectives

Answer 2

targets for the whole business, such as profits to rise by 20 per cent a year for the next three years

Question 3

Delegated

Answer 3

having passed authority down the hierarchy so that the local or more expert person makes the decision

Question 4

Entrepreneurs

Answer 4

a person with the initiative and drive to make a business idea happen

Question 5

Mission

Answer 5

a business aim expressed to make it seem especially purposeful and motivating

Question 6

Mission Statement

Answer 6

a short, powerfully expressed sentence or two that explains that the business aims clearly yet motivationally

Question 7

Objectives

Answer 7

target precise enough to allow praise or blame for the person in charge

Question 8

Strategy

Answer 8

a medium long term plan for meeting your objectives

Question 9

Bankrupt

Answer 9

when an individual is unable to meet personal liabilities, some or all of which can be as a consequence of business activities

Question 10

Creditors

Answer 10

those owned money by a business, for example, suppliers and bankers

Question 11

Incorporation

Answer 11

establishing a business as a separate legal entity from its owners, and therefore giving the owner limited liability

Question 12

Monopoly

Answer 12

where the sales of one business have a dominant share of its marketplace

Question 13

Sole Trader

Answer 13

a one person business with unlimited liability

Question 14

Unlimited Liability

Answer 14

owners are liable for any debts incurred by the business, even if it requires them to sell all their assets and possessions and become personally bankrupt