BEE

Question 1

Business Plan

Answer 1

A business plan is a document that provides detailed information on the activities a business is undertaking

Question 2

Business Organisation

Answer 2

A business organisation is an enterprise set up by entrepreneurs to produce/ trade in goods and services

Question 3

Deed of Partnership

Answer 3

The deed of partnership is an agreement that outlines the terms and conditions of a partnership business

Question 4

Risk

Answer 4

Risk is the possibility of making loss than profit

Question 5

Sole trading business

Answer 5

Sole trading business owned and controlled by one entrepreneur only

Question 6

Partnership

Answer 6

Partnership consists of 2 or more people that collectively own and manage a business to make profit

Question 7

Unlimited Liability

Answer 7

Unlimited liability is a situation where in case of bankruptcy, the owner’s personal belongings may be used to clear off the debts of a business

Question 8

Batch Production

Answer 8

Batch production is when an enterprise manufactures products stage by stage in batches

Question 9

Capital Intensive Production Process

Answer 9

Capital Intensive Production Process is when an enterprise uses more capital than labour in the production process

Question 10

Flow Production

Answer 10

Flow production is when firms continuously produce standardised output in great quantities

Question 11

Inputs

Answer 11

Inputs are the factors of production or resources

Question 12

Job Production

Answer 12

Job production is when enterprises produce one unit of output at a time, according the taste and preference of their customer

Question 13

Labour Intensive Production Process

Answer 13

Labour Intensive Production Process is when enterprises use more labour than capital in the production process

Question 14

Output

Answer 14

Output refers to goods and services produced

Question 15

Production

Answer 15

Production is the process using resources to manufacture goods or provide services

Question 16

Production Process

Answer 16

Production Process refers to the steps involved in transforming factor inputs into outputs

Question 17

Large Scale Production

Answer 17

Large Scale Production refers to mass production within large enterprises

Question 18

Small Scale Production

Answer 18

Small Scale Production refers to production made within a small enterprise

Question 19

Sustainable production

Answer 19

Sustainable production is the process of producing output using processes and technology that protect the environment

Question 20

Technology

Answer 20

Technology refers to the methods and tools used to facilitate a process

Question 21

Bank loan

Answer 21

Bank loan is money given by a bank over a given period of time against interest

Question 22

Capital Expenditure

Answer 22

Capital Expenditure is money spent on items which will last for a long period of time

Question 23

External Source of Finance

Answer 23

External Source of Finance are funds generated from outside the busi.

Question 24

Funds

Answer 24

Funds refers to money used to set up busi.s and pay for their expenses

Question 25

Interest

Answer 25

Interest is the sum of money paid on the amount borrowed

Question 26

Internal Source of Finance

Answer 26

Internal Source of Finance are funds generated from within the business

Question 27

Long term loan

Answer 27

Long term loan is a loan which is granted over a period of more than 3 years

Question 28

Revenue Expenditure

Answer 28

Revenue Expenditure is money spent on the day-to-day expenses of an enterprise

Question 29

Savings

Answer 29

Savings refers to money kept aside for future use

Question 30

Security

Answer 30

Security is a guarantee provided by the borrower to the bank that the loan will be repaid

Question 31

Short term loan

Answer 31

Short term loan is a loan that has to be repaid in less than a year

Question 32

Start-up capital

Answer 32

Start-up capital refers to the amount of money an entrepreneur needs to set up an enterprise

Question 33

Bank loan

Answer 33

Bank loan is money given by a bank over a given POT against interest

Question 34

Bank Overdraft

Answer 34

Bank Overdraft is a credit facility that allows entrepreneurs to borrow up to an agreed amount of money

Question 35

Government Support

Answer 35

Government Support means any assistance or help given to busi.

Question 36

Grant

Answer 36

Grant is a sum of money provided by the government that needs not to be repaid

Question 37

National Minimum Wage

Answer 37

National Minimum Wage is the lowest amount of money an employer can legally pay to their employees

Question 38

Regulations

Answer 38

Regulations are rules of order having the force of law

Question 39

Rule

Answer 39

A rule is a general norm that guides conduct or behaviour

Question 40

Small and Medium Enterprises (SMEs)

Answer 40

Small and Medium Enterprises (SMEs) are independent businesses that operate on a small scale

Question 41

Trade Finance

Answer 41

Trade Finance is flexible, short term borrowing facility, linked to specific export or import transactions

Question 42

Cash flow

Answer 42

Cash Flow is the movement of cash within a business

Question 43

Cash flow cycle

Answer 43

Cash flow cycle shows the use of cash in production until it comes back to the EP from the sale of commodities

Question 44

Cash Flow Forecast

Answer 44

Cash Flow Forecast is an estimate of future cash inflows and outflows over a given POT

Question 45

Cash inflow

Answer 45

Cash inflow is the SOM going in a business over a given POT

Question 46

Cash Outflow

Answer 46

Cash Outflow is the SOM going out of a business over a given POT

Question 47

Liquidity

Answer 47

Liquidity is the availability of cash within an EP to pay for its business transactions

Question 48

Net Cash Flow

Answer 48

Net Cash Flow is the difference between total cash inflow and total cash outflow over a given POT