Business

Question 1

Business

Answer 1

A business is a organisation designed to supply a product or service

Question 2

Product

Answer 2

Anything that is capable of satisfying a customers needs

Question 3

Service

Answer 3

A service is an act that a business perdon carries out for you in exchsnge for money

Question 4

4 factord of production

Answer 4

Land-labour-capital-enterprise

Question 5

Primary sector

Answer 5

The primary sector extracts raw materials from the planet

Question 6

Secondary sector

Answer 6

In the secondary sector goods are from raw materials into finished goods

Question 7

Teritary sector

Answer 7

The teritary sector is all the support services for business

Question 8

Sole trader

Answer 8

a person who is the exclusive owner of a business, entitled to keep all profits after tax has been paid but liable for all losses

Question 9

Partnership

Answer 9

A business partnership is a legal agreement between two or more entities that determines shared ownership and operation of a business

Question 10

Primary limited company (LTD)

Answer 10

A private limited company is any type of business entity in “private” ownership used in many jurisdictions

Question 11

Companies House

Answer 11

Any limited company or partnership business has to register with Companies House. These records are public and there is usually a fee to register.

Question 12

Deed of partnership

Answer 12

A document that is signed by all of the owners of a business setting out the terms they must abide by and their obligations as owners.

Question 13

Dividens

Answer 13

A sum of money paid regularly by a company to its shareholders out of its profits.

Question 14

economies of scale

Answer 14

Where the average costs (of production, distribution and sales) fall as the business increases the amount of product that it produces, distributes and sells

Question 15

Grant

Answer 15

A grant is money given to a business, usually by the government or lottery fund, that does not need to be paid back.

Question 16

Hostile takeover

Answer 16

A takeover of one company (called the ‘target company’) by another (called the ‘acquirer’) that is accomplished without the agreement of the target company’s management. Instead, the acquirer approaches the company’s shareholders directly or fights to replace the management to get the takeover approved.

Question 17

Income tax

Answer 17

Tax that someone pays based on their personal income (the money that they earn).

Question 18

Limited liability

Answer 18

When the business owner or owners are only responsible for business debts up to the value of their financial investment in the business.

Question 19

Profits

Answer 19

The amount of money made after all costs are deducted

Question 20

Share capital

Answer 20

The money raised when a business becomes a public limited company by offering shares in the business in return for capital.

Question 21

Shareholders

Answer 21

A part owner of a private or public limited company.

Question 22

Shares

Answer 22

A percentage or portion of a company.

Question 23

stock market

Answer 23

A centralised market where business shares are traded.

Question 24

Unlimited liability

Answer 24

When the business owner or owners are personally responsible for all the debt of the business, no matter what the value.

Question 25

Ethics in business can be defined as ….

Answer 25

Moral principles

Question 26

Ways a bussines can become more ethical

Answer 26

-paying workers higher wages
-improved working conditions
-reducing pollution
-donations to the community
-reducing packaging

Question 27

Legislation

Answer 27

A set of rules that governs the way society operates

Question 28

National living rate

Answer 28

An hourly rate of pay that ie set by the government

Question 29

Markets

Answer 29

Markets exist where there are buyers and sellers

Question 30

Competition

Answer 30

Competition exists when mote than pne business is attempting to attract the same customers

Question 31

Monopoly

Answer 31

A monopoly exists wheh a business does not face any competition in a particular market

Question 32

Market share

Answer 32

Market share is the percentage of sales in a particular market recorded by a business