Business activty

Question 1

A need

Answer 1

A good or service essential for living

Question 2

A want

Answer 2

A good or service that people would like to have but is not essential for living `

Question 3

Economic problem

Answer 3

Unlimited wants but limited resources

Question 4

Scarcity

Answer 4

Lack of resources to meat the demand

Question 5

Opportunity cost

Answer 5

The next best item given up by choosing another

Question 6

Factors of production

Answer 6

Resources needed to produce goods and services

• land
• enterprise
• labor
• capital

Question 7

Business

Answer 7

An organization that combines factors of production to satisfy peoples’ needs and wants

Question 8

Specialization

Answer 8

People and business focus on what they are best at

Question 9

Division of labor

Answer 9

Production is split into seperate tasks and each worker specializes in one task

Question 10

Added value

Answer 10

The difference between selling price and cost of materials

Question 11

Primary sector

Answer 11

Businesses that extract and use natural resources to produce raw materials

Question 12

Secondary sector

Answer 12

Businesses that manufacture goods using raw materials from the primary sector

Question 13

Tertiary sector

Answer 13

Businesses that provided services to consumers and other firms

Question 14

Deindustrialization

Answer 14

The decline in the importance of the secondary manufacturing industry

Question 15

Mixed economy

Answer 15

Has both public and private sector

Question 16

Public sector

Answer 16

Businesses owned by the government

Question 17

Private sector

Answer 17

Businesses owned by people, not by government

Question 18

Privatization

Answer 18

The sale of a business in the public sector to the private sector

Question 19

Entrepreneur

Answer 19

Some one who organizes, operates, and takes the risk of a new business venture

Question 20

Business plan

Answer 20

The objectives and details of operations, finance, and owners of a new business

Question 21

Capital employed

Answer 21

The total value of capital used in a business

Question 22

Internal growth

Answer 22

The business expands its existing operations

Question 23

External growth

Answer 23

The business expands by merging with or taking over another business

Question 24

Takeover

Answer 24

A business buys out the owners of another business

Question 25

Merger

Answer 25

The owners of two businesses agree to join their business together to form one

Question 26

Horizontal integration

Answer 26

A business integrates with another business in the same industry and level of production

Question 27

Vertical integration (backwards and forwards)

Answer 27

A business integrates with another business in the same industry but on a different level of production

Question 28

Conglomerate integration (diversification)

Answer 28

A business integrates with another in a different industry

Question 29

Sole trader

Answer 29

The business is owned by one person

Question 30

Partnership

Answer 30

The business is jointly owned by two or more people

Question 31

Limited liability

Answer 31

The liability of owners and shareholder is limited to the amount invested, personal possessions are not at risk

Question 32

Incorperted business

Answer 32

A business with a seperate idenity from its owners

Question 33

Private limited company

Answer 33

A business owned by shareholders but it can not sell shares to the public

Question 34

Public limtted company

Answer 34

A business owned by shareholder but it can sell shares which are tradable on the stock exchange.

Question 35

Shareholders

Answer 35

The owners of a limited company

Question 36

Dividends

Answer 36

The payments which must be made to share holders from the profits of a company

Question 37

Franchise

Answer 37

A business that licenses its brand name, logo, trading methods and brand image and sells it to franchises

Question 38

Joint Venture

Answer 38

Two or more people start a new product together sharing capital, profits and risks

Question 39

Public corperation

Answer 39

A business in the public sector that is owned and controlled by the government

Question 40

Business objectives

Answer 40

The aims or targets that a business works towards

Question 41

Profit

Answer 41

Revenue-costs

Question 42

Market share

Answer 42

The percentage of market sales held by a brand (sales by business/total sales in market) x 100

Question 43

Social enterprise

Answer 43

An organization with profit, environmental and social objectives

Question 44

Stakeholder

Answer 44

A person with direct interest in the performance of a business