Chapter 1- Introducing Business

Question 1

profit

Answer 1

A business makes a profit when the income earned (revenue) is greater than the costs of production (expenses).

Question 2

business

Answer 2

A business is an organisation that provides goods and/or services to consumers in order to make a profit.

Question 3

Market share

Answer 3

Market share refers to the business’s share of the total industry sales for a particular product.

Question 4

multinational corporation

Answer 4

A multinational corporation (sometimes referred to as a transnational corporation) is a company that has branches in many different countries.

Question 5

Finished goods

Answer 5

Finished goods are those that are ready for customers to buy and use.

Question 6

objective

Answer 6

An objective states what an organisation expects to achieve over a set period.

Question 7

return on investment

Answer 7

The return on investment is a positive or negative percentage that relates the money gained or lost on an investment to the cost of that investment. It is usually taken to mean that the return on the investment occurs over a 12-month period.

Question 8

economy

Answer 8

An economy is a system set up to determine what to produce, how to produce and to whom production will be distributed.

Question 9

Economic growth

Answer 9

Economic growth occurs when the real value of goods and services increases over a set period of time.