Definitions

Question 1

Business

Answer 1

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

Question 2

Product

Answer 2

A product is anything that is capable of satisfying a customers need, it is a physical thing that you can touch.

Question 3

Service

Answer 3

A service is an act that a business person carries out for you in exchange for money

Question 4

4 factors 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 self-employed person who owns and runs their own business as an individual

Question 9

Partnership

Answer 9

A legal arrangement that allows two or more people to share a responsibillity for a business (2-20 people)

Question 10

LTD

Answer 10

A private type of corporation that limits the personal liability of the corporations shareholders

Question 11

PLC

Answer 11

A public company that is legally allowed to offer its shares for sale to the public

Question 12

Companies House

Answer 12

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 13

Deed Of Partnership

Answer 13

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 14

Dividents

Answer 14

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

Question 15

Economies of scale

Answer 15

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 16

Grant

Answer 16

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

Question 17

Hostile Takeover

Answer 17

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 18

Income Tax

Answer 18

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

Question 19

Limited Liability

Answer 19

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

Question 20

Profits

Answer 20

The amount of money made after all costs are deducted.

Question 21

Share Capital

Answer 21

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

Question 22

Shareholders

Answer 22

A part owner of a private or public limited company.

Question 23

Shares

Answer 23

A percentage or portion of a company.

Question 24

Stock Market

Answer 24

A centralised market where business shares are traded.

Question 25

Unlimited Liability

Answer 25

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

Question 26

Survival

Answer 26

Keeping a business operating for a certain amount of time

Question 27

Make profit

Answer 27

Making a profit is essential for a business that desires to expand it operations

Question 28

Maximise profit

Answer 28

A process buisiness firms undergo to ensure the best output and price levels are achived

Question 29

Maintain sales

Answer 29

Change product slightly and adapt in order to increase demand

Question 30

Increase Market share

Answer 30

Higher market share can help improve sales when existing, brand loyal customers buy more of a companys product

Question 31

Value of shares

Answer 31

Share value is calculated based on the demand for the companys stock

Question 32

Growth

Answer 32

Owners and managers may want the business to open more stores (domestically or internationally)

Question 33

Customer satisfaction

Answer 33

Defined as a measurment that determines how happy customers are with a companys product

Question 34

Ethical

Answer 34

Fix ethical problems that can arise in business enviromemt

Question 35

Stakeholders

Answer 35

A person with an intrest or concern in a business

Question 36

Business planning

Answer 36

A business plan states what a business is trying to achieve over the next few years and how it intends to accomplish these aims

Question 37

Tariff

Answer 37

A tariff is a tax on foreign goods imported into a country

Question 38

R E C I P F.

Answer 38

Raw materials
Employment
Competitors
Infrastructure
Proximity
Finance

Question 39

Ethics

Answer 39

Moral principles that govern business behavior or the conducting of an activity

Question 40

Ways a business could become more ethical

Answer 40

-Paying wokers higher wages
-Improve working conditions
-Reduce pollution
-Buying fairtrade supplies
-Reduce packaging

Question 41

What is a market

Answer 41

A market exists where there are buyers and sellers. Buyers and sellers come together to exchange goods and services and to set prices for goods and services.

Question 42

What is competition

Answer 42

Competition exists when more than one business is attempting to attract the same customers.

Question 43

What is a monopoly

Answer 43

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

Question 44

What is market share

Answer 44

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