Key Words

Question 1

What is land?

Answer 1

The natural resources available for the enterprise, providers of this receive rent

Question 2

What is labour?

Answer 2

Human input into a production process

Question 3

What is capital?

Answer 3

Man made goods that are used for the production of other goods

Question 4

What is entrepreneurial spirit?

Answer 4

People who risk their own finances and make business decisions

Question 5

What is demand?

Answer 5

The amount of products consumers are willing to purchase at a given price

Question 6

What are wants?

Answer 6

Things that are not vital for survival, but make life easier or more pleasant

Question 7

What are needs?

Answer 7

Things vital for survival

Question 8

What is the developed world?

Answer 8

Where everyone is entitled to the basic needs in the developed world these are available to nearly everyone

Question 9

What is GDP?

Answer 9

Total value of goods and services produced by country every year

Question 10

What is the third world?

Answer 10

A place in the world where the five basic needs are rarely available

Question 11

What is disposable income?

Answer 11

Money to spend after taxes are paid

Question 12

What is a wholesaler?

Answer 12

Someone who provides a link between the producer and the retailer

Question 13

What is profit?

Answer 13

The selling price taken away from the cost of production

Question 14

What is the chain of production?

Answer 14

The stages from raw materials to the finished product

Question 15

Who are the consumers?

Answer 15

The people who buy the goods and services

Question 16

What are the five basic needs?

Answer 16

Water 
food 
shelter 
warmth 
clothes

Question 17

What is opportunity cost?

Answer 17

When we have to make a choice between two things because there is only enough money to do one of them, the one you don’t do you is the opportunity cost

Question 18

What is choice?

Answer 18

When resources can be allocated in various ways

Question 19

What is trade?

Answer 19

The exchange of goods and services for money

Question 20

What is barter?

Answer 20

Exchanging good for other goods without the use of money

Question 21

What is the customer?

Answer 21

A person who buys goods and services from a supplier

Question 22

What is demand

Answer 22

You amount of a product that will be bought at a specified price at a given time

Question 23

What are resources?

Answer 23

Everything that is needed to produce goods and services

Question 24

What is scarcity?

Answer 24

Is exist when the resources available are not sufficient to supply human wants

Question 25

What is the economy?

Answer 25

A system in a country that ensures the people survive

Question 26

What are the three main types of economy?

Answer 26

Planned economy mixed economy market economy

Question 27

What is planned economy

Answer 27

Things that are government owned and government run

Question 28

What is mixed economy

Answer 28

Some is government owned and some is owned by individuals

Question 29

What is market economy

Answer 29

Run by the people who make the decisions and own it

Question 30

What is a sole trader / proprietor?

Answer 30

A small business that is owned and financed by one person

Question 31

What is liability

Answer 31

Unlimited liability means they are responsible for their debts, they may have to sell private and personal possessions to pay this off

Question 32

What is tax?

Answer 32

A compulsory payment to the government taking from workers wages and businesses profit

Question 33

What is a partnership

Answer 33

A business that can have a minimum of two owners and a maximum of 20

Question 34

What is internal growth?

Answer 34

A business increases in size without joining with another business Growth is shown by a higher sales turnover and usually more profit

Question 35

What is external growth?

Answer 35

When businesses join together to form a larger business

Question 36

What is a merger?

Answer 36

When two or more businesses agree to join together to form a larger business Are usually similarly sized businesses

Question 37

What is a takeover?

Answer 37

When one business buys another business big businesses usually buy smaller businesses may be agreed and the business being bought is happy with the agreement may be contested where the business does not want to be bought out

Question 38

What is acquisition?

Answer 38

This usually means the business buys just part of another business

Question 39

What is a joint-venture?

Answer 39

When businesses join to sell a product together

Question 40

What is horizontal integration?

Answer 40

Went two businesses join together that make or sell the same products at the same stage of the chain of production

Question 41

What is vertical integration?

Answer 41

When one business joints with another somewhere in its chain of production

Question 42

What is recruitment?

Answer 42

The process by which a business hires staff

Question 43

What is induction?

Answer 43

The sessions given to new workers when they first start work

Question 44

What is a co-operative?

Answer 44

Businesses that have objectives other than making a profit. Usually aim to support the community, and encourage ethical business practices.

Question 45

What is a franchise?

Answer 45

An arrangement in which a well known businesses name is sold of to an individual or company who can then start trading under that name.

Question 46

What is the franchisor?

Answer 46

The business selling the right to trade it product or service

Question 47

What is the franchisee

Answer 47

The company / person buying the franchise