Profit

Question 0

What is a business?

Answer 0

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

Question 1

What is a profit?

Answer 1

When the income earned (revenue) is greater than the costs of production (expenses)

Question 2

What is finished goods?

Answer 2

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

Question 3

What are the main activities of a business?

Answer 3

Management, organising natural, distributing goods, planning finances, forecasting sales, controlling production, marketing products, and production

Question 4

What is a multinational corporation?

Answer 4

Multinational corporation is a company that has branches in many different countries.

Question 5

What is an objective?

Answer 5

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

Question 6

What is the return on investment?

Answer 6

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 7

What is an economy?

Answer 7

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

Question 8

What is economic growth?

Answer 8

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

Question 9

What is the business environment?

Answer 9

The business environment refers to the surrounding conditions in which the business operates. It can be divided into two broad categories: internal ans external

Question 10

Internal environment

Answer 10

Internal environment includes those factors over which the business has some degree of control.

Question 11

External environment

Answer 11

External environment includes those factors over which the business has little control. It may be further divided into two categories: operating and macro.

Question 12

Corporate culture

Answer 12

Set of mostly unwritten or informal rules that spell out how people are to behave most of the time

Question 13

Policy

Answer 13

A policy is a general guide to help employees deal with recurring situations

Question 14

Operating environment

Answer 14

This refers to the specific outside stakeholders with whom the business interacts in conducting the business.

Question 15

Stakeholder

Answer 15

A stakeholder is any group or individual who has an interest in, or is affected by, the activities of a business.

Question 16

Suppliers

Answer 16

A businesses suppliers are those organisations and individuals that supply the resources that the business needs to conduct its operations.

Question 17

Competition

Answer 17

Competition is a rivalry among business that seek to satisfy a market

Question 18

Competitors

Answer 18

Competitors are businesses that offer rival products or services.

Question 19

What is a sustainable competitive advantage?

Answer 19

A sustainable competitive advantage is the ability of a business to develop strategies that ensure it has an ‘edge’ over its competitors.

Question 20

Interest groups

Answer 20

Interest groups are groups of people who attempt to directly influence or persuade an organisation to adopt particular policies.

Question 21

What is the macro environment?

Answer 21

The macro environment is made up of the broad conditions and trends in the economy and society within which a business operates.

Question 22

Free trade

Answer 22

Free trade should take off without any restrictions such as tariffs

Question 23

What is a tariff?

Answer 23

A tariff is a tax imposed on imported goods, usually to protect locally produced suppliers of similar items.

Question 24

Stakeholders

Answer 24

Are individuals or groups with an interest in the success of the business