Understanding Business

Question 1

Legal document laying out terms of business for limited companies

Answer 1

Articles of association

Question 2

Short-term, temporary loan

Answer 2

Bank overdraft

Question 3

Group appointed to run charity or voluntary organisations

Answer 3

Board of trustees

Question 4

Group session to produce ideas quickly when are then discussed in detail to determine feasiblity

Answer 4

Brainstorming

Question 5

West minister/Scottish parliament providing national services

Answer 5

Central government

Question 6

Set up to provide for a good cause, often run by trustees with volunteer help, regulated by the government

Answer 6

Charity

Question 7

Effective of competition (domestic or foreign) on the way the business operates

Answer 7

Competitive factor

Question 8

Main commercial activity of a business

Answer 8

Core activities

Question 9

Identification and satisfaction of consumer needs, only for more needs to be created

Answer 9

Cycle of business

Question 10

The transfer of responsibilities from a manager to a subordinate

Answer 10

Delegation

Question 11

Tend to be situated in city centre, upmarket image,branded goods, variety of departments

FOR EXAMPLE - Debenhams

Answer 11

Department store

Question 12

Tend to stock large quantities of limited range of products at discount prices

FOR EXAMPLE- Primark

Answer 12

Discount store

Question 13

Goods which can be used again and again

FOR EXAMPLE- washing machines, Tv etc

Answer 13

Durable goods

Question 14

Conditions in the general economy which may affect a business

FOR EXAMPLE- interest rates , exchange rates etc

Answer 14

Economic factors

Question 15

Show how efficiently and effectively the organisation is performing

Answer 15

Efficiency

Question 16

The idea and the ability to use land, labour and capital to achieve it

Answer 16

Enterprise

Question 17

Person who has the idea and takes the risk in combining the factors of production

Answer 17

Entrepreneur

Question 18

Factors outwith the control of the organisation which may impact on decisions

PESTEC - economical, social, technological, environmental, competition

Answer 18

External factors

Question 19

Land, labour, capital and enterprise required for the production goods and services

Answer 19

Factors of production

Question 20

Business operated under the name of a parent business

FOR EXAMPLE- McDonald’s, the body shop

Answer 20

Franchise

Question 21

The owner of a franchise who effectively rents the name to trade under from the franchiser

Answer 21

Franchisee

Question 22

Items produced by manufacturers

Answer 22

Goods

Question 23

Bodies set up and funded by the government

Answer 23

Government- funded service providers

Question 24

Government source of finance : not repaid but usually strings attached and not for full amount required

Answer 24

Grant

Question 25

Expanding the scale of operations/ increasing market share

Answer 25

Growth

Question 26

Deposit paid for equipment and the balance paid up over a period of time

Answer 26

Hire purchase

Question 27

Tends to be small business, only one or two stores

Answer 27

Independent store

Question 28

Factors within the organisation which may restrict ability to use best solution (Staff resistance, finances, technology)

Answer 28

Internal factors

Question 29

Growth by expanding the existing business IE- new branches, more staff etc (organic growth)

Answer 29

Internal growth

Question 30

The mental and physical effort of the employees in the organisation

Answer 30

Labour

Question 31

The natural resources used in production - all things grown on and extracted from land, sea etc

Answer 31

Land

Question 32

Where owners are only liable for the amount they invested in the business

Answer 32

Limited liability

Question 33

Local government bodies/local councils

Answer 33

Local authority

Question 34

Aims of managers for the organisation as a whole FOR EXAMPLE- growth

Answer 34

Managerial objectives

Question 35

Legal document required for setting up a limited company

Answer 35

Memorandum of association

Question 36

Written summary of the objectives of the company : communicated to staff, customers wtc

Answer 36

Mission statement

Question 37

Business which operates in more than one country

Answer 37

Multinational

Question 38

Goods used only once and then have to be replaced FOR EXAMPLE- food, drink etc

Answer 38

Non-durable goods

Question 39

Aims (goals) set by organisations

Answer 39

Objective

Question 40

A firm which owns all shares in another firm

Answer 40

Parent companies

Question 41

Business owned by 2-20 people who own and control the business and share the profits

Answer 41

Partnership

Question 42

Analysis of the external environment in which the organisation operates

Answer 42

Pestic analysis

Question 43

Public limited company -shares available for purchase by public on the stock exchange

Answer 43

Plc

Question 44

Government decisions affecting business FOR EXAMPLE- new laws, government policy etc

Answer 44

Political factor

Question 45

Information gathered directly by an organisation for it’s own purposes (questionnaire, interview)

Answer 45

Primary information

Question 46

Industry based on the exploitation of natural resources FOR EXAMPLE- farming, mining, fishing etc

Answer 46

Primary sector

Question 47

Organisation specialising in giving advice, training & grants to young people starting up in business

Answer 47

Princes youth trust

Question 48

Company with limited liability whose shared are traded privately

Answer 48

Private limited company

Question 49

Organisations owned by private individuals with the main aim of making a profit

Answer 49

Private sector

Question 50

Objective to make as much profit as possible

Answer 50

Profit maximisation

Question 51

Owned by central government, run by board appointed by government FOR EXAMPLE - BBC

Answer 51

Public corporation

Question 52

Owned by the government on behalf of the people

Answer 52

Public sector organisation

Question 53

Business support organisation: seminars, networking etc

Answer 53

Scottish chamber of commerce

Question 54

Governemnt funded organisation set up to provide help and advice for business start-ups

Answer 54

Scottish enterprise

Question 55

Information gathered for one purpose and re-sued for another purpose (magazine, internet)

Answer 55

Secondary information

Question 56

Organisations primarily involved in the manufacture of finished goods

Answer 56

Secondary sector

Question 57

Things done for consumers for a price FOR EXAMPLE- banking, hairdressing

Answer 57

Services

Question 58

Private individuals who own a part ( a share) in a limited company

Answer 58

Shareholder

Question 59

Responsibility towards society as a whole- local community, environment ,workers etc

Answer 59

Social & ethical responsibility

Question 60

Demographic (population) changes or changes in lifestyle/attidude which affects business

Answer 60

social factor

Question 61

One person business where the owner takes all the profits and makes all the decisions

Answer 61

Sole trader

Question 62

Person,organisation or group that is affected by/has an interest in the success of an organisation

Answer 62

Stakeholder

Question 63

Large, self-service store selling food, household goods

Answer 63

Supermarket

Question 64

Able to continue to operate in the business environment

Answer 64

Survival

Question 65

Advances in technology which affect business

Answer 65

Technological factor

Question 66

Sector of industry providing services to consumers FOR EXAMPLE- retailing, financial services etc

Answer 66

Tertiary sector

Question 67

Fluctuations in the economy boom,slump, recession etc

Answer 67

Trade cycle

Question 68

Finance provided for more ‘risky’ investment in return for share of company

Answer 68

Venture capital

Question 69

Multi-media facility enabling a ‘virtual’ meeting of participants in different geographical locations

Answer 69

Video-conferencing

Question 70

Organisations not owned by government or individuals FOR EXAMPLE- charities

Question 71

The process whereby the activity of organisations creates wealth for the whole economy

Answer 71

Wealth creation