unit 1 definitions

Question 1

production

Answer 1

a process which involves converting goods to services

Question 2

services

Answer 2

where tasks are carried out for customers

Question 3

manufacturing

Answer 3

the use of raw materials to create physical goods

Question 4

mass produced

Answer 4

goods that are produced in bulk

Question 5

consumers

Answer 5

people who buy goods and services for personal use

Question 6

consumer goods

Answer 6

goods produced for other people

Question 7

intermediate goods

Answer 7

goods produced for other companies

Question 8

capital goods

Answer 8

goods produced to make other goods

Question 9

direct services

Answer 9

services directed towards consumers

Question 10

commercial services

Answer 10

services used to help other businesses with distributing goods

Question 11

trade

Answer 11

the exchange of goods and services for money

Question 12

aids to trade

Answer 12

services provided to businesses

Question 13

indirect services

Answer 13

services provided by commercial enterprises to support businesses while trading

Question 14

working capital/circulatory capital

Answer 14

stocks of raw materials that will be used up in production/ finished goods

Question 15

fixed capital

Answer 15

stuff that will help convert working capital to goods and services

Question 16

land

Answer 16

natural resources

Question 17

labour

Answer 17

the workforce of the economy

Question 18

enterprise

Answer 18

entrepreneurs are people who own a business, come up with the business idea, take risk of setting up a business and are responsible for organising resources

Question 19

productivity

Answer 19

the amount of goods produced per net time

Question 20

globalisation

Answer 20

the spread of technology, trade, information and jobs across different countries

Question 21

intermediary/middleman

Answer 21

person that acts like a link between buyers and sellers- like a wholesaler

Question 22

tariff

Answer 22

tax paid on goods that are imported

Question 23

protectionism

Answer 23

measures taken by the gov to reduce imports and stuff like dumping

Question 24

lead time

Answer 24

time between placing an order and receiving it

Question 25

outsourcing

Answer 25

to arrange someone outside the business to do work for the business

Question 26

value added tax (VAT)

Answer 26

sales tax imposed on every stage of production. can vary from country to country (currently is sri lanka is 18%)

Question 27

sales tax

Answer 27

tax paid by consumers when buying a good or service (usually a small percentage of the transaction)

Question 28

sole trader

Answer 28

business owned by one person (hint: sole=1)

Question 29

unlimited liability

Answer 29

owner is personally responsible for all debts, even beyond what is payable by him/her

Question 30

coorporative

Answer 30

business owned and controlled by people who use its supplies

Question 31

public sector

Answer 31

government orgs that provide goods and services in the economy

Question 32

private sector

Answer 32

private orgs owned by individuals that provide goods and services in the economy

Question 33

unincorporated business

Answer 33

businesses with no legal difference between the owner and the business

Question 34

incorporated business/limited company

Answer 34

businesses where there is a legal difference between the business and its owner.

Question 35

annual general meeting (AGM)

Answer 35

an annual meeting for cooperative company's shareholders

Question 36

dividend

Answer 36

the amount of money paid to shareholders from profits

Question 37

partnership

Answer 37

a business owned by between 2 to 20 people

Question 38

deed of partnership

Answer 38

an official document stating the terms and conditions in a partnership

Question 39

limited partnership/sleeping partner

Answer 39

where some partners aren't involved in the business but give capital (the partner doing this is called a sleeping partner [usually has limited liability])

Question 40

limited liability

Answer 40

when a business goes in debt, the partner can only pay what he invested beforehand

Question 41

sue/to sue

Answer 41

to make a legal claim against someone because they/their product have hurt you in some way

Question 42

chairperson

Answer 42

someone who is in charge of a meeting and administrates the work of an organisation

Question 43

certificate of incorporation

Answer 43

the document needed for an incorporated company before they can start trading.

Question 44

franchise

Answer 44

a business model where a well-established company gives the license to a new company to operate under it's name

Question 45

privatisation

Answer 45

the transfer of a public sector company to the private sector

Question 46

productivity

Answer 46

the amount of goods and services produced per net time

Question 47

distribution channel

Answer 47

the route taken by a product from a producer to the consumer

Question 48

bulk breaking

Answer 48

buying a large amount of goods and selling them in small quantities

Question 49

point of sale

Answer 49

any point where a consumer buys a product

Question 50

impulse buying

Answer 50

where shoppers make an unplanned purchase

Question 51

footfall

Answer 51

the number of people walking by an area

Question 52

brownfield sites

Answer 52

areas of land that were once used for urban development

Question 53

greenfield sites

Answer 53

areas of land where businesses develop for the first time

Question 54

brand

Answer 54

a type of product manufactured by a particular company under a particular name

Question 55

touchpoint

Answer 55

a point where business and customers interact

Question 56

retained profit

Answer 56

profit kept by the business for future use (in case of emergency)

Question 57

wholesaling

Answer 57

selling goods to retailers rather than customers

Question 58

current balance

Answer 58

the difference between a nation's exports and imports of goods and services

Question 59

current account deficit

Answer 59

when imports > exports

Question 60

current account surplus

Answer 60

when exports > imports

Question 61

balance of payments

Answer 61

a record of all transactions relating to international trade

Question 62

trading blocs

Answer 62

a group of countries, usually in the same region that join together and enjoy trade between them free of all trade barriers

Question 63

trade barriers

Answer 63

measures designed to restrict trade

Question 64

quota

Answer 64

a restriction placed by the government on the quantity of imported goods allowed in country

Question 65

multinational company/corporation

Answer 65

a large business with significant production or service operations in more than one country