1 Enterprise

Question 1

Entrepreneur

Answer 1

An individual who has the idea for a new business starts it up and carries most of the risk but benefits from the reward.

Question 2

Customer

Answer 2

An individual consumer or organisation that purchases goods or services from a business.

Question 3

Consumer

Answer 3

An individual who purchases goods and services for personal use.

Question 4

Consumer goods

Answer 4

The physical and tangible goods sold to consumers are not intended for resale.

Question 5

Factors of production

Answer 5

The resources needed by businesses to produce goods or services.

Question 6

Capital goods

Answer 6

The physical goods used by industry to aid the production of other goods and services such as machines and commercial vehicles.

Question 7

Enterprise

Answer 7

The action of showing initiative to take the risk to set up a business.

Question 8

Adding value

Answer 8

Increasing the difference between the cost of bough-in inputs (materials) and the selling price of the finished goods.

Question 9

Added value

Answer 9

The difference between the cost of purchasing bough-in inputs (materials) and the selling price of the finished goods.

Question 10

Branding

Answer 10

The process of differentiating a product by developing a symbol, name, image, or trademark for it.

Question 11

Opportunity cost

Answer 11

The next most desired option that is given up.

Question 12

Intrapreneur

Answer 12

A business employee who takes direct responsibility for turning an idea into a profitable new product or business venture.

Question 13

Business plan

Answer 13

A written document that describes a business, its objectives, its strategies, the market it is in and the financial forecasts.