1.1 The Purpose And Nature Of Businesses

Question 1

Good

Answer 1

A physical product, such as a car

Question 2

Service

Answer 2

An intangible product, such as a bus journey

Question 3

Customer

Answer 3

Someone who buys a product from a business

Question 4

Consumer

Answer 4

Someone who uses goods and services produced by a business

Question 5

Entrepreneur

Answer 5

Someone who is willing to take the risks involved in starting a new business

Question 6

Entrepreneurship

Answer 6

Refers to the ability to be an entrepreneur- To take risks to develop a business idea

Question 7

Social Enterprise

Answer 7

A business that is set up to help society rather than make a profit, charity etc.

Question 8

Resources

Answer 8

Are the inputs that businesses use to provide their goods or services

Question 9

Enterprise

Answer 9

Essensially another word for business

Question 10

Interest

Answer 10

Is the money paid by banks as a reward to attract people to save with them

Question 11

Interest rate

Answer 11

Refers to the cost of borrowing money or the reward for saving money, expressed as a percentage

Question 12

Inflation

Answer 12

Refers to the rate of which prices are increased- money is ‘worth less’

Question 13

Gross Domestic Product (GDP)

Answer 13

Measures all the income earned by a country’s economy in a year