1.1 What is a business

Question 1

change

Answer 1

An act or process through which something becomes different.

Question 2

ethics

Answer 2

The moral principles that govern the behaviour of a person or group.

Question 3

Sustainability

Answer 3

Meeting the needs of the present without compromising the ability of future generations to meet their own needs.

Question 4

Stakeholders

Answer 4

Any individual or group that affects, or is affected by, an organization.

Question 5

Resilience

Answer 5

The ability to withstand and adapt to a disruption.

Question 6

System

Answer 6

a set of interconnected parts that work together to make a more complex whole to achieve a purpose.

Question 7

Entrepreneurs

Answer 7

A person who organises human, physical and financial resources to start a business.

Question 8

Inputs

Answer 8

The human, physical and financial resources needed to create a product.

Question 9

Physical resources

Answer 9

The raw materials and semi-finished goods that a business needs to begin production.

Question 10

Capital goods

Answer 10

The physical equipment and machines that are used to produce other goods.

Question 11

Financial resources

Answer 11

The funds needed to set up and invest in a business and keep it running; can be short-term, medium-term and long-term.

Question 12

Long term finances

Answer 12

Large-scale funds needed to finance expensive equipment and facilities that a business needs to operate.

Question 13

Short term financing

Answer 13

Small-scale funds needed to pay for inputs that will soon be processed and sold by the business; used to cover short-term working capital needs.

Question 14

Stock

Answer 14

The inventory held by a business to sell to customers.

Question 15

Inventory

Answer 15

The raw materials used in production, as well as the goods produced that are available for sale.

Question 16

Human Resources

Answer 16

The people needed to run the business.

Question 17

Enterprise

Answer 17

the process of taking risks to combine the other resources to create a good or service.

Question 18

Outputs

Answer 18

What a business produces; can be physical products, services, solutions or waste.

Question 19

Goods

Answer 19

The products of a business that are tangible, meaning they have physical characteristics and can be measured.

Question 20

Services

Answer 20

The products of a business that are intangible, meaning that they do not have physical characteristics; can be a service or a solution.

Question 21

Feedback

Answer 21

Process by which the output of a system becomes an input to the same system.

Question 22

Negative feedback

Answer 22

When the output feeds back into the inputs in a way that moves the system in the opposite direction.

Question 23

Positive feedback

Answer 23

Occurs when the output feeds back into the inputs in a way that moves systems and processes in the same direction.

Question 24

Revenue

Answer 24

The income that a business generates.

Question 25

Economy

Answer 25

A system for producing and provisioning or distributing goods and services among a group of people.

Question 26

Households

Answer 26

important care services are provided between people with strong relationships. These goods and services are produced mainly with unpaid work

Question 27

State

Answer 27

provides fundamental goods and services that everyone can access. These goods and services are provided often at no or a low price. They are funded mainly through taxes;

Question 28

Commons

Answer 28

provides shared goods and services produced by society, or provides resources from Nature. People use and distribute goods, services and resources through self-organised systems. There is no payment;

Question 29

Markets

Answer 29

provides goods and services produced by businesses. Businesses produce and sell goods and services in exchange for money, for a price.

Question 30

Sector

Answer 30

An area of the economy

Question 31

Primary sector

Answer 31

A section of an economy that extracts materials (minerals, oil, etc.) or harvests products from the Earth.

Question 32

Secondary sector

Answer 32

The area of economic activity that produces finished goods through manufacturing and processing

Question 33

Tertiary sector

Answer 33

The area of economic activity that provides services.

Question 34

Quaternary sector

Answer 34

The area of economic activity involved with knowledge and the movement of information

Question 35

Supply chain

Answer 35

The steps involved in creating finished goods

Question 36

Integrated business

Answer 36

A business whose activities span two or more sectors

Question 37

Outsourced

Answer 37

When a business takes an internal function and has it performed externally by another person or business.

Question 38

Doughnut economics model

Answer 38

A model that outlines the social foundation (human needs) and ecological ceiling (planetary boundaries) that economic activity needs to respect to find the ‘safe and just space for humanity’.

Question 39

Planetary boundaries/ ecological ceiling

Answer 39

The limits of planetary systems; the outer ring of the Doughnut Economics model.

Question 40

Intrapreneur

Answer 40

A person who develops new ideas, processes or products for a business in which they already work.

Question 41

Narrative bias

Answer 41

A mental shortcut that people can use to create stories that make sense of the world; people are often attracted to narratives.

Question 42

Secondary research

Answer 42

Research that involves using evidence (about a market) gathered by others.

Question 43

Primary research

Answer 43

Research (in a market) that involves creating new information that is gathered through surveys, interviews, observations, focus groups, camera studies or other methods

Question 44

Value

Answer 44

All the benefits that a business creates for the stakeholders involved.

Question 45

Market orientation

Answer 45

A situation where the sole focus of a business is on the needs and wants of a market segment.

Question 46

Product orientation

Answer 46

A situation where a business prioritises research and development of high quality, specialised products, rather than prioritising market research.

Question 47

SWOT

Answer 47

business management tool that analyses the internal strengths and weaknesses as well as the external opportunities and threats for a business.