1.1.1 - 1.1.3

Question 1

Positive statements

Answer 1

Objective statements that can be tested

Question 2

Normative statements

Answer 2

Subject statements that carry value judgements

Question 3

Scarce resources

Answer 3

Resources that are limited

Question 4

Opportunity cost

Answer 4

The next best alternative forgone

Question 5

Trade-off

Answer 5

Having more of something results in having less of something else

Question 6

Profit

Answer 6

Money left over when cost is taken away from revenue

Question 7

Entrepreneurs

Answer 7

People who choose to start up their own business

Question 8

Sales maximisation

Answer 8

Lowering manufacturing costs/increasing sales prices

Question 9

Satisficing

Answer 9

Keeping the shareholders happy

Question 10

Survival

Answer 10

Staying in business by just about making enough money

Question 11

Market share

Answer 11

How much of the market the firm owns

Eg. Pepsi has a large market share

Question 12

Return on investment

Answer 12

The ratio between net profit and cost of the investment

Question 13

Cost efficiency

Answer 13

Saving money by doing something in an improved way

Question 14

Social objectives

Answer 14

A statement that underlies desired social outcomes

Question 15

Employee welfare

Answer 15

Anything done to improve the employees environment

Question 16

Customer satisfaction

Answer 16

A measure of a product/company that meets/surpasses customer expectations

Question 17

Economic agents

Answer 17

All groups and organisations involved in economic activity and take decisions on how resources should be used

Question 18

Stakeholders

Answer 18

Groups/individuals that are affected by and/or have an interest in the operations and objectives of the business

Question 19

Shareholders

Answer 19

Can affect/be affected by the organisation’s actions, objectives and policies

Question 20

Suppliers

Answer 20

A party that supplies goods or services

Question 21

Creditors

Answer 21

An entity that extends credit by giving another entity permission to borrow money that is intended to be repaid in the future

Question 22

Corporate Social Responsibility

CSR

Answer 22

When a business integrates social/environmental concerns into their business operations on a voluntary basis

Question 23

Tax evasion

Answer 23

Unlawful attempt to minimise tax liability through fraudulent techniques

Question 24

Transnational Corporations

TNCs

Answer 24

A company that owns or had a controlling interest in a subsidiary enterprise in one or more countries other than where the parent company is registered
Eg. Primark

Question 25

Multinational Corporations

MNCs

Answer 25

Usually a large corporation in one country which produces or sells goods or services in various countries
Eg. Coca Cola

Question 26

Zero-hours contract

Answer 26

The employer is not obliged to provide any minimum working hours and the worker is not obliged to accept any work offered