1.5 keywords

Question 1

entrepreneur

Answer 1

A person who spots an opportunity and shows initiative and a willingness to take risks in order to benefit from the potential rewards.

Question 2

intrapreneur

Answer 2

Involves people within a business creating or discovering new business opportunities, which leads to the creation of new parts of the business or even a new business.

Question 3

sole trader

Answer 3

An individual who owns and runs their business. The business is unincorporated.

Question 4

partnership

Answer 4

A group or association of 2 or more people who agree to own and run a business together.

Question 5

private limited company LTD

Answer 5

A company in which a number of shareholders (not more than 50) contribute funds to the business in return for shares. Share can’t be sold on the stock exchange.

Question 6

public limited company

Answer 6

A company in which an unlimited number of shareholders contribute funds to the company in return for shares. Share can be sold on the stock exchange.

Question 7

franchise

Answer 7

A business/franchisor that sells the rights to the use of its name and trading methods to a franchisee.

Question 8

social enterprise

Answer 8

A business whose motives are not financial gains but to provide a service or benefit to society.

Question 9

shareholders

Answer 9

Investors who are part owners of a company. Their liability is limited to the amount they invest in.

Question 10

limited liability

Answer 10

Where the investors are only liable for the amount that they have invested, not the debts of the business.

Question 11

unlimited liability

Answer 11

Where the investors are liable for all the debts incurred by a business, risking the loss of their assets and possession.

Question 12

corporate objectives

Answer 12

The specific (SMART) targets that the business as a whole wants to achieve e.g. increase profits by 20% per year for the next three years.

Question 13

functional objectives

Answer 13

The specific objectives set for the individual functional areas of a business, designed to support the achievement of corporate objectives.

Question 14

opportunity cost

Answer 14

The cost of missing out on the next best alternative when making a decision.

Question 15

trade off

Answer 15

A decision between two choices arising from scarcity of resources, where having more of one thing potentially results in having less of another.