2.1

Question 1

Define e-commerce

Answer 1

commercial transactions conducted electronically on the internet.

Question 2

Define ethics

Answer 2

moral principles that govern a person’s behaviour or the conducting of an activity.

Question 3

Environmental defined?

Answer 3

relating to the natural world and the impact of human activity on its condition.

Question 4

Define digital communication

Answer 4

the electronic exchange of information, data, or messages

Question 5

Definition of a trade off

Answer 5

exchange something of value, especially as part of a compromise

Question 6

Define global warming

Answer 6

the current rise in the average temperature of Earth’s air and oceans

Question 7

Define scarce resources

Answer 7

the demand for a good or service is greater than the availability of the good or service

Question 8

Define interest rates

Answer 8

the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding

Question 9

Define the economy

Answer 9

The economy is made up of millions of individual consumers, many thousands of businesses and governments. All take decisions on what to buy and produce.

Question 10

Define Consumers

Answer 10

Consumers are individuals who buy goods and services from businesses.

Question 11

Define the economic climate

Answer 11

The economic climate describes the state of key factors within a country such as the level of goods and services produced and the number of jobs available.

Question 12

Define interest rates

Answer 12

Interest rates refer to the cost of borrowing money or the reward for saving money, expressed as a percentage.

Question 13

Define Globalisation

Answer 13

Globalisation is the trend for markets to become worldwide in scope.

Question 14

Define Quality

Answer 14

Quality is the extent to which a consumer is sayisfied with a product.

Question 15

Define imports

Answer 15

Imports are goods and services purchased from overseas customers in the domestic market.

Question 16

Define Product Design

Answer 16

Product design translates the needs of customers, or the inventiveness of entrepreneurs, into a saleable product.

Question 17

Define Economies of scale

Answer 17

Economies of scale occurs when the cost of producing a single unit falls as output increases.

Question 18

Define inward investment

Answer 18

Inward investment occurs when governments, bussinesses and individuals invest capital into another country, for example, building new factories or buying companies.

Question 19

Define international trade

Answer 19

International trade id the selling of goods and services across national borders.

Question 20

Define Exports

Answer 20

Exports are goods and services produced by a business in one country and sold in another.

Question 21

Define a Multinational company (MNC)

Answer 21

A multinational company (MNC) produces goods and services in more than one country. They are also called transnational corporations (TNCs).

Question 22

What is markets?

Answer 22

Markets exist where there are buyers and sellers.

Question 23

What is competition?

Answer 23

Competition exists when more than one business is attempting to attract tye same customers.

Question 24

What is a monopoly?

Answer 24

A monopoly exists when a business does not face any competition in a particular market.

Question 25

What is a market share?

Answer 25

Market share is the percentage of sales in a particular market recorded by a business.

Question 26

What is uncertainty?

Answer 26

An uncertainty occurs when there is a lack of information about a situation. This means the outcome or consequences are very difficult to predict.

Question 27

What is risk?

Answer 27

Risk is the possibility of something going wrong.

Question 28

What is just-in-case production?

Answer 28

Holds stocks just in case there is a delay from supplies or a sudden unexpected increase in demand.

Question 29

What is purchasing economies of sale?

Answer 29

Occur when the cost per unit falls if large orders are placed with suppliers due to a bulk discount.

Question 30

What is procurement?

Answer 30

(or purchase) Involves selecting suppliers, establishing the terms of payment and negotiating the contract.

Question 31

What is the supply chain?

Answer 31

The supply chain refers to all the businesses, people and activities that take part in the production processes from the start until it gets to the customer.

Question 32

What is logistics?

Answer 32

Logistics refers to the movement of goods, services, information and money throughout the production process.