2.1

Question 1

Innovation

Answer 1

Bringing a new idea to the market.

Question 2

Inorganic (external) growth

Answer 2

Growing by buying up other businesses or by merging with a business of roughly equal size.

Question 3

Merger

Answer 3

When two businesses of roughly equal size agree to come together to form one big business.

Question 4

Organic (internal) growth

Answer 4

Growth from within the business, such as creating and launching successful new products.

Question 5

Research and development (R&D)

Answer 5

The scientific research and technical development needed to come up with successful new products.

Question 6

Takeover

Answer 6

Obtaining control of another business by buying more than 50 per cent of its share capital.

Question 7

Flotation

Answer 7

Listing company shares on the stock market, allowing anyone to buy the shares. This means the price can float freely (up and down).

Question 8

Public limited company (plc)

Answer 8

A company with at least £50,000 of share capital that can advertise its shares to outsiders and is, therefore, allowed to float its shares on the stock market.

Question 9

Entering markets

Answer 9

When a company decides to open up in a market it hasn’t been in before.

Question 10

Exiting markets

Answer 10

Choosing to leave a market, probably because it was loss-making and looked set to continue.

Question 11

Competing internationally

Answer 11

Finding a way to succeed against rivals from overseas.

Question 12

Free trade

Answer 12

Trade between countries with no barriers, for example no tariffs.

Question 13

Globalisation

Answer 13

The increasing tendency for countries to trade with each other and to buy global goods.

Question 14

Imports

Answer 14

Goods or services bought from overseas.

Question 15

Tariffs

Answer 15

Taxes charged only on imports.

Question 16

Trade blocs

Answer 16

A group of countries that have agreed to have free trade within external tariff walls.

Question 17

Ethical considerations

Answer 17

Thinking about ethics, which may lead to morally valid decisions or may lead to the manipulation of customer attitudes.

Question 18

Ethics

Answer 18

Weighing up decisions or actions on the basis of morality, not personal gain.

Question 19

Fair trade

Answer 19

A social movement whose goal is to help producers in developing countries achieve better trading conditions and to promote sustainability.

Question 20

Trade-offs

Answer 20

How having more of one thing may force you to have less of another; for example, higher ethical standards may mean less profit.

Question 21

Environment

Answer 21

The condition of the natural world that surrounds us, which is damaged when there’s pollution

Question 22

Environmental considerations

Answer 22

Factors relating to ‘green’ issues, such as sustainability
and pollution.

Question 23

Sustainability

Answer 23

Whether or not a resource will inevitably run out in the future; a sustainable resource will not.