2.6

Question 1

Markets

Answer 1

Exists where there are buyers and sellers

Question 2

Competition

Answer 2

Exists when more than one business is attempting to attract the same customers

Question 3

Monopoly

Answer 3

Exists when a business does not face any competition in a particular market

Question 4

Market share

Answer 4

The percentahe of sales in a particular market recorded by a business

Question 5

Uncertainty

Answer 5

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

Question 6

Risk

Answer 6

The possibility of something going wrong

Question 7

Business plan

Answer 7

A document setting out what a business does and what it hopes to achieve in the future

Question 8

Diversification

Answer 8

This occurs when a business starts selling new products in new markets

Question 9

Recession

Answer 9

This occurs when the value of an economies output of goods and services falls for six months or longer

Question 10

Entreprenuer

Answer 10

This is someone who is willing to take the risks involved in starting a new business