2.6 - The Competitive Enviroment

Question 1

Markets

Answer 1

Markets exist where
there are buyers and
sellers.

Question 2

Competition

Answer 2

Competition exists when
more than one business
is attemptinq to attract
the same customers.

Question 3

monopoly

Answer 3

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

Question 4

Market share

Answer 4

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

Question 5

Uncertainty

Answer 5

An uncertainty
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

Risk is the possibility of
something going wrong.

Question 7

business plan

Answer 7

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

Question 8

Diversification

Answer 8

Diversification occurs
when a business starts
selling new products in
new markets.

Question 9

A recession

Answer 9

A recession occurs
when the value of an
economy’s output of
goods and services falls
for six months or longer.

Question 10

An entrepreneur

Answer 10

An entrepreneur is
someone who is willing to
take the risks involved in
starting a new business.