2.6 The Competitive Environment

Question 1

Markets

Answer 1

Exist where there are buyers and sellers

Question 2

Competition

Answer 2

Where more than one business is attempting to attract the same customers

Question 3

A monopoly

Answer 3

When a business does not face any competition in a particular market

Question 4

Market share

Answer 4

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

Question 5

An uncertainty

Answer 5

Where there is a lack of information about a situation

Question 6

Risk

Answer 6

The possibility of something going wrong

Question 7

A 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

When a business starts selling new products in a new market

Question 9

Recession

Answer 9

When the value of an economy’s output of goods and services falls for six months or longer

Question 10

Entrepreneur

Answer 10

Someone who is willing to take risks involved in starting a new business