2.6 The Competitive Environment

Question 1

Competition

Answer 1

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

Question 2

Monopoly

Answer 2

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

Question 3

Market share

Answer 3

Is the percentage of sales in a particular market recorded by a business

Question 4

Uncertity

Answer 4

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

Question 5

Risk

Answer 5

Is the possibility of something going wrong

Question 6

Business plan

Answer 6

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

Question 7

Diversification

Answer 7

Occurs when a business starts selling new products in new markets

Question 8

Recession

Answer 8

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

Question 9

Entrepenuer

Answer 9

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