2.6 The Competitive Evironment Flashcards
Types of market
Good markets
Factor markets
Labour markets
Markets meaning
Markets exist where are buyers and sellers
Competition meaning
Competition exists when more than one business is attempting to attract the same customers
Monopoly meaning
A monopoly exists when a business does not face any competition in a particular market
Market share
Market share is the percentage of sales in a particular market recorded by a business
Uncertainty meaning
An uncertainty occurs where there is a lack of information about a situation. This means the outcome or consequence are very difficult to predict
Risk meaning
Risk is the possibility of something going wrong
Business plan meaning
A business plan is a document setting out what a business does and what it hopes to acheive in the future
Diversification meaning
Diversification occurs when a business starts selling new products in new markets
Recession meaning
A recession occurs when the value of an economy’s output of goods and services falls for six months or longer
Entrepreneur meaning
An entrepreneur is someone who is willing to take the risks involved in starting a new business
