2nd Set

Question 0

What is market research?

Answer 0

Market research isa process of systematically collecting, recording and analysing information concerning a specific market.

Question 1

What is demand?

Answer 1

Demand is the quantity of a product that consumers are prepared to purchase

Question 2

What are market conditions?

Answer 2

They are the features of a market which a new product or service is to be introduced, and include factors such as the number of potential customers, level of competition and potential for growth.

Question 3

What is innovation?

Answer 3

Innovation is either creating a new product, service or process, or significantly improving an existing one.

Question 4

What is research and development?

Answer 4

R&D is a set of activities undertaken to: improve existing products, creating new products and improve production.

Question 5

What is entrepreneurship?

Answer 5

Entrepreneurship is the ability and willingness to start, operate and assume the risk of a business venture in the hope of making a profit.

Question 6

What is a business entity?

Answer 6

A business entity is any organisation engaged in the production of goods and services.

Question 7

What is an incorporated business?

Answer 7

A business that is incorporated has a separate legal entity from the owner.

Question 8

What us a sole trader?

Answer 8

A sole trader (proprietor) business is a business owned and operated by one person.

Question 9

What is unlimited liability?

Answer 9

Unlimited liability means the business owner is personally responsible for all the debts of his or her business.

Question 10

What is a partnership?

Answer 10

A partnership is an unincorporated legal business structure with a minimum of two and a maximum of 20 owners.

Question 11

What is a silent partner?

Answer 11

A silent or sleeping partner contributes financially to the business but takes no part in the running of the business.

Question 12

What is an incorporation?

Answer 12

Incorporation is the process that businesses go through to become a register company or separate legal entity.

Question 13

What is a shareholder?

Answer 13

Shareholders are owners of a company.

Question 14

What is limited liability?

Answer 14

Limited liability means that the shareholders in a company cannot be held personally responsible for the debts of the business.

Question 15

Wha is a proprietary company?

Answer 15

A proprietary (private) company is an incorporated business with a minimum of two, and a maximum of 50 private shareholders.

Question 16

What is a cooperative?

Answer 16

A cooperative is a democratic organisation owned and controlled by the people it serves, who join together for a common benefit.

Question 17

What is a trust?

Answer 17

A trust is a business structure where a trustee (usually a company) holds property or carries out business on behalf of the members of the trust, known as beneficiaries.

Question 18

What is goodwill?

Answer 18

Goodwill is a monetary value attached to the reputation of a particular business.

Question 19

What is a franchise?

Answer 19

A franchise means buying the rights from another business to distribute its products under its name.

Question 20

What is a franchisor?

Answer 20

A franchisor is an individual or organisation that grants a franchise.

Question 21

What is a franchisee?

Answer 21

A franchisee is an individual or organisation that purchases a franchise.

Question 22

What is zoning?

Answer 22

Zoning is a means by which local councils allocate land for different uses, such as residential, commercial, recreational and industrial.

Question 23

What is a complementary business?

Answer 23

A complementary business offers products or services that are related to a different business and that may be of use to the customers of that business.