All key terms

Question 1

a plan that outlines the actions required to
achieve particular aims and objectives and provides a
way of monitoring progress

Answer 1

Action plan

Question 2

a list of items that will be discussed at a
forthcoming meeting

Answer 2

Agenda

Question 3

a yearly meeting of
shareholders that a limited company is usually legally
required to hold

Answer 3

Annual General Meeting (AGM)

Question 4

the process of communicating in a
non-verbal way through conscious or unconscious
gestures, movements and mannerisms

Answer 4

Body language

Question 5

a name, symbol, logo and/or image in
customers’ minds that clearly distinguish one
product from another

Answer 5

Brand

Question 6

the degree to which consumers buy a particular brand of a product in preference to another
brand

Answer 6

Brand loyalty

Question 7

the strategy of differentiating the products
of one enterprise from those of another through
emphasising an identifiable image

Answer 7

Branding

Question 8

the break-even point is when the total
revenue of an enterprise exactly matches the total
costs and the enterprise is not making either a profit
or a loss

Answer 8

Break-even

Question 9

a financial statement of income and expenditure
prior to a particular period of time

Answer 9

Budget

Question 10

the difference between a budgeted or
anticipated figure and the actual figure

Answer 10

Budget variance

Question 11

a financial institution that receives
deposits and provides loans and other forms of
financial support; it is usually owned by its members,
and so is a mutual organisation

Answer 11

Building society

Question 12

a type of enterprise that usually has
profit as its main objective

Answer 12

Business enterprise

Question 13

a means of bringing
together people to share, and learn from, their
experiences in business and enterprise

Answer 13

Business and enterprise network

Question 14

an organisation that has been
established with the purpose of producing and selling
particular goods and services

Answer 14

Business organisation

Question 15

human-made aids to production

Answer 15

Capital

Question 16

the flow of money into (inflow) and the flow
of money out of (outflow) an enterprise

Answer 16

Cash flow

Question 17

a forecast of expected income and
expenditure over a particular period of time

Answer 17

Cash flow forecast

Question 18

a commercial institution, usually
owned by its shareholders, that receives deposits and
provides loans and other forms of financial support

Answer 18

Commercial bank

Question 19

a person who provides expert advice in a particular area of enterprise activity

Answer 19

Consultant

Question 20

the importance of changes in
consumer preferences in determining the allocation
of scarce resources in an economy

Answer 20

Consumer sovereignty

Question 21

an amount of money held by an
enterprise in reserve in case it is faced by financial
difficulties brought about by unexpected and
unplanned circumstances beyond its control

Answer 21

Contingency fund

Question 22

the difference between sales revenue and
variable costs

Answer 22

Contribution

Question 23

a type of business organisation owned by
its customers or its employees

Answer 23

Co-operative

Question 24

the legal ownership by a person or an
enterprise of certain kinds of material, e.g. musical or
artistic work

Answer 24

Copyright

Question 25

the willingness of an enterprise to accept responsibility for its actions and how they may have an impact on a variety of stakeholders

Answer 25

Corporate social responsibility

Question 26

the introduction of something original and imaginative rather than imitated

Answer 26

Creative

Question 27

a sum of money that an enterprise allows customers before requiring payment and/or a sum of money that an enterprise allows a customer before requiring payment

Answer 27

Credit

Question 28

a financial institution that receives deposits and provides loans and other forms of financial support; it is usually owned by its members, and so is a mutual organisation, but it tends to be limited to particular areas of a country or to particular groups of workers

Answer 28

Credit union

Question 29

a person or organisation that is owed money

Answer 29

Creditor

Question 30

the practice of funding an enterprise project or venture by raising small amounts of money from a large number of people, typically via the internet

Answer 30

Crowdfunding

Question 31

a person or organisation that buys goods and/ or services from an enterprise

Answer 31

Customer

Question 32

a sum of money that is owed by a person or organisation

Answer 32

Debt

Question 33

a person or organisation that owes money

Answer 33

Debtor

Question 34

the amount by which an enterprise’s or an individual’s expenditure or spending exceeds the income over a particular period of time

Answer 34

Deficit

Question 35

where responsibility is passed down to others in an enterprise

Answer 35

Delegation

Question 36

the ways of gaining second-hand information through such methods as analysing sales figures from inside an enterprise or using government research reports from outside the enterprise

Answer 36

Desk research

Question 37

the costs of an enterprise that vary directly with changes in the level of output

Answer 37

Direct costs

Question 38

an investment strategy that aims to reduce risk by combining a variety of different investments that are unlikely all to suffer losses at the same time

Answer 38

Diversification

Question 39

a business organised and run by an entrepreneur who makes decisions and takes risks

Answer 39

Enterprise

Question 40

the showing of initiative, imagination, energy and resourcefulness

Answer 40

Enterprising

Question 41

a contribution to the finance needed by an enterprise organised as a limited company. A share certificate is issued to the shareholder

Answer 41

Equity

Question 42

a way of doing something according to a set of moral principles, values and beliefs

Answer 42

Ethical principle

Question 43

a customer who has bought a product from an enterprise at some point

Answer 43

Existing customer

Question 44

all outgoings over a specific period of time

Answer 44

Expenditure

Question 45

the ways of gaining first-hand information through such methods as a questionnaire or an interview

Answer 45

Field research

Question 46

the official channels of communication used in an enterprise

Answer 46

Formal communication

Question 47

a document that is written to provide information, analyse an issue and make recommendations

Answer 47

Formal report

Question 48

an arrangement whereby one company gives the right to another company to supply its products

Answer 48

Franchise

Question 49

the company allowed by another company to conduct business using the other company’s name and brand

Answer 49

Franchisee

Question 50

the company that allows another company to conduct business using its name and brand

Answer 50

Franchisor

Question 51

a financial institution that receives deposits and provides loans and other forms of financial support, often specialising in providing savings accounts and life insurance plans; it is similar to a building society, but usually on a smaller scale, and is usually owned by its members, so it is a mutual organisation

Answer 51

Friendly society

Question 52

the trend towards worldwide markets in goods and services

Answer 52

Globalisation

Question 53

a bond is issued based on a promise to repay a certain sum of money at a date sometime in the future; a government bond is usually issued by the central bank of a country on behalf of the government – the government guarantees to repay the money on the maturity of the bond, plus interest

Answer 53

Government bond

Question 54

a payment that is usually given to support a particular project or service

Answer 54

Grant

Question 55

the sales revenue of an enterprise less the cost of sales

Answer 55

Gross profit

Question 56

the increase in size of an enterprise through internal and/or external expansion

Answer 56

Growth

Question 57

messages between people on the same organisational level of the organisation

Answer 57

Horizontal communication

Question 58

the knowledge, skills, qualifications, training and experience of a workforce

Answer 58

Human capital

Question 59

all incomings received from different sources over a specific period of time

Answer 59

Income

Question 60

a statement which shows the net profit of an enterprise after all of the expenses have been deducted

Answer 60

Income statement, or profit and loss account

Question 61

a place where resources, space and an appropriate environment are provided for entrepreneurs to start up an enterprise

Answer 61

Incubation Centre

Question 62

the costs of an enterprise that do not vary directly with changes in level of output

Answer 62

Indirect costs

Question 63

the unofficial channels of communication used in an enterprise

Answer 63

Informal communication

Question 64

the process of putting a new idea into practice

Answer 64

Innovation

Question 65

the return on money that has been lent

Answer 65

Interest

Question 66

a global system of interconnected computer networks that provides an extensive range of information resources and services

Answer 66

Internet

Question 67

a computer network that shares information resources and services within a particular enterprise

Answer 67

Intranet

Question 68

the process of purchasing capital assets

Answer 68

Investment

Question 69

skilled, semi-skilled and unskilled workers who can work for an enterprise

Answer 69

Labour

Question 70

natural resources that can be used by an enterprise

Answer 70

Land

Question 71

the distinctive way in which decisions are taken in an enterprise

Answer 71

Leadership style

Question 72

a contractual arrangement whereby an asset is used for a specified period of time on payment of rent

Answer 72

Lease

Question 73

the process or procedure to ensure that an enterprise follows relevant laws, rules and regulations

Answer 73

Legal compliance

Question 74

the person or organisation that rents an asset from a lessor

Answer 74

Lessee

Question 75

the person or organisation that rents out an asset to a lessee

Answer 75

Lessor

Question 76

a company that is legally independent from its shareholders, who as a result have limited liability

Answer 76

Limited company