Blake Draper

Question 1

assets

Answer 1

items of value owned by a business

Question 2

balance of payments

Answer 2

a record of a country’s trade and financial transactions with the rest of the world

Question 3

business

Answer 3

any activity conducted by an individual or individuals to produce and sell goods and services that
satisfy the needs of society, as well as making profit

Question 4

business mentors

Answer 4

a person with extensive business experience who offers knowledge, wisdom and advice to
a less experienced business manager or entrepreneur

Question 5

business opportunity

Answer 5

a set of circumstances that presents itself as an avenue to success

Question 6

corporate social responsibility

Answer 6

managing a business in such a way that the broader social welfare of the community, including its employees, customers, suppliers and the environment, is taken into consideration when
making business decisions

Question 7

economic growth

Answer 7

when the real value of goods and services increases over a set period of time

Question 8

economy

Answer 8

a system set up to determine what to produce, how to produce and to whom production will be
distributed

Question 9

effectiveness

Answer 9

a measure of whether the business is doing the right things — those that are most important to
the success of the business

Question 10

efficiency

Answer 10

measures how well we do things. For example, if we are able to produce more outputs with from the
same inputs we have become more efficient at using these inputs.

Question 11

entrepreneur

Answer 11

r a person who is willing to seize opportunities to start and operate a business, and is prepared to
take risks in the hope of making a profit

Question 12

entrepreneurship

Answer 12

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

Question 13

exports

Answer 13

goods or services sold by one country to individuals, businesses or governments in another country
with the aim of extending sales and market penetration

Question 14

feasibility study

Answer 14

an assessment of the practicality and potential for success of a proposed business idea

Question 15

goal

Answer 15

l what a business expects to achieve over a set period of time

Question 16

industry

Answer 16

the classification of groups of businesses related to the particular good or service they produce

Question 17

innovation

Answer 17

either creating a new good, service or process, or significantly improving an existing one

Question 18

market conditions

Answer 18

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

Question 19

market research

Answer 19

a process of systematically collecting, recording and analysing information concerning a
specific market

Question 20

market share

Answer 20

the proportion of total sales in a given market or industry that is controlled or held by a business,
calculated for a specific period of time

Question 21

mission statement

Answer 21

describes what the business does and how it will achieve its vision

Question 22

profit

Answer 22

what is left after business expenses have been deducted from money earned from revenue

Question 23

research and development

Answer 23

(R&D) a set of activities undertaken to improve existing products, create new
products and improve production processes

Question 24

return on investment

Answer 24

a positive or negative percentage that relates the money gained or lost on an investment
to the cost of that investment. It is usually taken to mean that the return on the investment occurs over a
12-month period.

Question 25

revenue

Answer 25

the income that a business earns from the sale of goods and services to customers

Question 26

shareholders

Answer 26

(or members) the owners of a company

Question 27

vision statement

Answer 27

describes where the business wants to be in the future (say five years from now)