Business Definitions

Question 1

Opportunity cost

Answer 1

Opportunity cost refers to what you have to give up to buy what you want in terms of other goods

Question 2

Entrepreneur

Answer 2

Is an individual who creates a business bearing the risks but enjoying the rewards

Question 3

Wages

Answer 3

A payment usually of money for labour or services according usually on a hourly payment

Question 4

Piece rate

Answer 4

Is a way of paying for work based off a particular amount done rather than the time it took to do the job

Question 5

Commission

Answer 5

Is a fee paid to a sales person in exchange for services or completing a sales transaction

Question 6

Fringe benefits

Answer 6

A amount paid on top of your usual basic salary

Question 7

Bonus

Answer 7

One off payment made in addition to a usual payment

Question 8

Profit sharing

Answer 8

Workers receive a share of a profit

Question 9

Shared ownership

Answer 9

Two people equally own the same thing

Question 10

Job rotation

Answer 10

A practice of regularly transitioning all employees between different jobs

Question 11

Job enlargement

Answer 11

Combining tasks across the same level within a company

Question 12

Job empowerment

Answer 12

Is when you give employees more authority and control in their role

Question 13

added value

Answer 13

added value is when you take a product or material and you add to it to make it more interesting to the customer

Question 14

created value

Answer 14

is to take raw materials and manipulate the materials and turn them into something useful

Question 15

specialisation

Answer 15

is when a business is in a specific area

Question 16

what is the economic problem.

Answer 16

the economic is trying to satisfy demand with a limited supplies.

Question 17

opportunity cost

Answer 17

is the next best alternative given up by choosing another item

Question 18

capital

Answer 18

the money on hand to run day to day operations and grow in the future

Question 19

primary sector

Answer 19

they extract the natural materials from the earth to be used in a business

Question 20

private sector

Answer 20

where the goverment doesn’t own all the major businesses so there fore it is considered a private sector n

Question 21

tertiary sector

Answer 21

tertiary is the business that provide services and other sectors of industry for them to buy off and sell to customers