Business In The Real World

Question 1

Operations

Answer 1

Dealings with products

Question 2

Human Resources (HR)

Answer 2

Dealings with employees

Question 3

Marketing

Answer 3

Dealings with customers

Question 4

Finance

Answer 4

Dealings with money

Question 5

Goods

Answer 5

Physical products produced by organisations

Question 6

Services

Answer 6

Intangible products produced by organisations

Question 7

Wants

Answer 7

Products desired but not needed

Question 8

Needs

Answer 8

Products required to survive

Question 9

Capital

Answer 9

Man made products that aid production

Question 10

Enterprise

Answer 10

Managerial and organisational roles

Question 11

Land

Answer 11

Raw materials

Question 12

Labour

Answer 12

Employees

Question 13

Opportunity cost

Answer 13

Value of the next best alternative forgone

Question 14

Primary sector

Answer 14

Extracting raw materials

Question 15

Secondary sector

Answer 15

Manufacturing

Question 16

Tertiary sector

Answer 16

Providing services

Question 17

External influences

Answer 17

Factors that affect a business that they have no control over

Question 18

Entrepreneur

Answer 18

A person that uses their enterprise skills to start a business

Question 19

Legal structure

Answer 19

Government classification system that regulates certain aspects of a business

Question 20

Incorporation

Answer 20

Process of creating a separate legal identity for a business

Question 21

Sole trader

Answer 21

Unincorporated business that is owned by an individual who is subject to limited liability

Question 22

Partnership

Answer 22

Two or more people who own an unincorporated business with limited liability

Question 23

Ltd

Answer 23

Incorporated business whose shares are not traded publicly

Question 24

Share

Answer 24

A portion of the ownership of a company

Question 25

Share holder

Answer 25

-a person, company or institution that owns at least one share of a company’s stock

Question 26

Business

Answer 26

An organisation that produces products to make a profit

Question 27

PLC

Answer 27

Incorporated business whose shares are traded on the stock market

Question 28

Not for profit organisation

Answer 28

Manages their resources in order to achieve goals other than making a profit

Question 29

Social enterprise

Answer 29

Business that reinvests it’s profits into a social or environmental mission

Question 30

Business plan

Answer 30

Document that outlines a businesses purpose and how it will organise its resources in order to achieve its goals

Question 31

Aim

Answer 31

Long term goal that a business organises its resources in order to achieve

Question 32

Objective

Answer 32

Clearly stated outcome that helps an organisation to achieve its aim

Question 33

Stakeholder

Answer 33

A group of people who have an interest in a business because of its effect on them

Question 34

Location factor

Answer 34

Issue’s a business takes into consideration when choosing the physical place from where the business will operate

Question 35

External growth

Answer 35

When an organisation increases their sales through integrating with other businesses

Question 36

Organic growth

Answer 36

When an organisation increases their sales through expanding their internal operations

Question 37

Outsourcing

Answer 37

When a business subcontracts a third party to produce products or provide services