Business In The Real World (Topic 1)

Question 1

Good

Answer 1

A physical product

Question 2

Service

Answer 2

An intangible product

Question 3

Consumer

Answer 3

Uses the service (not the good)

Etc. Spotify

Question 4

Costumer

Answer 4

Someone who buys a good but not a service

Question 5

Social Enterprise

Answer 5

A business that does not aim to make a profit but to help society
Etc. Charities

Question 6

Sole Trader

Answer 6

Business owned and opperated by one person

Question 7

Stock Exchange

Answer 7

A place where shares of business or social enterprises are bought and sold

Question 8

Aim

Answer 8

A general goal of a business

Question 9

Objective

Answer 9

Specific target set out by a business to achieve - SMART

Question 10

Business

Answer 10

A business aims to provide something that is demanded by others

Question 11

Internel Growth/ Organic Growth

Answer 11

Occurs when a business gets bigger by selling more of it’s own product

Question 12

External Growth

Answer 12

When a business gets bigger by joining or buying other businesses

Question 13

Market Capitalisation

Answer 13

Measures the value of all ,the businesses, shares

Market price of a share X the overall amount of shares

Question 14

E-commerce

Answer 14

Is the act of buying or selling a product using an electrical system such as the internet

Question 15

Outsourcing

Answer 15

Occurs when a business uses another business to produce for it

Question 16

Merger

Answer 16

When two or more businesses join together to form a new business

Question 17

Takeover

Answer 17

When a business buys control of another business

Question 18

Economics of Scale

Answer 18

Occurs when a business’s unit cost of production fall as its output rises and the business expands

Question 19

Diseconomics of Scale

Answer 19

Occurs when the cost per unit increases as a business expands

Question 20

Quota

Answer 20

Is a limit on the number of foreign goods imported into a country

Question 21

Imports

Answer 21

Goods and services purchased from overseas consumers of businesses

Question 22

Tarrif

Answer 22

Is a tax on foreign goods imported into a country

Question 23

Protectionist Measures

Answer 23

Policies government uses to protect their own businesses against foreign competition

Question 24

Business Plan

Answer 24

Is a document setting out what a business does and what it wants to achieve in the future

Question 25

Business planning

Answer 25

The process of producing a business plan