Business Studies Genral Key Words

Question 1

Business

Answer 1

A business is an organisation that provides goods or supplies a service

Question 2

A Customer

Answer 2

A customer is somone who buys a product

Question 3

A consumer

Answer 3

A consumer is somone who uses or goods or services produced by a business

Question 4

A good

Answer 4

A good is an physical product

Question 5

What is scarcity?

Answer 5

When there are not enough goods and services to meet the wants of the
population

Question 6

What are needs

Answer 6

Needs goods or services that are essential to living

Question 7

What are wants?

Answer 7

Wants good or services which people would like but not essential for living

Question 8

What are the three sectors in which business activity is broken down into? (Primary)

Answer 8

Primary industry concerned with using natural resources. They include
farming mining and oil drilling sometimes produce raw materials like iron ore
and oil

Question 9

What are the three sectors in which business activity is broken down into? (Secondary)

Answer 9

Secondary industry concerned with making and assembling products
manufacturers use raw materials and parts from other industries

Question 10

What are the three sectors in which business activity is broken down into? (Tertiary)

Answer 10

Tertiary sector give something of value to people but are not physical goods
like cinema or a lesson Other examples include banks keeping your money
safe public transport carrying people around etc

Question 11

What are the problems concerned with business growth?

Answer 11

• More difficult to control staff
• Lack of funds
• Lack of expertise
  Diseconomies of scale

Question 12

what is Internal growth?

Answer 12

(also
known as organic growth)
occurs when a business
gets bigger by selling
more of its products.

Question 13

What is External growth?

Answer 13

(also
known as inteqration)
occurs when a business
gets bigger by joining or
buying other businesses

Question 14

Stakeholder

Answer 14

A stakeholder is any person or entity that has an interest in a business or project

Question 15

Ecomerce

Question 16

Globalisation

Answer 16

Globalisation is the
trend for markets to
become worldwide in
scope.

Question 17

Intrest rates

Answer 17

Interest rates refer to
the cost of borrowing
money or the reward for

Question 18

Overdraft

Answer 18

overdraft is a flexible
loan which businesses
can use, whenever
necessary, up to an
agreed limit.

Question 19

Consumer spending

Answer 19

Consumer spending
refers to the value of
goods and services
bought by consumers
over a time period,
usually a month or a year.

Question 20

Income elastic

products

Answer 20

Income elastic
products are those
whose sales are sensitive
to changes in consumers
incomes.

Question 21

Economy

Answer 21

The economy is made up of millions of individual consumers, many thousands
of businesses and governments. All take decisions on what to buy and produce.

Question 22

economic climate

Answer 22

The economic climate describes the state of key factors within a country such
as the level of goods and services produced and the number of jobs available.

Question 23

Enviromental reporting

Answer 23

Environmental
reporting is the
publication of a
business's environmental
performance to the
general public.

Question 24

Pressure group

Answer 24

A pressure group is
a group of people with
a common interest
who influence public
opinion and decisions
by businesses and
governments.

Question 25

Environmental | responsibility

Answer 25

``` Environmental responsibility refers to the taking of decisions by businesses, consumers, governments and other groups with the intention of protecting the environment. ```

Question 26

Sustainability

Answer 26

``` Sustainability refers to methods of production which can be continued in the long term without damage to the environment. ```

Question 27

External costs

Answer 27

``` External costs of production arise when a business's activities result in harmful effects on other people not directly involved in production. ```

Question 28

Fair trade products

Answer 28

``` Fair trade products are those for which customers pay higher prices and offer better trading terms, such as payments with orders. The aim is to improve the living standards of people in poorer countries where the products are produced. ```

Question 29

Ethics

Answer 29

``` Ethics refers to whether a business decision is thought to be morally right or wrong. An ethical decision is made on the basis of what is judged to be morally right. ```

Question 30

Profit

Answer 30

``` Profit measures the difference between the values of a business revenue (sales) and its total costs. ```