Business Terms

Question 1

Barter

Answer 1

The exchange of one thing for another without the use of money

Question 2

Labour

Answer 2

People’s physical and mental contribution to the creation of goods and services

Question 3

Market

Answer 3

Any situation that brings together the sellers and buyers of goods or services either directly or indirectly

Question 4

Entrepreneur

Answer 4

A person who undertakes the risks involved in establishing and running a business in the hope of making a profit

Question 5

Entrepreneurship

Answer 5

The act or process of managing a business enterprise

Question 6

Capital

Answer 6

The money or assets used to start and operate a business

Question 7

Marketing

Answer 7

All the processes involving promoting and selling goods or services.

Question 8

Producer

Answer 8

People who supply raw materials to manufacturers who create an end product

Question 9

What is a consumer?

Answer 9

The purchaser of goods or services

Question 10

Specialization

Answer 10

Concentration on providing particular types of goods or services

Question 11

Organization

Answer 11

The act of organising to form different components or individuals into a structure or a purpose

Question 12

Customer

Answer 12

Those who buy their goods and services

Question 13

Economy

Answer 13

The system within a country that determines the production, exchange and consumption of goods and services

Question 14

Goods

Answer 14

Tangible products

Question 15

Supplier

Answer 15

Somebody who supplies goods and services to businesses

Question 16

Trade

Answer 16

The exchange of surplus goods

Question 17

Service

Answer 17

An intangible product

Question 18

Profit

Answer 18

The surplus after all costs of a business have been deducted from total sales

Question 19

Loss

Answer 19

When a business has more expenses than earnings

Question 20

Employee

Answer 20

A person who has agreed to be employed to work for a form of payment under a contract of employment

Question 21

Enterprise

Answer 21

Taking of risks in establishing a business

Question 22

Organization

Answer 22

A social arrangement that pursues goals such as the production of goods and services

Question 23

Exchange

Answer 23

The voluntary trade of goods and services

Question 24

What are free goods

Answer 24

Available to all without charge. They are gifts of nature.

Question 25

What are public goods

Answer 25

Goods which can be consumed by all and usually payed for by taxation. E.g national defense

Question 26

What are merit goods?

Answer 26

Goods that can provide benefits to the consumer as well as to the rest of society. E.g health services and education

Question 27

What is a commodity?

Answer 27

Any final good used for some purpose