Chapter 1

Question 1

an employee who is given funds to create something within a business

Answer 1

intrapreneur

Question 2

the distributor of a franchised product or service

Answer 2

franchisee

Question 3

the parent company of a franchise agreement

Answer 3

franchisor

Question 4

a legal agreement in which an individual purchases the right to sell a company’s product or service using the company’s name and trademark

Answer 4

franchise

Question 5

someone who starts, manages and owns a business

Answer 5

entrepreneur

Question 6

income that is not counted towards GDP

Answer 6

underground economy

Question 7

total market value of all goods and services produced within a country

Answer 7

gross domestic product (GDP)

Question 8

letting workers make decisions about how work should be done

Answer 8

empowerment

Question 9

reducing the number of products sold or employees

Answer 9

downsize

Question 10

producing the largest quantity in the least amount of time by using efficient methods and modern equipment

Answer 10

productivity

Question 11

the quantity produced within a given time

Answer 11

output

Question 12

goods made in another country

Answer 12

foreign goods

Question 13

goods made within a country

Answer 13

domestic goods

Question 14

producing products and services quickly and at a low cost

Answer 14

efficiency

Question 15

making the right decisions about what products or services to offer customers

Answer 15

effectiveness

Question 16

the ability of a business in one country to compete with another business in a different country

Answer 16

global competition

Question 17

something entirely new

Answer 17

innovation

Question 18

refers to all businesses within a category

Answer 18

industry

Question 19

type of commercial business that use mostly labor to offer mostly intangible products to satisfy consumer needs

Answer 19

service business

Question 20

businesses engaged in marketing, finance and providing services

Answer 20

commercial businesses

Question 21

businesses that produce used by other businesses

Answer 21

industrial business

Question 22

deals with all money matters related to business

Answer 22

finance

Question 23

includes activities between business and customers involved in buying and selling goods and services

Answer 23

marketing

Question 24

making a product or providing a service

Answer 24

production

Question 25

an organization that produces or distributes a good or service for profit

Answer 25

business