Chapter 1

Question 0

Business

Answer 0

An organisation that provides goods or services to consumers in order to make a profit

Question 1

Profit

Answer 1

The difference between what it costs to produce a good or service and it’s price. ( a business makes profit when their income is greater than their cost of production)

Question 2

Organisation

Answer 2

A group of people who come together to achieve a common goal or set of objectives

Question 3

Not for profit organisation

Answer 3

Their common goal is based on objects rather than making a profit.

Question 4

Finished goods

Answer 4

Those that are ready for consumers to buy and use

Question 5

Market share

Answer 5

A businesses share of the total industry sales for a particular product

Question 6

Multinational corporation

Answer 6

A company that has many different branches in many different countries
Eg. Apple company, or woolworths

Question 7

Return on investment

Answer 7

A positive of negative percentage that relates the money gained or lost on an investment to the cost of the investment

Question 8

Business environment

Answer 8

The surrounding conditions in which the business operates. Can be devised into two categories: internal and external

Question 9

Internal environment

Answer 9

Includes the factors in which the business has some control, such as employees, managers, management style, corporate culture, and company policies

Question 10

External environment

Answer 10

Includes factors in which the business has little control. Can be further divided into operating environment and macro environment

Question 11

Operating environment

Answer 11

Also known as task environment. Refers to specific outside stakeholders with whom the business interacts with.
Eg. Suppliers, customers, interest groups, competitors