Chapter 1: Enterprise

Question 1

Define consumer goods

Answer 1

Consumer goods: the physical and tangible goods sold to the general public – they include durable consumer goods, such as cars and washing machines, and non-durable consumer goods, such as food, drinks and sweets that can be used only once.

Question 2

Define consumer services

Answer 2

Consumer services: the non-tangible products sold to the general public – they include hotel accommodation, insurance services and train journeys.

Question 3

Define capital goods

Answer 3

Capital goods: the physical goods used by industry to aid in the production of other goods and services, such as machines and commercial vehicles.

Question 4

Define creating value

Answer 4

Creating value: increasing the difference between the cost of purchasing bough-in materials and the price the finished goods are sold for.

Question 5

Define opportunity cost

Answer 5

Opportunity cost: the benefit of the next most desired option which is given up.

Question 6

Define entrepreneur

Answer 6

Entrepreneur: some one who takes the financial risk of starting and managing a new venture.

Question 7

Define triple bottom line

Answer 7

Triple bottom line: the three objectives of social enterprises: economic, social and environmental.

Question 8

Define social enterprise

Answer 8

Social enterprise: a business with mainly social objectives that reinvests most of its profits into benefiting society rather than maximising returns to owners.

Question 9

Define customers

Answer 9

A customer is anyone who receives a product (good or service) from an organization

Question 10

Define enterprise

Answer 10

An enterprise is a business or organization that uses resources to provide goods or services with the aim of making profit

Question 11

Define adding value

Answer 11

Adding Value is when a business sell goods or services for a higher prices than the cost of bought in materials

Question 12

Define dynamic environment

Answer 12

A dynamic environment are external factors that constantly change and affect the businesses operations

Question 13

Define local business

Answer 13

A local business operates in small well defined parts of a country

Question 14

Define a National business

Answer 14

A national business is a business that has branches or operations across a country

Question 15

Define international business

Answer 15

An international business sells products in more than one country

Question 16

Define multinational business

Answer 16

A multinational business has operations in more than one country

Question 17

Define intraprepreneur

Answer 17

An intrapreneur is an employee within an organization who demonstrates entrepreneurial characteristics

Question 18

Define business plan

Answer 18

A business plan is a written document that outlines an organizations goals, objectives and strategies

Question 19

Define a business

Answer 19

A business is an organization that uses resources to meet the needs of customers by providing a product or service that they demand