Chapters 12-18

Question 1

Fiscal Policy

Answer 1

Using changes in taxation and government expenditure to manage the economy.

Question 2

Lay off (staff)

Answer 2

Make employees redundant.

Question 3

Social security payments

Answer 3

Money taken by the British government from people’s wages to pay for the system of payments to people who are unemployed or ill.

Question 4

Anti-competitive practices

Answer 4

(Restrictive trade practices) attempts by firms to prevent or restrict competition.

Question 5

Barriers to entry

Answer 5

Restrictions that mean it is difficult for new firms to enter a market.

Question 6

Merger

Answer 6

Two or more businesses joining together to form one new firm.

Question 7

Protectionism

Answer 7

Use of trade barriers to protect domestic producers.

Question 8

Infant industries

Answer 8

New industries that are yet to be established.

Question 9

Dumping

Answer 9

Where a business sells goods in another country often below cost.

Question 10

Trade barriers

Answer 10

Measures designed to restrict trade.

Question 11

Quota

Answer 11

Physical limit on the quantity of imports allowed into a country.

Question 12

Subsidy

Answer 12

Financial support given to a domestic producer to help compete with overseas firms.

Question 13

Interest

Answer 13

Price of borrowed money (and the reward to savers)

Question 14

Monetary policy

Answer 14

Using changes in interest rates and the money supply to manage the economy.

Question 15

Budget

Answer 15

An official statement that a government makes about how much it intends to spend and what the rates of taxes will be for the next year or six months.

Question 16

Tax allowances

Answer 16

Part of income that is not taxed.

Question 17

Budgetary measures

Answer 17

Actions taken by the government to influence business and the economy.

Question 18

Urbanisation

Answer 18

Process of constructing more and more buildings on rural land.

Question 19

Capital-intensive

Answer 19

Use of relatively more machinery than labour in production.

Question 20

Sustainable development

Answer 20

Idea that people should satisfy their basic needs and enjoy improved living standards without compromising the quality of life of future generations.

Question 21

Capital employed

Answer 21

Amount of money invested in a business.

Question 22

Overtrading

Answer 22

Taking on more work than a business can afford to fund effectively.

Question 23

Inventory

Answer 23

Stocks of goods.

Question 24

Fixed assets

Answer 24

Resources that are used repeatedly for a period of time by a business such as property, tools, vehicles and machinery .

Question 25

Downturn

Answer 25

Period or precess in which a business activity, production, etc. is reduced and conditions become worse.

Question 26

Undercapitalised

Answer 26

Starting a business with insufficient capital.

Question 27

Outcompeted

Answer 27

Perform more effectively in a particular field.

Question 28

Overdue

Answer 28

Money that has not been paid by the time expected.

Question 29

Communication channels

Answer 29

Routes along which information might travel in a business.

Question 30

Downward communication

Answer 30

Passing messages from the top of the organisation to those at the bottom.

Question 31

Upward communication

Answer 31

Passing messages from the bottom of an organisation to those at the top.

Question 32

Horizontal communication

Answer 32

Exchange of information between parties on the same level in an organisation’s hierarchy.

Question 33

Internal communication

Answer 33

Communication between people inside the business.

Question 34

External communication

Answer 34

Communication between the business and those outside such as customers investors or the authorities.

Question 35

Formal communication

Answer 35

Use of recognised channel when communicating.

Question 36

Informal communication

Answer 36

Use of non-approved channels when communicating.

Question 37

Redeployment

Answer 37

Moving someone or something to a different place or job.

Question 38

Internal recruitment

Answer 38

Appointing workers from inside the business.

Question 39

External recruitment

Answer 39

Appointing workers from outside the business.