Definitions

Question 1

What is profit?

Answer 1

is the money left over after the expenses have been subtracted from the revenue

Question 2

What is a business?

Answer 2

an organisation that provides a good/service in order to make a profit

Question 3

What is an objective?

Answer 3

what an organisation aims or expects to achieve over a set period time

Question 4

What is market share?

Answer 4

looks at an industry where a business owns a percentage of the market

Question 5

What are strategies?

Answer 5

a way to achieve a financial, social or personal objective/goal

Question 6

What is a stakeholder?

Answer 6

any group or individual that has a vested interest in or is affected by business activities

Question 7

What is a partnership agreement?

Answer 7

is a document that establishes the terms of the partnership and the agreements between partners

Question 8

What is limited liability?

Answer 8

means that business owners and shareholders can only be held responsible for what they put into the business and their personal assets are protected

Question 9

What is goodwill?

Answer 9

the monetary value attached to the reputation of a business

Question 10

What is a profit organisation?

Answer 10

an organisation that exist to make a profit

Question 11

What is a non-profit organisation?

Answer 11

a organisation that exist to achieve a social mission

Question 12

What are business ethics?

Answer 12

is the application of moral standards to business operations

Question 13

What is social responsibility?

Answer 13

the management of a business that takes the community and social welfare into consideration

Question 14

What is tax revenue?

Answer 14

the income that is gained by governments though taxation

Question 15

What is economic growth?

Answer 15

when the value of goods/services increases over time

Question 16

What are export earnings?

Answer 16

the earnings of a company or country that are generated though exports

Question 17

What are performance indicators?

Answer 17

methods used to measure and evaluate the success of a business

Question 18

What is a franchise?

Answer 18

buying the rights from another business to distribute its product under its name

Question 19

What is an asset?

Answer 19

any item of value owned by a business or individual

Question 20

What is a sole trader?

Answer 20

a type of business ownership where a single person is entitled to keep all profits after tax but liable for all losses

Question 21

What is entrepreneurship?

Answer 21

attempting to establish a business idea or venture in the hope of making a profit

Question 22

What is unlimited liability?

Answer 22

means the business owner is personally responsible for all debts and may be forced to sell personal assets in order to pay them off

Question 23

What is advertising?

Answer 23

is a paid non-personal message communicated though a mass medium

Question 24

What is internal environment?

Answer 24

the factors which the business has some degree of control

Question 25

What is the external operating environment?

Answer 25

consist of stakeholders outside the business who have a direct impact on business operations

Question 26

What is the external macro environment?

Answer 26

the environment in which the business operates with in and has little control over

Question 27

What is human resource management?

Answer 27

the effective management of the relationship between the employer and employees