Definitions

Question 1

USP

Answer 1

Unique Selling Point

Question 2

What is a business?

Answer 2

It is an organisation that exists to provide goods and services in exchange for profit.

Question 3

Meaning of entrepreneur

Answer 3

Somebody that takes a risk to start a business

Question 4

What is a costumer?

Answer 4

Someone who buys the product

Question 5

What is a consumer?

Answer 5

Someone who uses the product

Question 6

What are goods?

Answer 6

Product that is tangible

Question 7

Meaning of social enterprise

Answer 7

A business that has a positive impact on society

Question 8

What are services?

Answer 8

Products that are intangible

Question 9

Meaning of interdependency

Answer 9

Business in a chain production that rely on one another

Question 10

Meaning of deindustrialisation

Answer 10

Where there is a decline in manufacturing in a country and an increase in tertiary businesses

Question 11

Meaning of enterprise

Answer 11

The skills of the people involved in businesses to identify business opportunities and bring resources together

Question 12

Meaning of capital

Answer 12

Investment in equipment required to produce/run a business such as factories and machinery

Question 13

Meaning of labour

Answer 13

The skills available and numbers of workers employed by a business

Question 14

Meaning of land

Answer 14

Physical site on which a business is based and the natural resources required

Question 15

What is opportunity cost?

Answer 15

It is the benefit lost of the next best alternative

Question 16

Meaning of business environment

Answer 16

All factors outside of a business that can affect it

Question 17

What is a sole trader?

Answer 17

A business that is owned and run by a single individual

Question 18

Meaning of unlimited liability

Answer 18

Owners are personally responsible for the debts of the business
May have to sell your one possessions to pay business the money they owe

Question 19

What are partnerships?

Answer 19

Partners are the joint owners of a business

Must have between 2 and 20 partners

Question 20

Meaning of equal share

Answer 20

All partners get an equal share of profits and debts regardless of initial investment of hours worked

Question 21

Meaning of limited companies

Answer 21

A company whose shares are traded publicly on the stock exchange and have limited liability

Question 22

Meaning of private limited companies

Answer 22

A company whose shares are sold privately often to friends and family

Question 23

PLC =

Answer 23

Limited companies

Question 24

LTD =

Answer 24

Private limited companies

Question 25

Meaning of limited liability

Answer 25

The shareholders are only liable for the debts of the company up to the value of what they originally invested

Question 26

What is a shareholder?

Answer 26

Buys business, has a percentage of the business

Question 27

Meaning of Not for Profit

Answer 27

A business that is set up to achieve other objectives than make a profit

Question 28

What is an aim?

Answer 28

An overall goal or target a business hopes to reach

Question 29

What is an objective?

Answer 29

It is a specific, measurable target that outlines how a business will achieve that aim

Question 30

What is a stakeholder?

Answer 30

It is an individual, group or an organisation that effects or is affected by a business’s actions

Question 31

Meaning of location

Answer 31

Where a business is geographically situated