Definitions Business AS Flashcards
What is the definition of ‘business’?
A business is an organization that produces or sells goods or services to make a profit.
What is a ‘limited company’?
A limited company is a business structure that limits the owner’s liability to the amount invested in the business.
What does ‘market share’ refer to?
Market share refers to the percentage of total sales in a market captured by a brand or company.
What is the purpose of a business plan?
A business plan outlines the goals, strategies, and financial forecasts for a business.
True or False: A non-profit organization aims to make a profit for its owners.
False
What does ‘entrepreneurship’ mean?
Entrepreneurship is the process of starting and running a new business, often involving risk and innovation.
Fill in the blank: ________ is the process of identifying and satisfying customer needs.
Marketing
What is ‘corporate social responsibility’?
Corporate social responsibility (CSR) is the practice of businesses considering their impact on society and the environment.
What is ‘capital’ in a business context?
Capital refers to the financial resources or assets that a business uses to fund its operations.
True or False: A ‘monopoly’ exists when a single company dominates the market.
True
What does ‘supply and demand’ describe?
Supply and demand describe the relationship between the quantity of goods available and the desire of consumers to purchase them.
Fill in the blank: The ________ is the amount of money a business earns after all expenses are deducted.
profit
What is ‘business ethics’?
Business ethics refers to the moral principles that guide the behavior of a business and its employees.
Multiple Choice: Which of the following is a type of market structure? A) Perfect competition B) Partial monopoly C) Full monopoly D) All of the above
D) All of the above
What is ‘human resources’?
Human resources refers to the department in a business that manages employee recruitment, training, and welfare.
True or False: ‘E-commerce’ refers to buying and selling goods and services over the internet.
True
What is ‘consumer behavior’?
Consumer behavior is the study of how individuals make decisions to spend their available resources on consumption.
Fill in the blank: A ________ is a formal agreement between two or more parties to conduct business.
contract
What does ‘interest rate’ mean?
Interest rate is the amount charged by lenders to borrowers for the use of money, expressed as a percentage.
Multiple Choice: Which is NOT a method of promotion? A) Advertising B) Public relations C) Distribution D) Sales promotion
C) Distribution
What is ‘diversification’ in business?
Diversification is a strategy of increasing sales volume by introducing new products into new markets.
True or False: ‘Outsourcing’ involves contracting out business processes to third parties.
True
What is a ‘target market’?
A target market is a specific group of consumers at which a business aims its products and services.
Fill in the blank: ________ refers to the process of measuring the performance of a business against its objectives.
Evaluation
What is ‘cash flow’?
Cash flow is the total amount of money being transferred into and out of a business.
Multiple Choice: Which financial statement shows a company’s revenues and expenses? A) Balance sheet B) Income statement C) Cash flow statement D) Statement of changes in equity
B) Income statement
What is ‘market segmentation’?
Market segmentation is the process of dividing a broad consumer or business market into sub-groups based on shared characteristics.
True or False: ‘Brand loyalty’ refers to consumers’ commitment to repurchase or continue using a brand.
True
What does ‘price elasticity of demand’ measure?
Price elasticity of demand measures how responsive the quantity demanded of a good is to a change in its price.
Fill in the blank: A ________ is a visual representation of the relationship between price and quantity supplied.
supply curve
What is ‘business strategy’?
Business strategy is a plan of action designed to achieve a long-term goal of the business.
True or False: A ‘merger’ occurs when two companies join together to form one.
True
What is ‘market research’?
Market research is the process of gathering, analyzing, and interpreting information about a market.
Fill in the blank: ________ is the act of promoting products or services through various forms of communication.
Advertising
What is a ‘competitive advantage’?
A competitive advantage is a condition that allows a company to produce goods or services better or more cheaply than its rivals.
Multiple Choice: Which of the following is a technique for pricing products? A) Penetration pricing B) Skimming pricing C) Cost-plus pricing D) All of the above
D) All of the above
What is ‘inventory management’?
Inventory management is the supervision of non-capitalized assets, or inventory, and stock items.
True or False: ‘Vertical integration’ involves a company controlling its supply chain.
True
What does ‘business cycle’ refer to?
The business cycle refers to the fluctuations in economic activity that an economy experiences over time.
Fill in the blank: ________ is the process of comparing a business’s performance against best practices.
Benchmarking
What is ‘financial forecasting’?
Financial forecasting is the process of estimating future financial outcomes based on historical data.
Multiple Choice: Which of the following is a source of finance for a business? A) Loans B) Grants C) Equity financing D) All of the above
D) All of the above
What is ‘product life cycle’?
Product life cycle refers to the stages a product goes through from development to decline.
True or False: ‘Globalization’ refers to the increasing interconnectedness of economies around the world.
True
What is ‘trade credit’?
Trade credit is an agreement between businesses allowing the buyer to purchase goods and pay for them later.
Fill in the blank: ________ is the ratio of current assets to current liabilities.
Current ratio
What does ‘value chain’ refer to?
The value chain refers to the full range of activities that businesses engage in to bring a product or service to the market.
What is ‘customer relationship management’?
Customer relationship management (CRM) is a strategy for managing a company’s interactions with current and potential customers.
True or False: ‘Depreciation’ is the reduction in the value of an asset over time.
True
What does ‘break-even point’ mean?
The break-even point is the level of sales at which total revenues equal total costs.
Fill in the blank: ________ is the practice of managing a company’s financial resources.
Financial management
What is ‘quality assurance’?
Quality assurance is the process of ensuring that products meet certain quality standards before they reach consumers.
Multiple Choice: Which of the following is a common method of market entry? A) Exporting B) Joint ventures C) Licensing D) All of the above
D) All of the above
What is ‘risk management’?
Risk management is the identification, assessment, and prioritization of risks followed by coordinated efforts to minimize, monitor, and control the probability of unfortunate events.
True or False: ‘Liquidity’ refers to how easily an asset can be converted to cash.
True
What does ‘cost-benefit analysis’ involve?
Cost-benefit analysis involves comparing the costs and benefits of a decision to determine its feasibility.
Fill in the blank: ________ is the amount of product that consumers are willing to buy at a given price.
Quantity demanded
What is ‘lead time’?
Lead time is the amount of time that passes from the start of a process until its completion.
What is ‘economic growth’?
Economic growth is an increase in the production of goods and services in an economy over time.
True or False: ‘Inflation’ is the rate at which the general level of prices for goods and services rises.
True
What does ‘stakeholder’ mean?
A stakeholder is any individual or group that has an interest in the success of a business.
Fill in the blank: ________ is a legal entity that is separate from its owners.
Corporation
What is ‘social media marketing’?
Social media marketing is the use of social media platforms to promote products or services.
What is the definition of ‘Business Environment’?
The combination of internal and external factors that influence a company’s operating situation.
True or False: ‘Market Share’ refers to the percentage of an industry’s sales that a particular company controls.
True
Fill in the blank: ‘_________ is the process of identifying and satisfying customer needs profitably.’
Marketing
What is ‘Supply Chain Management’?
The management of the flow of goods and services and includes all processes that transform raw materials into final products.
What does ‘Gross Profit’ represent?
The difference between revenue and the cost of goods sold.
Multiple Choice: Which of the following is NOT a factor of production? A) Land B) Labor C) Money D) Capital
C) Money
What is the definition of ‘Entrepreneurship’?
The process of starting and running a new business, often involving risk and innovation.
True or False: ‘Opportunity Cost’ is the cost of the next best alternative foregone when making a decision.
True
What is ‘Stakeholder’?
Any individual or group that has an interest in the success of a business.
Fill in the blank: ‘_________ is the legal right to use a brand or product name.’
Trademark
What does ‘Corporate Social Responsibility (CSR)’ refer to?
A business model in which companies integrate social and environmental concerns in their operations and interactions with stakeholders.
Multiple Choice: Which term describes a market structure with many firms competing against each other? A) Monopoly B) Oligopoly C) Perfect Competition D) Monopolistic Competition
C) Perfect Competition
What is the definition of ‘Economies of Scale’?
The cost advantages that a business obtains due to the scale of operation, with cost per unit of output generally decreasing with increasing scale.
True or False: ‘Inflation’ is a decrease in the general price level of goods and services.
False
What is ‘Cash Flow’?
The total amount of money being transferred into and out of a business.
Fill in the blank: ‘_________ is the measure of a company’s financial performance that shows the net profit as a percentage of the revenue.’
Profit Margin
What does ‘SWOT Analysis’ stand for?
Strengths, Weaknesses, Opportunities, Threats.
Multiple Choice: Which of the following is a non-renewable resource? A) Solar Energy B) Wind Energy C) Natural Gas D) Biomass
C) Natural Gas
What is the definition of ‘Market Segmentation’?
The process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors.
True or False: ‘Brand Loyalty’ is the tendency of consumers to continue buying the same brand of goods rather than competing brands.
True
Fill in the blank: ‘_________ is an arrangement where a company allows another company to produce its product for a fee.’
Franchising
What does ‘Balance Sheet’ show?
A financial statement that summarizes a company’s assets, liabilities, and shareholders’ equity at a specific point in time.
Multiple Choice: Which of the following is a feature of a monopoly? A) Many competitors B) Unique product C) Price taker D) Low barriers to entry
B) Unique product
What is ‘Direct Competition’?
Competition between businesses that offer the same or very similar products or services.
True or False: ‘Breach of Contract’ occurs when one party fails to fulfill their contractual obligations.
True
What is ‘Market Research’?
The process of gathering, analyzing, and interpreting information about a market.
Fill in the blank: ‘_________ refers to the total value of all goods and services produced in a country over a specific time period.’
Gross Domestic Product (GDP)
What does ‘Liquidity’ refer to?
The ability of a company to meet its short-term financial obligations.
Multiple Choice: Which of the following is a type of non-price competition? A) Discounts B) Advertising C) Price Cuts D) Sales Promotions
B) Advertising
What is ‘Human Resources Management’?
The strategic approach to the management of an organization’s most valued asset—the people.
True or False: ‘Outsourcing’ means contracting out business processes to a third party.
True
Fill in the blank: ‘_________ is a written agreement between two or more parties.’
Contract
What does ‘Target Market’ mean?
A specific group of consumers at which a company aims its products and services.
Multiple Choice: Which of the following is a characteristic of a service? A) Intangibility B) Durability C) Homogeneity D) Tangibility
A) Intangibility
What is ‘E-commerce’?
Buying and selling goods or services using the internet.
True or False: ‘Diversification’ is a risk management strategy that mixes a wide variety of investments within a portfolio.
True
Fill in the blank: ‘_________ is a document that outlines the terms and conditions of a loan.’
Loan Agreement
What does ‘Competitive Advantage’ mean?
An advantage that a company has over its competitors, allowing it to generate greater sales or margins.
Multiple Choice: Which term refers to the overall economic environment in which a business operates? A) Microenvironment B) Macroenvironment C) Business Cycle D) Economic Climate
B) Macroenvironment
What is ‘Customer Relationship Management (CRM)’?
A strategy for managing a company’s interactions with current and potential customers.
True or False: ‘Depreciation’ refers to the increase in value of an asset over time.
False
Fill in the blank: ‘_________ is the practice of promoting products by placing them in movies or television shows.’
Product Placement
What does ‘Price Elasticity of Demand’ measure?
The responsiveness of the quantity demanded of a good to a change in its price.
Multiple Choice: Which of the following is a source of internal finance? A) Loan B) Share Capital C) Retained Earnings D) Bank Overdraft
C) Retained Earnings
What is ‘Business Plan’?
A formal statement of business goals, the reasons they are attainable, and the plans for reaching them.
True or False: ‘Market Penetration’ is a strategy to increase sales of existing products in existing markets.
True
Fill in the blank: ‘_________ is the amount of money a business earns after all expenses have been deducted from revenue.’
Net Profit
What does ‘Brand Equity’ refer to?
The value added to a product or service by having a well-known brand name.
Multiple Choice: Which of the following is a characteristic of a corporation? A) Unlimited liability B) Limited liability C) Sole ownership D) No legal entity
B) Limited liability
What is ‘Market Entry Strategy’?
The planned method of delivering goods or services to a new target market.
True or False: ‘Vertical Integration’ is when a company acquires another company in the same industry.
False
Fill in the blank: ‘_________ is the systematic process of evaluating the financial performance of a business.’
Financial Analysis
What does ‘Social Media Marketing’ involve?
Using social media platforms to promote a product or service.
Multiple Choice: Which of the following is a form of direct marketing? A) Email B) Billboard C) TV Ad D) Radio Ad
A) Email
What is ‘Economic Order Quantity (EOQ)’?
The optimal order quantity a company should purchase to minimize logistics costs.
True or False: ‘Risk Management’ is the process of identifying, assessing, and controlling threats to an organization’s capital and earnings.
True
Fill in the blank: ‘_________ is the amount of a good that consumers are willing and able to purchase at various prices.’
Demand
What does ‘Value Proposition’ mean?
The promise of value to be delivered to the customer, explaining how a product solves a problem.
Multiple Choice: Which of the following is a characteristic of a nonprofit organization? A) Profit-driven B) Charitable purpose C) Limited liability D) Shareholders
B) Charitable purpose
What is ‘Break-even Analysis’?
A calculation to determine the sales volume at which total revenues equal total costs.
True or False: ‘Corporate Governance’ refers to the system by which companies are directed and controlled.
True
Fill in the blank: ‘_________ is a financial instrument that represents ownership in a company.’
Share
What does ‘Product Life Cycle’ describe?
The stages a product goes through from development to decline.
Multiple Choice: Which of the following is a method of qualitative research? A) Surveys B) Experiments C) Focus Groups D) Observations
C) Focus Groups
What is ‘Globalization’?
The process of interaction and integration among people, companies, and governments worldwide.
True or False: ‘Outsourcing’ can lead to cost savings for a business.
True
Fill in the blank: ‘_________ is the systematic study of the behavior of individuals and groups in organizations.’
Organizational Behavior
What does ‘Diversification’ mean?
A risk management strategy that mixes a wide variety of investments within a portfolio.
Multiple Choice: Which of the following is a benefit of digital marketing? A) Higher costs B) Wider reach C) Limited analytics D) Decreased engagement
B) Wider reach
What is ‘Consumer Behavior’?
The study of how individuals make decisions to spend their available resources on consumption-related items.
True or False: ‘Market Saturation’ occurs when a product has reached its maximum potential sales in a market.
True
