Enterprise

Question 1

What is business objectives

Answer 1

Are measurable targets set by the business, such as sales or profits that have to be within a given time period

Question 2

Transformation process

Answer 2

Involves converting inputs into outputs

Question 3

Factors of production
And name 4 Inputs

Answer 3

Are the inputs into the transformation process of a business ( Land , labour , capital , enterprise)

Question 4

What is the Primary sector

Answer 4

Is the first stage of production and includes extracting or growing resources. Farming/ mining / fishing

Question 5

What is Adding value

Answer 5

Occurs in a transformation process when outputs are produced that are worth more than the inputs brought in to provide them

Question 6

Brand

Answer 6

Is a name, design, logo, symbol or indeed anything that makes a product recognisable and distinguishes it from the competition in the eyes of the customer.

Question 7

Market forces

Answer 7

Are the forces of supply and demand which determine the price of a product and the quality and the quantity bought and sold in a market

Question 8

Opportunity cost

Answer 8

Measures the sacrifice made by choosing one option in terms of the next best alternative for the business

Question 9

Entrepreneurs

Answer 9

Are individuals who take the risk to create or start a new business or project

Question 10

Enterprise

Answer 10

Is the skill needed to make a new idea work

Question 11

Intrapreneurs

Answer 11

Are people within an established business who think and act like entrepreneurs

Question 12

Nationalisation

Answer 12

Occurs when a government takes ownership of a business from the private sector into the public sector

Question 13

Privatisation

Answer 13

Occurs when a government transfers ownership of a business from the public sector to the private sector

Question 14

Merit goods

Answer 14

Are goods or services such as education whose benefits individuals may not fully appreciate.

Question 15

Unlimited liability

Answer 15

Occurs when an individual or groups of individuals are personally responsible for all the actions of their business. They can lose their personal assets if the business has financial problems

Question 16

Company

Answer 16

Is a business organisation which has its has its own legal identity and which has limited liability

Question 17

Shareholders

Answer 17

Are persons or organisations that own a part of a company

Question 18

Limited liability

Answer 18

Means that investors can lose the money they have invested into the business but their personal possessions are safe. ( limits to their risks )

Question 19

Franchise

Answer 19

Occurs when a franchiser sells the rights to use or sell their products to a franchise.

Question 20

Niche

Answer 20

Is a small segment of a market

Question 21

Objective

Answer 21

Is a target that is measurable and has given timescale

Question 22

Labour productivity

Answer 22

Measures the output per time period of an employee

Question 23

Corporate objective

Answer 23

Is a target set for the business as a whole

Question 24

Market share

Answer 24

Measures a businesses sales as a percentage of the total market sales

Question 25

Cash flow

Answer 25

The movement of cash into and out of a business over a time period

Question 26

Ethics

Answer 26

Are moral principles that can shape the way a business behaves

Question 27

Social responsibility

Answer 27

Is a philosophy under which businesses consider the interests of all groups in society as a central part of their decision making

Question 28

Mission statement

Answer 28

Sets out the overall purpose of a business

Question 29

Aim

Answer 29

A long term goal that determines the objectives that an organisation sets itself

Question 30

Strategy

Answer 30

Is the long term plan to achieve the objective of a business

Question 31

Tactics

Answer 31

Are the short term actions needed to implement the strategy

Question 32

Target

Answer 32

A goal pursued by a business such as achieving a particular market share or rate of growth of sales

Question 33

Ethical behaviour

Answer 33

Behaviour that is thought to be morally correct and not necessarily most profitable

Question 34

Stakeholders

Answer 34

Are groups of individuals who have an interest in a business

Question 35

Authority

Answer 35

Is the power or ability to carry through a task or action

Question 36

Internal stakeholders

Answer 36

Are Individuals and groups within a business eg employees

Question 37

External stakeholder

Answer 37

Are groups outside of the business for example people who live near the business premises

Question 38

Dividends

Answer 38

Is money that is paid out of profits to shareholders. ( reward to the owners of the business)