Business and its Environment (A Level)

Question 1

Privatisation

Answer 1

the act of selling state - owned and controlled business organisations to investors in the private sector

Question 2

Nationalisation

Answer 2

the transfer of privately owned businesses to state ownership and control

Question 3

minimum wage

Answer 3

employers are not allowed to pay less than the set minimum wage per hour

Question 4

monopoly

Answer 4

a market in which there is only one supplier with no close competitors

Question 5

collusion

Answer 5

businesses agree to work together and restrict competition by fixing prices and sharing contracts between themselves

Question 6

social audit

Answer 6

a report on the impact a business has on society

Question 7

demographic

Answer 7

relating to the structure of the population

Question 8

globalisation

Answer 8

the increasing freedom of movement of goods, capital and people around the world

Question 9

information technology

Answer 9

the use of electronic technology to gather, store, process and communicate information

Question 10

job enrichment

Answer 10

aims to use the full capabilities of workers by giving them the opportunity to do more challenging and fulfilling work

Question 11

protectionism

Answer 11

the use of barriers to free trade to protect a country’s domestic industries

Question 12

Tariff

Answer 12

a tax imposed on an imported product

Question 13

Quota

Answer 13

a physical limit placed on the quantity of imports of certain products

Question 14

voluntary exports limits

Answer 14

agreed limits to the quantity of certain goods sold by one country to another (possibly to discourage the setting of tariffs/ quotas)

Question 15

free international trade

Answer 15

trade with no restrictions or barriers that might prevent or limit trade between countries

Question 16

greenwashing

Answer 16

giving a false impression or providing misleading information about how a company’s products are environmentally sound and sustainable

Question 17

environmental audit

Answer 17

assesses the impact of the activities and decisions of a business on the environment

Question 18

sustainability

Answer 18

activities that meet the needs of the present without compromising the ability of future generations to meet their needs

Question 19

green consumerism

Answer 19

the trend for consumers to only buy products that are produced sustainably without environmental damage

Question 20

market failure

Answer 20

when markets fail to achieve the most efficient allocation of resources, resulting in under - or overproduction of certain goods or services

Question 21

external costs

Answer 21

the costs of an economic activity that are not paid for by the producer or consumer, but by the rest of society

Question 22

macroeconomic objectives

Answer 22

the goals a government is aiming to achieve for the whole economy

Question 23

economic growth

Answer 23

an increase in a country’s productive potential, measured by an increase in its real GDP

Question 24

Gross Domestic Product (GDP)

Answer 24

the total value of goods and services produced in a country in one year

Question 25

real GDP

Answer 25

gross domestic product data adjusted for the effects of inflation

Question 26

inflation

Answer 26

an increase in the average price level of goods and services resulting in a fall in the value of money

Question 27

unemployment

Answer 27

when members of the working population are willing and able to work but are unable to find jobs

Question 28

imports

Answer 28

goods and services purchased from other countries

Question 29

exports

Answer 29

goods and services sold to customers and businesses in other countries

Question 30

exchange rate

Answer 30

the price of one currency in terms of another