Gcse Business In The Real World

Question 1

What is the primary purpose of a business?

Answer 1

To make a profit.

Question 2

What is the difference between a good and a service in business?

Answer 2

A good is a physical product, while a service is intangible.

Question 3

What is a business plan?

Answer 3

A formal written document that describes the nature of a business, its objectives, strategies, sales, marketing, and financial forecasts.

Question 4

What is a stakeholder in a business?

Answer 4

Any person or entity that has an interest in a business.

Question 5

What is meant by the term ‘opportunity cost’ in business?

Answer 5

The loss of potential gain from other alternatives when one alternative is chosen.

Question 6

What is a competitive advantage in business?

Answer 6

A condition or circumstance that puts a company in a favorable or superior business position.

Question 7

What is meant by the term ‘economies of scale’?

Answer 7

The cost advantages that a business obtains due to expansion.

Question 8

What are the four main factors of production in business?

Answer 8

Land, labor, capital, and entrepreneurship.

Question 9

What is the difference between fixed costs and variable costs in business?

Answer 9

Fixed costs remain constant, while variable costs change with the level of production.

Question 10

What is the purpose of market research in business?

Answer 10

To gather information about consumers’ needs and desires in order to make informed business decisions.

Question 11

What is a monopoly in business?

Answer 11

A market structure where a single seller or producer controls the supply of a product or service.

Question 12

What is a partnership in business?

Answer 12

A business structure in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Deed.

Question 13

What is meant by the term ‘corporate social responsibility’?

Answer 13

The idea that a business has a duty to act in ways that benefit society.

Question 14

What is the purpose of a SWOT analysis in business?

Answer 14

To identify the strengths, weaknesses, opportunities, and threats of a business.

Question 15

What is meant by the term ‘franchise’ in business?

Answer 15

A type of license that a party (franchisee) acquires to allow them to have access to a business’s (franchisor) proprietary knowledge, processes, and trademarks.

Question 16

What is a sole trader in business?

Answer 16

A business owned and operated by one person.

Question 17

What is the purpose of a profit and loss account in business?

Answer 17

To show the financial performance of a business over a specific period.

Question 18

What is meant by the term ‘revenue’ in business?

Answer 18

The income generated from the sale of goods or services.

Question 19

What is a mission statement in business?

Answer 19

A formal summary of the aims and values of a company, organization, or individual.

Question 20

What is meant by the term ‘branding’ in business?

Answer 20

The process of creating a unique name and image for a product in the consumers’ mind.

Question 21

What is a limited company in business?

Answer 21

A type of business structure that limits the liability of its owners.

Question 22

What is a share in business?

Answer 22

A unit of ownership interest in a corporation or financial asset.

Question 23

What is meant by the term ‘dividend’ in business?

Answer 23

A payment made by a corporation to its shareholders.

Question 24

What is the purpose of a balance sheet in business?

Answer 24

To provide a snapshot of a company’s financial position at a specific point in time.

Question 25

What is a business objective?

Answer 25

A specific, measurable, achievable, relevant, and time-bound target that a business sets to achieve its goals.

Question 26

What is a market segment in business?

Answer 26

A group of people who share one or more common characteristics, needs, or wants within a market.

Question 27

What is meant by the term ‘ethics’ in business?

Answer 27

The moral principles that guide decision-making and behavior in business.

Question 28

What is a product life cycle in business?

Answer 28

The stages through which a product or service passes from introduction to decline.

Question 29

What is a business model?

Answer 29

A plan for the successful operation of a business, identifying revenue sources, customer base, products, and details of financing.

Question 30

What is meant by the term ‘market share’ in business?

Answer 30

The percentage of a market accounted for by a specific entity.

Question 31

What is the purpose of a cash flow forecast in business?

Answer 31

To predict the amount of money that will move in and out of a business over a specific period.

Question 32

What is meant by the term ‘innovation’ in business?

Answer 32

The process of translating an idea or invention into a good or service that creates value.

Question 33

What is a business cycle?

Answer 33

The natural rise and fall of economic growth that occurs over time.

Question 34

What is a tariff in business?

Answer 34

A tax imposed on imported goods and services.

Question 35

What is a business environment?

Answer 35

The external factors that influence the operation of a business.

Question 36

What is meant by the term ‘supply chain’ in business?

Answer 36

The sequence of processes involved in the production and distribution of a product or service.

Question 37

What is a business process?

Answer 37

A series of structured activities or steps that achieve a specific business goal.

Question 38

What is meant by the term ‘globalization’ in business?

Answer 38

The process of interaction and integration among people, companies, and governments worldwide.

Question 39

What is a creditor in business?

Answer 39

A person or entity to whom money is owed.

Question 40

What is a debtor in business?

Answer 40

A person or entity that owes money to others.

Question 41

What is a marketing mix in business?

Answer 41

The set of controllable tactical marketing tools that a company uses to produce a desired response from its target market.

Question 42

What is a business strategy?

Answer 42

A plan of action designed to achieve a specific goal or set of goals.

Question 43

What is a business ethics code?

Answer 43

A set of principles and rules that guide the behavior of individuals in a business environment.

Question 44

What is a trade union in business?

Answer 44

An organization of workers who have come together to achieve common goals such as protecting the integrity of its trade, improving safety standards, and attaining better wages, benefits (such as vacation, health care, and retirement), and working conditions through the increased bargaining power wielded by the creation of a monopoly of the workers.

Question 45

What is a business risk?

Answer 45

The possibility of loss or danger that a business faces in pursuit of its objectives.

Question 46

What is a business merger?

Answer 46

The combination of two or more companies to form a single business entity.

Question 47

What is meant by the term ‘disruption’ in business?

Answer 47

The process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves up market, eventually displacing established competitors.