Important definitons

Question 1

Business

Answer 1

A business refers to a firm that engages in selling goods and providing services with the aim of making profit.

Question 2

Stakeholder

Answer 2

An individual or a group of people who are interested in the activities of a business.

Question 3

Objectives

Answer 3

Objectives can be defined as the goals or targets a business plans to achieve in order to achieve their aims.

Question 4

Market Share

Answer 4

The percentage of sales a business has out of the total sales in the industry

Question 5

Industry

Answer 5

A collection of firms

Question 6

Small Firm

Answer 6

A firm which employs less than 50 employees.

Question 7

large firm

Answer 7

One which has a workforce of over 250 employees.

Question 8

Entrepreneur

Answer 8

A person who organizes the factors of production in a business in order to produce a good or service whilst acknowledging the element of rick in order to make a profit.

Question 9

Incorporated business

Answer 9

A business that has a separate legal identity from its owners. Very often take the form of limited liability companies.

Question 10

Unincorporated businesses

Answer 10

A business where the owner and the business are considered to be both one and the same.

Question 11

Private Sector

Answer 11

Consists of organizations that operate for the sole purpose of profit. They are owned by private individuals and firms.

Question 12

Sole Trader

Answer 12

This is the simplest form of business organization

Question 13

Partnership

Answer 13

This where a group of people consisting of 2 to 20 invests money in a business