Key Terms/ Definitions

Question 1

Define budget

Answer 1

a list of income and likely expenditures

Question 2

Define business

Answer 2

any organisation that produces and sells goods and services in order to make a profit.

Question 3

Define income

Answer 3

money received on a regular basis from work, property, business, investment or welfare payments

Question 4

Define labour force

Answer 4

people aged 15 and over who are either employed or unemployed

Question 5

Define profit

Answer 5

what remains after all business expenses are deducted from sales revenue

Question 6

Define goods / services

Answer 6

items that you can see or touch / things done for you by others

Question 7

Define comparison shopping

Answer 7

contacting a number of sellers to obtain the best deal

Question 8

Define scam

Answer 8

an illegal business practice

Question 9

Define EFTPOS

Answer 9

Electronic Funds Transfer Point of Sale: based on the use of payment cards at payment terminals located at points of sale.

Question 10

Define acceptable quality

Answer 10

a product fit for purpose, acceptable in appearance and finish, free from defects, safe and durable

Question 11

Barter

Answer 11

the swapping or exchanging of one good for another

Question 12

caveat emptor

Answer 12

a term meaning “let the buyer beware”

Question 13

commerce

Answer 13

the buying and selling of goods and services between individuals and businesses

Question 14

gross income

Answer 14

income before tax deductions

Question 15

net income

Answer 15

income after tax deductions

Question 16

durable good

Answer 16

a good not frequently purchased and has long-life span

Question 17

disposable income

Answer 17

income after tax has been deducted

Question 18

consumer sovereignty

Answer 18

the power to decide which goods/services survive in the marketplace

Question 19

contract

Answer 19

legally binding agreement

Question 20

depreciation

Answer 20

a reduction in the value of an asset over time, e.g. petrol depreciates 2% every year

Question 21

complementary goods

Answer 21

a good that can only be bought in conjunction with another good, e.g. buying petrol to go with a car. goods related to other goods/ go hand in hand

Question 22

category killers

Answer 22

a large store, typically one of a chain, which specializes in a particular type of discounted merchandise and becomes the dominant retailer in that category.

Question 23

What are manufacturers, retailers and wholesalers

Answer 23

manufacturers manufacture the product, retails sell the product in small quantities (more expensive), wholesalers sell in large quantities (less expensive).

Question 24

mail order and advantages

Answer 24

the sale and ordering of goods by post, generally involving selection from a catalogue.
order from home, a wider range of products.