key words definitions

Question 1

Market

Answer 1

The arena in which buyers and sellers exchange goods and services for money.

Question 2

Demand

Answer 2

The quantity of a good or service that consumers are willing and able to purchase at a given price.

Question 3

Supply

Answer 3

The quantity of a good or service that producers are willing and able to offer for sale at a given price.

Question 4

Revenue

Answer 4

The income generated from normal business operations, calculated as the price of goods or services multiplied by the quantity sold.

Question 5

Profit

Answer 5

The financial gain obtained when revenue from sales exceeds the costs of production and operation.

Question 6

Loss

Answer 6

The financial deficit that occurs when the costs of production and operation exceed the revenue from sales.

Question 7

Break-even point

Answer 7

The level of sales at which total revenues equal total costs, resulting in neither profit nor loss.

Question 8

Entrepreneur

Answer 8

An individual who creates, organizes, and operates a business, taking on financial risks to do so.

Question 9

Stakeholder

Answer 9

Any individual or group that has an interest in the success and functioning of a business, including employees, customers, suppliers, and shareholders.

Question 10

Market research

Answer 10

The process of gathering, analyzing, and interpreting information about a market, including information about potential customers and competitors.

Question 11

Business plan

Answer 11

A formal written document that outlines the goals of a business, the strategy for achieving those goals, and the financial projections.

Question 12

SWOT analysis

Answer 12

A strategic planning tool that identifies and analyses the Strengths, Weaknesses, Opportunities, and Threats of an organization.

Question 13

Cash flow

Answer 13

The movement of money into and out of a business, which is essential for maintaining its liquidity and operations.

Question 14

Assets

Answer 14

Resources owned by a business that have economic value, such as cash, inventory, property, and equipment.

Question 15

Liabilities

Answer 15

The financial obligations or debts that a business owes to others, including loans, accounts payable, and mortgages.

Question 16

Equity

Answer 16

The value of ownership interest in a business, calculated as total assets minus total liabilities.

Question 17

Economies of scale

Answer 17

The cost advantages that a business can achieve by increasing the scale of production, leading to a reduction in average costs per unit.

Question 18

Franchise

Answer 18

A type of business arrangement where a franchisor grants a franchisee the right to operate a business using the franchisor’s brand and business model.

Question 19

Innovation

Answer 19

The process of developing new products, services, or processes that improve efficiency or create new value for customers.

Question 20

Marketing mix

Answer 20

The combination of factors that a business uses to influence consumers to purchase its products, typically described as the 4 Ps: Product, Price, Place, and Promotion.

Question 21

Human resources

Answer 21

The department or function within a business that manages the recruitment, training, and welfare of employees.

Question 22

Organizational structure

Answer 22

The way in which the roles, responsibilities, and authority are arranged within a business to achieve its objectives.

Question 23

Economy

Answer 23

The system of production, distribution, and consumption of goods and services within a society.

Question 24

Inflation

Answer 24

The rate at which the general level of prices for goods and services rises, eroding purchasing power.

Question 25

Interest rate

Answer 25

The cost of borrowing money or the return on savings, usually expressed as a percentage of the amount borrowed or saved.

Question 26

Globalization

Answer 26

The process by which businesses and other organizations develop international influence or operate on an international scale.

Question 27

E-commerce

Answer 27

The buying and selling of goods and services over the internet.

Question 28

Corporate social responsibility (CSR)

Answer 28

A business’s commitment to contribute positively to society and the environment, beyond its financial and legal obligations.

Question 29

Monopoly

Answer 29

A market structure where a single seller dominates the market with no close substitutes for the product or service offered.

Question 30

Merger

Answer 30

The combination of two or more companies into a single entity, typically to achieve greater efficiencies and market power.