Key Words For Unit 2

Question 1

Define research and development

Answer 1

Research into new products or processes and developing the ideas that are generated from the research

Question 2

Define localise

Answer 2

Adapt to suit the local area and it’s needs

Question 3

Define innovation

Answer 3

The act of creating new products/processes

Question 4

Define the ethics

Answer 4

Moral principle or standards

Question 5

Define e commerce

Answer 5

Using the internet to carry out business transactions

Question 6

Define stakeholder

Answer 6

Someone with an interest in business activity

Question 7

Define PLC

Answer 7

An incorporated business that can sell public shares

Question 8

Define a trade off

Answer 8

A balance between two opposing objectives

Question 9

Define an asset

Answer 9

An item owned by a business like premises, equipment or stock that can be re possessed

Question 10

Define profit margin

Answer 10

Proportion of value

Question 11

Define interest

Answer 11

Money added onto debt that is the cost or borrowing the money that also has to be paid, this increases commonly each month

Question 12

Define green audit

Answer 12

Review of business environment impact

Question 13

Define merger

Answer 13

When two or more businesses join

Question 14

Define sustainability

Answer 14

Acting to ensure that natural resources are used responsibly

Question 15

Define take over

Answer 15

When another business buys a business

Question 16

Define a finite resource

Answer 16

A resource that doesn’t renew fast enough to meet demand

Question 17

Define domestically

Answer 17

At home or within a businesses home country

Question 18

Define protectionist measure

Answer 18

Government action to reduce import flow

Question 19

Define trading bloc

Answer 19

A group of countries that agree to act together to promote

Question 20

Define a tariff

Answer 20

Ta or cost of exporting/ importing

Question 21

Define protectionism

Answer 21

Protecting goods and services coming into the country