Keywords

Question 1

Interdependence

Answer 1

The way in which all the businesses in different sectors depend on each other no matter what sector it is, as each sector is needed for the chain of production, for example, diamonds are mined (primary sector), then made into rings (secondary sector), then sold by a shop jeweller (tertiary sector)

Question 2

Stakeholder

Answer 2

Is an individual group or people who have an interest or concern in a business

Question 3

Owners/shareholders

Answer 3

Someone who owns a share of a business, for example companies are owned by shareholders

Question 4

Managers

Answer 4

Someone who manages the business

Question 5

Employees

Answer 5

People who work for the business

Question 6

Customers

Answer 6

People who buy the product or use the services

Question 7

Suppliers

Answer 7

People who employ the business with what they need

Question 8

Local community

Answer 8

People who live in the area where the business is

Question 9

Government

Answer 9

This who run the country

Question 10

Pressure groups

Answer 10

Groups who have something they are fighting for or believe in

Question 11

Competitors

Answer 11

Businesses who are similar to one another

Question 12

Specialisation

Answer 12

When a business concentrates on one main activity, for example, farmers concentrate on growing cocoa and Cadbury concentrate on making chocolate

Question 13

Public sector

Answer 13

Organisations that are owned to control and funded by the government, they exist to prove a service, for example, NHS

Question 14

Private sector

Answer 14

Businesses that are owned by people or groups of people, most exist to make a profit, for example Nandos

Question 15

Voluntary or not for profit sector

Answer 15

Organisations that exist to benefit a community or cause often ran by volunteers, for example, St John’s Ambulance

Question 16

Mission statement

Answer 16

Explains the main purpose of the business and the activities it is doing to achieve this

Question 17

Vision statement

Answer 17

Focuses on the future and it explains what the business is hoping or planning to do, ideally should be inspirational

Question 18

Unlimited liability

Answer 18

When the business and sole proprietor become as one

Question 19

Limited liability

Answer 19

Where the owners of the business (shareholders) will not be personally responsible for any debts the business may have

Question 20

Minority shareholders

Answer 20

Where private individuals usually only own a small percentage of most public limited companies because they can’t afford to buy large numbers of shares

Question 21

Institutional investors

Answer 21

Where major shareholders like banks and investment companies will own a large number of shares and these shareholders have a greater influence on how the company is operated

Question 22

Franchise

Answer 22

Where a business sells a sole proprietor the right to set up a business using their name, for example, McDonalds

Question 23

The franchiser

Answer 23

Is the business or person who sells the right to another business to operate a franchise, they may want to run a number of their own business but also may want to let others run the business in other parts of the country

Question 24

Franchisee

Answer 24

The business is bought by the franchisee, once they have bought the franchise they have to pay a portion of their profits to the fanchisor on a regular basis

Question 25

Multinational company

Answer 25

Is one that operates in more than one country and typically operates in a number of major global markets

Question 26

Globalisation

Answer 26

When businesses trade on an international level

Question 27

Footloose

Answer 27

Where a business can locate anywhere

Question 28

Internal expansion

Answer 28

This is where the business grows by increasing its production, perhaps by building new factories and shops

Question 29

External expansion

Answer 29

1. Takeover - where one business takes over another business this is achieved by buying enough shares in the flier it be able to outvote shareholders
2. Merge - where two or more businesses agree to join together to become one large business, for example, Curry’s PC World