section 1 AI Flashcards
What is a business?
An organization that provides goods or services to customers for profit.
Define ‘entrepreneur’.
An individual who takes the initiative to start and manage a business, assuming the risks and rewards.
What is ‘capital’ in business terms?
The financial assets or resources that are used to fund a business’s operations and growth.
True or False: A sole trader is a type of business owned by one person.
True
Fill in the blank: A __________ is a business owned by two or more people.
partnership
What does ‘limited liability’ mean?
A legal structure that protects the owner’s personal assets from being used to pay business debts.
What is a ‘market’ in business?
A place where buyers and sellers interact to exchange goods or services.
Define ‘consumer’.
An individual or group that purchases goods or services for personal use.
What is ‘demand’?
The quantity of a product that consumers are willing and able to purchase at various prices.
True or False: Supply refers to the quantity of a product that producers are willing to sell at various prices.
True
What is ‘price elasticity of demand’?
A measure of how much the quantity demanded of a good responds to a change in its price.
Fill in the blank: The __________ is the difference between total revenue and total costs.
profit
Define ‘competition’ in a business context.
The rivalry among businesses to attract customers and gain market share.
What is ‘market research’?
The process of gathering, analyzing, and interpreting information about a market, including information about the target market and consumers.
True or False: A monopoly is a market structure where a single seller dominates the market.
True
What does ‘branding’ refer to?
The process of creating a unique name and image for a product in the consumers’ mind.
Fill in the blank: The __________ is the total value of goods and services produced in a country in a year.
Gross Domestic Product (GDP)
Define ‘stakeholder’.
Any individual or group that has an interest in the performance and activities of a business.
What is ‘business ethics’?
The principles and standards that guide behavior in the world of business.
True or False: Corporate social responsibility (CSR) refers to a company’s duty to act in the best interests of their environments and society.
True
What is ‘entrepreneurship’?
The process of starting and running one’s own business.
Fill in the blank: __________ is the practice of analyzing market conditions and consumer behavior.
Market analysis
Define ‘business plan’.
A document that outlines a business’s goals, strategies, and financial projections.
What is ‘financial forecasting’?
The process of estimating future financial outcomes based on historical data and analysis.
True or False: A venture capitalist is an individual who invests in startups in exchange for equity.
True
What is ‘e-commerce’?
The buying and selling of goods and services over the internet.
