The Competitive Environment

Question 1

Markets

Answer 1

markets exist where there are buyers and sellers.

Question 2

Competition

Answer 2

When more than one business is looking to attract the same customers

Question 3

Monopoly

Answer 3

When a business does not face any competition in a particular market

Question 4

Market Share

Answer 4

the percentage of sales in a particular market recorded by a business

Question 5

Uncertainty

Answer 5

occurs where there is a lack of information about a situation. This means the outcome or consequences are very difficult to predict.

Question 6

Risk

Answer 6

The possibility of something going wrong

Question 7

Business plan

Answer 7

a document setting out what a business does and what it hopes to achieve in the future.

Question 8

Diversification

Answer 8

occurs when a business starts selling new products in new markets

Question 9

Recession

Answer 9

occurs when the value of an economy’s output of goods and services falls for 6 months or longer