The competitive environment

Question 1

Business plan

Answer 1

It’s a document setting out what a business does and what it hopes to achieve in the future

Question 2

Competition

Answer 2

Exist when more than one business is attempting to attract the same customers

Question 3

Monopoly

Answer 3

Exist with a business does not face any compettion in a particular market

Question 4

Market share

Answer 4

It’s a percentage of sales in a particular market recorded by a business

Question 5

Diversification

Answer 5

Occurs when a business starting ro sell an new products in new markets

Question 6

Recession

Answer 6

Occurs when the value of an company outputs goods and services for six months or longer

Question 7

Uncertainty

Answer 7

Because where there is lack of information about the situation. This means that hospital consequences are very difficult to predict

Question 8

Risk

Answer 8

He is a possibility of something going wrong

Question 9

Entrepreneur

Answer 9

He is someone who is willing to take the risk involved in starting a new business

Question 10

Competitive market

Answer 10

• A competitive market is where a large number of sellers are selling to large number of customers
• Businesses cannot charge high prices because customers have lots of substitute choices and can shop somewhere else