What is business management(Definitions)

Question 1

Input

Answer 1

a human, physical or financial resource needed to create a product

Question 2

Output

Answer 2

a product created using inputs that satisfy consumer’s needs

Question 3

Entrepreneur

Answer 3

a person who starts a business

Question 4

Physical resources

Answer 4

the raw materials, semi-finished products(e.g. steel), and capital goods that a business needs to start producing its product

Question 5

Capital goods

Answer 5

goods that are used to make consumer products

Question 6

Financial resources

Answer 6

the funds needed to set up a business

Question 7

Short-term financing

Answer 7

the financial solutions that a business uses to cover their immediate needs(e.g. inputs, salaries, etc.)

Question 8

Long-term financing

Answer 8

the financial solutions that a business seeks to use for extended periods of time and is typically reserved for major investments or projects

Question 9

Stock

Answer 9

the inventory held by a business to sell to customers(finished products)

Question 10

Inventory

Answer 10

a term used to refer to both the raw materials used in production and the finished goods which are ready for sale

Question 11

Human resources

Answer 11

the people needed to run a business

Question 12

Enterprise

Answer 12

a business venture(new business/business activity that involves the potential for both risk and return

Question 13

Goods

Answer 13

tangible outputs which satisfy consumer needs(e.g. furniture, stationer, etc.)

Question 14

Services

Answer 14

intangible outputs which satisfy consumer needs(e.g. healthcare, education, etc.)

Question 15

Feedback

Answer 15

the process by which the output of a system becomes an input to the same system

Question 16

Sustainability

Answer 16

meeting the needs of the present without compromising the ability of future generations to meet their own needs

Question 17

Economy

Answer 17

a system for producing and provisioning goods and services among a group of people

Question 18

Primary sector

Answer 18

the extraction or production of raw materials from the Earth

Question 19

Secondary sector

Answer 19

the processing of raw materials into finished goods

Question 20

Tertiary sector

Answer 20

the provision of services for consumers or other businesses

Question 21

Quartenary sector

Answer 21

the provision of knowledge-based services(e.g. IT, consultancy, research, etc.)

Question 22

Supply chain

Answer 22

the steps involved in creating products

Question 23

Intergrated business

Answer 23

a business where activities span one or more sectors

Question 24

Outsourcing

Answer 24

the process of having one or more internal functions of a business performed externally by another person or business

Question 25

Opportunity(SWOT)

Answer 25

a favourable external condition or trend that is beneficial to the business

Question 26

Threat(SWOT)

Answer 26

an unfavourable condition or threat which harms the business

Question 27

Business plan

Answer 27

a written document that describes a business, its objectives and its strategies, the market that it is in and its financial forecasts

Question 28

Expansion

Answer 28

when the total value of all goods and services in a country(GDP) increases

Question 29

Recession

Answer 29

when the total value of all goods and services in a country(GDP) decreases(usually for 6 or more months)

Question 30

Inflation

Answer 30

an increase in the general price level(usually expressed as a percentage change)

Question 31

Deflation

Answer 31

a decrease in the general price level(usually expressed as a percentage change)

Question 32

Interest rate

Answer 32

the cost of borrowing money(as a percentage of the principal amount)

Question 33

Exchange rate

Answer 33

the price of one country’s currency in terms of another country’s currency

Question 34

Subsidy

Answer 34

government payment to businesses

Question 35

Tax

Answer 35

payment from individuals and businesses to the government

Question 36

Total revenue

Answer 36

all the income received by the business in a specified period of time

Question 37

Total costs

Answer 37

all the capital spent on a business in a specified period of time