Words 1.5

Question 1

Crowdfunding

Answer 1

Obtain from many individuals small investments usually through a web based appeal

Question 2

Entrepreneur

Answer 2

Someone who makes a business idea happen either through their own or by organising others to do the work

Question 3

Piece rate

Answer 3

Paying workers per piece they produce eg £2 per pair of jeans made

Question 4

Budgets

Answer 4

An agreed ceiling on the monthly spending by any department or manager

Question 5

Mission statement

Answer 5

Short powerfully expressed sentence or two that explains the business aims clearly yet motivationally

Question 6

Shareholder value

Answer 6

Mix of shareholder dividends and a rising share price that stem from high and rising profits

Question 7

Staff retention

Answer 7

Literally retaining (keeping) staff

Question 8

Bankrupt

Answer 8

When an individual in unable to meet personal liabilities, some or all of which can be as a consequence of business activities

Question 9

Creditors

Answer 9

Those owed money by a business eg suppliers

Question 10

Debtors

Answer 10

Those that owe the business money eg customers who have bought products

Question 11

Franchisee

Answer 11

An independent business that has bought the rights to use a well known firms logos and trading practices within a specified area

Question 12

Incorporation

Answer 12

Establishing a business as a separate legal entity from its owners and therefore giving the owners limited liability

Question 13

Limited liability

Answer 13

Owners are not liable for for the debts of a business. What they stand to lose is limited to their investment

Question 14

Sole trader

Answer 14

One person business with unlimited liability

Question 15

Unlimited liability

Answer 15

Owners are liable for any debts incurred by the business even if this requires them to sell all there assets and possessions and become personally bankrupt

Question 16

Opportunity cost

Answer 16

The cost of making the next best alternative when making a decision (or when committing resources )

Question 17

Trade off

Answer 17

Accepting less than one thing to achieve more of another eg slightly lower quality in exchange for cheapness

Question 18

Liquidity

Answer 18

Ability of a business owner to pay its bills on time which all depends upon having enough cash in the bank

Question 19

Over trading

Answer 19

when a business expands at a rate it cannot be sustained by its capital base

Question 20

Capital

Answer 20

Wealth in the form of money or assets taken a sign of the financial strength of an individual business or nation - available for investment or development