Chapter 1 - Enterprise

Question 1

Entrepreneur

Answer 1

An individual who has the idea for a new business, starts it up and carries most of the risks but benefits from the reward

Question 2

Customer

Answer 2

An individual consumer or organisation that purchases goods or services from a business

Question 3

Consumer

Answer 3

An individual who purchases good and services for personal use

Question 4

Consumer Goods

Answer 4

The physical and tangible goods sold to consumers that are not intended for resale. These include durable goods (cars, etc) and non-durable goods (sweets, drinks)

Question 5

Consumer Services

Answer 5

The non-tangible products sold to consumers that are not intended for resale - include accommodation, insurance, legal, etc

Question 6

Capital Goods

Answer 6

The physical goods used by businesses to aid in the production of other goods and services (eg. machinery, delivery vehicles)

Question 7

Factors of Production

Answer 7

The resources needed by a business to produce goods or services - land, labour, capital, enterprise

Question 8

Enterprise

Answer 8

The action of showing initiative to take the risk to set up a business

Question 9

Added Value

Answer 9

The difference between the cost of purchasing bought-in inputs and the selling price of the finished goods

Question 10

Adding Value

Answer 10

Increasing the difference between the cost of purchasing bought-in inputs and the selling price of the finished goods

Question 11

Branding

Answer 11

The process of differentiating a product by developing a symbol, name, image or trademark for it.

Question 12

Opportunity Cost

Answer 12

The benefit of the next best alternative that is foregone

Question 13

Multinational Business (MNC)

Answer 13

A business organisation that has its headquarters in one country, but with operating branches in other countries

Question 14

Intrapreneur

Answer 14

A business employee who takes direct responsibility for turning into an idea into a profitable new product/business venture

Question 15

Business Plan

Answer 15

A written document that describes a business, its objectives, its strategies, the market it is in, and its financial forecasts - used to persuade investors/lenders