Business in the real world

• What is a good?

  • A physical product, such as a car
• What is a

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• What is a service?

  • An intangible product
  • e.g financial advice or a bus journey
• What is a customer?

  • someone who buys a product from a business
• What is a consumer?

  • someone who uses goods and services produced by businesses
• What is an entrepreneur?


  • someone willing to take the risks involved in starting a new business
• What is entrepreneurship?


  • the ability to be an entrepreneur - to take risks to develop a business idea
• What is a social enterprise?

  • a business set up to help society rather than to make a profit
• What are resources?


  • the inputs that businesses use to provide their goods/services
• What is an enterprise?

  • Another word for a business

  OR

  • The skills of the people involved in the business to identify business opportunities and bring together resources to meet these opportunities
• What is interest for investment/savings?

  • the money paid by banks as a reward to attract people to save with them.
• What are interest rates?

  • the cost of borrowing money or the reward for saving money
  • expressed as a percentage
• What is inflation?


  • the rate at which prices are increasing
• What is GDP?


  • Gross Domestic Product
  • measures all the income earned in a country's economy in a year
• What is a Sole Trader?


  • someone who sets up in business on their own
• What is profit?


  • the difference between the values of a business' revenue and its total costs
• What is unlimited liability?

  • the person's personal possessions are at risk if there are any problems
  • no limit to the amount of money the owners may have to pay out
• What is a partnership?

  • when two or more people join together in a business enterprise to pursue profit
• What is a deed of partnership?

  • an agreement between partners that sets out the rules of the partnership
  • e.g
  • how profits will be divided
  • how the partnership will be valued if someone wants to leave
• What are stakeholders?


  • individuals and organisations that are affected by, and affect the activities of a business
  • e.g employees, shareholders, managers, local community
• What is a company?

  • a business that has its own legal identity
  • it can own items, owe money, sue and be sued
• What is a shareholder?


  • a person or organisation that owns part of a company.
  • each shareholder owns a 'share' of the business
• What is the stock exchange?

  • a market for buying selling shares of public limited companies
• What is a flotation?

  • when a LTD company becomes a PLC and has its shares listed on the Stock Exchange
• What is an aim?

  • A general, long-term target/goal of a business
• What is an objective?

  • Specific, short-term targets set to meet its overall aims
• What are private sector organisations?

  • organisations owned by individuals
• What are public sector organisations?

  • Organisations owned by the government
• What are dividends?


  • the financial rewards paid out to shareholders each year.
• What is negotiation?


  • when two sides discuss what they want and try to reach a solution
• What are Protectionist measures?

  • policies that governments use to protect their own businesses against foreign competition
• What is a tariff?

  • a tax on foreign goods imported into a country
• What are imports?


  • goods and services purchased from overseas by consumers of businesses
• What is a quota?

  • A limit on the number of foreign goods imported into a country
• What is a business plan?

  • a document setting out details about each element of the business, and what it hopes to achieve in the future.
• What is business planning?


  • the process of producing a business plan
• What is uncertainty?


  • when there is a lack of information about a situation
• What is a risk?

  • the possibility of something going wronh
• What is internal growth? (aka organic growth)


  • when a business gets bigger by selling more of its products
• What is external growth?

  • when a business gets bigger by joining/buying other businesses