unit 1

• What are aims and objectives in a business context?

  They are the things that a business is trying to achieve, such as grow larger or make more profit.
• What is backwards vertical growth?

  It occurs when a business merges with or takes over a business that supplies it with goods or services.
• What are business objectives?

  They include survival, profit, growth, and providing a service.
• What is a business plan?


  A simple plan that sets out details on the products or services being sold, finance sources, marketing strategies, and market research.
• What is capital in a business context?

  Money raised to start or develop a business.
• What is a deed of partnership?


  It is a document that sets out the operations of the partnership, including capital investment and profit sharing.
• What does diversification mean in business?


  It refers to when a business merges with or takes over another business with which there is no connection.
• What is a dividend?


  It is the money paid to a shareholder from the profits of a limited company.
• Who is an entrepreneur?


  A person who takes the risk of starting and running a business enterprise.
• What are enterprising characteristics?

  They include being determined, creative, and having the ability to take risks.
• What is external growth in a business?


  It is the growth of a business by takeover or merger.
• Who are external stakeholders?


  They include the local community, suppliers, customers, and government.
• What does finance refer to in a business context?

  It is a term used instead of money, specifically the money needed to start a business.
• What is forwards vertical growth?


  It occurs when a business merges with or takes over a business that it supplies goods or services to.
• What does growth mean in a business context?

  It refers to a business becoming larger, for example, by making more products or opening more locations.
• What is horizontal growth?


  It is a merger or takeover where two businesses are involved in a similar operation.
• What is meant by internal stakeholders?


  They are the business owners and people who work in the business.
• What is limited liability?


  It is where the responsibility for the debts of a business is limited to the amount invested by a shareholder.
• What are limited liability partnerships?

  They are part partnership, part limited company, where owners are members and have limited liability.
• What are markets in a business context?

  They are places where a business sells its goods and services.
• What is market share?

  It is the share of the total market for a product or service, shown as a percentage.
• What is a merger?


  It is when two or more businesses agree to join together.
• What does it mean to operate a business?


  It explains how a business works.
• What is organic growth?


  It is the growth of a business internally by increasing sales.
• What is a partnership?


  A business owned by between two and twenty partners.
• What is a private limited company?


  It is a smaller business owned by at least two shareholders, where shares cannot be sold to the general public.
• What is profit?


  It is the difference between revenue and costs.
• What does providing a service mean in a business context?


  It means ensuring that the needs of the customers are being met.
• What is a public limited company?


  It is a large business where shares can be sold to the general public, enabling vast sums of money to be raised.
• What are resources in a business context?


  They are the things a business needs to make it work, including finance, staff, and materials.
• What does satisficing mean?


  It means making just enough profit to provide the business owner with a decent living.
• Who are shareholders?


  They are the owners of a private or public limited company.
• What is a sleeping partner?


  A partner who invests in a partnership but has no part in the running of the business.
• What is a sole trader?


  A business owned by one person.
• What does spotting an opportunity mean?


  It is the ability to see the need for a particular product or service that customers need.
• Who are stakeholders?


  They are groups or individuals who have an interest in a business.
• What is a stakeholder group?


  It includes owners, employees, customers, suppliers, government, and the local community.
• What does success mean for a business?

  It can take many forms, including making profit, surviving, and providing a good service to customers.
• What does survival mean in a business context?


  It means when a business just manages to keep going.
• What is a takeover?

  It is when a business takes a controlling interest in another business.