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Questions and Answers
What is the main characteristic of an entrepreneur?
Which of the following best describes 'added value' in a business context?
What distinguishes a public limited company from a private limited company?
In which sector do firms that extract natural resources operate?
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What is the primary function of a business plan?
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What is a key difference between consumer goods and consumer services?
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Which type of business activity is involved in the manufacturing of goods?
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What does the term 'opportunity cost' refer to?
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Study Notes
Key Business Terms
- Entrepreneur: An individual with an idea for a new business, taking most of the risks, but also reaping most of the profits.
- Customer: An individual or organization buying goods or services from a business.
- Consumer goods: Physical goods sold for personal use, non-durable.
- Consumer services: Non-physical products sold to consumers, often not for resale.
- Factors of production: Resources needed to produce goods, such as raw materials, labor, and capital.
- Capital goods: Physical goods used in the production of other goods and services.
- Enterprise: Showing initiative to start a business, taking risks.
- Added value: Increasing the selling price of finished compared to bought-in inputs.
- Opportunity cost: The value of the next best alternative that is sacrificed when a choice is made.
- Multinational business: A business with headquarters in one country but operating branches in others.
- Intrapreneur: A business employee who directly takes responsibility for turning an idea into a new product or venture.
- Business plan: A document outlining a business's objectives, strategies, target market, and financial projections.
Types of Businesses
- Private limited company: A company whose shares are not traded on a stock exchange, typically owned by family members.
- Initial public offering (IPO): Offer to the public to buy shares in a private company.
- Public limited company (PLC): Shares traded on the stock exchange, publicly held.
- Primary sector: Businesses involved in extracting natural resources (farming, fishing, oil).
- Secondary sector: Businesses that process raw materials into finished goods (e.g., manufacturing, construction).
- Tertiary sector: Businesses providing services to consumers and other businesses.
- Quaternary sector: Businesses providing information and knowledge services.
- Public sector: Organisations accountable to and controlled by central or local government.
- Private sector: Businesses owned and controlled by individuals or groups.
- Mixed economy: Economic resources owned and controlled by both the public and private sectors.
- Free market: Economic resources largely owned by the private sector with minimal state intervention.
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Description
Test your understanding of essential business concepts with this quiz on key terms such as entrepreneur, customer, and opportunity cost. Ideal for students studying business fundamentals or anyone interested in enhancing their business vocabulary.
