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# TEST RECAP ## Key Terms - Chapter 1 1. **Entrepreneur:** An individual with a new business idea, bearing most risks for potential rewards. 2. **Customer:** An individual purchasing goods or services from a business, either consumer or a larger organization. 3. **Consumer:** An individual purc...

# TEST RECAP ## Key Terms - Chapter 1 1. **Entrepreneur:** An individual with a new business idea, bearing most risks for potential rewards. 2. **Customer:** An individual purchasing goods or services from a business, either consumer or a larger organization. 3. **Consumer:** An individual purchasing goods/services for personal use. 4. **Consumer Goods:** Physical, tangible goods (non-durable) bought by consumers (e.g., food, drinks). 5. **Consumer Services:** Non-tangible, non-durable goods sold to consumers (e.g., hotel stays, insurance). 6. **Factors of Production:** Resources needed to produce goods/services (e.g., labor, capital). 7. **Capital Goods:** Physical goods used by industries (machines, tools) for other production purposes. 8. **Enterprise:** Taking initiative and risk to start a business. 9. **Added Value:** Increasing the difference between cost of inputs and selling price of finished products. 10. **Branding:** Differentiating a product/service via unique symbols/names. 11. **Opportunity Cost:** Value of the next best alternative, foregone due to a particular choice. 12. **Multinational Business:** Company headquartered in one country with branches (factories) in others. 13. **Intrapreneur:** Business employee turning an idea into a new product/business. 14. **Business Plan:** A document outlining business objectives, strategies, markets, and financial projections. ## Chapter 2 1. **Private Limited Company:** A company with members (shareholders), often family members, who are not allowed to sell shares publicly. 2. **Initial Public Offering (IPO):** Offering company shares to the public to buy. 3. **Public Limited Company:** Shares can be traded on a stock exchange bought and sold by the general public. 4. **Primary Sector Business Activity:** Firms involved in the extraction of natural resources (e.g., agriculture, fishing, oil, mining). 5. **Secondary Sector Business Activity:** Firms processing raw materials and manufacturing goods (e.g., computers, clothes, construction). 6. **Tertiary Sector Business Activity:** Firms providing services to consumers and other businesses (e.g., banking, hotels, tourism). 7. **Quaternary Sector Business Activity:** Businesses focusing on information and knowledge (e.g., computing, web-design, consultancies). 8. **Public Sector:** Government or state-owned entities. 9. **Private Sector:** Businesses owned and controlled by individuals or groups. 10. **Mixed Economy:** Economic resources owned and controlled by both private and public sectors. 11. **Free Market:** Economic resources primarily owned by the private sector, with very little government intervention.