Business definitions

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IGCSE business 0450 definitions for revision

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Cindy Chege

Kenya

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Business definitions


Froggy Jumps Business definitionsOnline version IGCSE business 0450 definitions for revision by Cindy Chege 1 What is revenue in a business? a Total assets b Profit after costs c Income from selling goods or services 2 market share means? a Company’s total profit b The percentage of total market sales held by a brand c Total number of customers 3 What is a sole trader? a A business with many shareholders b A government entity c A business owned by one person 4 Define cash flow forecast. a Estimate of future cash inflows and outflows b Record of past profits c Actual cash balance today 5 What are fixed costs? a Costs that change with production b Costs paid only in credit c Costs that do not vary with output in the short run 6 What does market research do? a Sets product price b Produces goods c Gathers, analyzes and interprets information about a market 7 What is Kaizen in operations? a Hiring more staff only b One-off major redesign c Continuous improvement through waste elimination 8 What is economic recession? a A period of falling GDP b Rapid growth in GDP c Stable prices with rising wages 9 What are current assets? a Assets owned for use within one year b Non-current assets only c Intangible assets only 10 What is a dividend? a Interest on loans b Payments to shareholders from profits c Employee bonus 11 What is the term for the value of a country's output in a year? a CPI b GNI c GDP 12 Inflation is the general rise in what? a Prices of goods and services b Unemployment rate c Exchange rates 13 Which market is large-scale, broad consumer reach? a Mass market b Niche market c Trade market 14 A market segment is a sub-group with similar what? a Locations b Characteristics or preferences c Income only 15 What describes the process of gathering data about a market? a Market research b Market forecasting c Market auditing 16 The four Ps of marketing are product, price, place and what? a Packaging b Promotion c People 17 Brand loyalty means customers repeatedly buy the same what? a Brand b Product variation c Store 18 What term describes the total money received from sales minus costs? a Revenue b Profit c Cash flow 19 A cash flow forecast estimates future what? a Inventory levels b Inflows and outflows of cash c Depreciation 20 What is the balance between exports and imports called? a Current account b Trade balance c Balance of payments 21 Which policy aims to increase supply and efficiency? a Monetary policy b Fiscal policy c Supply-side policy 22 External costs are paid by whom? a The business only b Customers only c Society at large 23 What is a liability that must be repaid within a year? a Deferred liability b Non-current liability c Current liability 24 Depreciation reflects the fall in value of what? a Inventory b Fixed asset c Intangible asset 25 Which pricing strategy lowers price to enter a market? a Premium pricing b Cost-plus pricing c Penetration pricing 26 What is the term for the cost of producing or buying goods sold? a Revenue b Cost of sales c Gross profit 27 Which production method minimizes inventory by timing? a Flow production b Just-in-time c Batch production 28 Backward or forward are types of what integration? a Horizontal integration b Diversification c Vertical integration 29 Which type of business has separate legal status from owners? a Unincorporated business b Incorporated business c Sole trader 30 What is the file of assets and liabilities at a moment called? a Income statement b Cash flow report c Statement of financial position 31 What term describes a product's stage after growth but before decline? a Decline b Maturity stage c Introduction 32 Which budget plans marketing spending for a period? a Operational budget b Marketing budget c Sales forecast 33 What is the process of promoting a product to the target audience? a Manufacturing b Promotion c Sourcing 34 What is the term for a business owned by one person? a Sole trader b Partnership c Public company 35 Which factor of production includes land and resources? a Entrepreneurship b Natural resources c Capital 36 What describes payments to shareholders from profits? a Dividends b Coupons c Interest 37 A focus group is a group used for what? a Staff training b Market research input c Product manufacturing 38 What term describes a business activity focused on services? a Secondary sector b Tertiary sector c Primary sector 39 Which is a non-current asset lasting more than one year? a Inventory b Cash c Property 40 Which leadership style involves democratic decision-making? a Autocratic leadership b Laissez-faire c Democratic leadership 41 What is the name of the process of giving a subordinate authority? a Decentralization b Delegation c Localization 42 What is the term for the price-related resistance to price changes? a Income elasticity b Price elasticity of demand c Cross elasticity 43 Which term describes a business that operates in multiple countries? a Domestic b Multinational c Local 44 What is the difference between revenue and profit called? a Gross profit b Operating income c Net profit 45 What type of research uses data already collected by others? a Experimental research b Primary research c Secondary research 46 Which market term means customers buy for personal use, not resale? a Consumer b Industrial c Business buyer 47 What is the term for a product’s life cycle stage that extends sales? a Product launch b Extension strategy c Revocation 48 Which cost varies with output level? a Variable cost b Fixed cost c Sunk cost 49 What is the difference between total costs and revenue at break-even? a Maximum profit b Negative profit c Zero profit 50 Which document lists rights and duties in a job? a Job description b Staff handbook c Contract of employment 51 What describes a product’s image in the market? a Brand slogan b Brand logo c Brand image 52 What is a business with a social aim plus profit reinvestment? a Non-profit b Public corporation c Social enterprise 53 Which pricing method adds a profit margin to cost? a Penetration pricing b Dynamic pricing c Cost-plus pricing 54 What is the cash balance at period end called? a Opening cash b Closing cash c Net cash flow 55 What is product distribution channel? a Production method b Advertising channel c Means to pass product to consumer 56 What is a company-owned yet publicly traded entity called? a Sole trader b Public limited company c Private limited company 57 Which term means cost that does not vary with output? a Fixed cost b Opportunity cost c Variable cost 58 What is the process of guiding and directing organizational members? a Leadership b Supervision c Management 59 What is a business plan for the marketing mix called? a Marketing strategy b Sales plan c Operational plan 60 Which term is a non-zero-sum group interested in performance? a Stakeholder b Competitor c Shareholder 61 What describes a business activity focused on making a profit for owners? a Non-profit motive b Social goal c Profit motive 62 What is the share of total market sales held by a brand? a Sales volume b Market share c Brand equity 63 Which type of recruitment uses existing staff to fill a vacancy? a Head hunting b Internal recruitment c External recruitment 64 What describes a product sold via the internet and apps? a E-business b E-commerce c Online marketing 65 What is the formal plan for how to market a product? a Marketing plan b Sales plan c Advertising plan 66 Which term means assessing what customers want before product design? a Finance orientation b Product orientation c Market orientation 67 A questionnaire is a set of what for data collection? a Questions b Programs c Products 68 What is the value of a business's assets minus liabilities? a Net worth b Gross value c Equity only 69 Which term means the time-lapse between paying and receiving cash? a Cash flow cycle b Revenue cycle c Payment cycle 70 What is the main aim of a liquidity ratio? a Increase assets b Grow sales c Pay short-term debts 71 Which term means a group of people with a common interest in a project? a Auditors b Shareholders c Stakeholders 72 What term is used for 'the next best alternative given up'? a Opportunity value b Opportunity cost c Replacement cost 73 Which sector includes buying raw materials from nature? a Secondary sector b Primary sector c Tertiary sector 74 What describes a business with unlimited liability risk? a Sole trader (unlimited liability) b Public corporation c Limited liability company 75 Which term means a group with direct interest in a business? a Stakeholder b Employee c Customer 76 What is the term for the maximum number of subordinates under a manager? a Span of control b Chain of command c Matrix width 77 Which financial document shows revenue and costs over a period? a Cash flow statement b Income statement c Balance sheet 78 What describes a business that sells shares publicly? a Private limited company b Public limited company c Sole trader 79 What does Kaizen mean in production? a Batching b Continuous improvement c Just in time 80 Which term refers to a non-current asset like land or buildings? a Non-current asset b Intangible asset c Current asset

Business definitions

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Business definitionsOnline version

by Cindy Chege

What is revenue in a business?

market share means?

What is a sole trader?

Define cash flow forecast.

What are fixed costs?

What does market research do?

What is Kaizen in operations?

What is economic recession?

What are current assets?

What is a dividend?

What is the term for the value of a country's output in a year?

Inflation is the general rise in what?

Which market is large-scale, broad consumer reach?

A market segment is a sub-group with similar what?

What describes the process of gathering data about a market?

The four Ps of marketing are product, price, place and what?

Brand loyalty means customers repeatedly buy the same what?

What term describes the total money received from sales minus costs?

A cash flow forecast estimates future what?

What is the balance between exports and imports called?

Which policy aims to increase supply and efficiency?

External costs are paid by whom?

What is a liability that must be repaid within a year?

Depreciation reflects the fall in value of what?

Which pricing strategy lowers price to enter a market?

What is the term for the cost of producing or buying goods sold?

Which production method minimizes inventory by timing?

Backward or forward are types of what integration?

Which type of business has separate legal status from owners?

What is the file of assets and liabilities at a moment called?

What term describes a product's stage after growth but before decline?

Which budget plans marketing spending for a period?

What is the process of promoting a product to the target audience?

What is the term for a business owned by one person?

Which factor of production includes land and resources?

What describes payments to shareholders from profits?

A focus group is a group used for what?

What term describes a business activity focused on services?

Which is a non-current asset lasting more than one year?

Which leadership style involves democratic decision-making?

What is the name of the process of giving a subordinate authority?

What is the term for the price-related resistance to price changes?

Which term describes a business that operates in multiple countries?

What is the difference between revenue and profit called?

What type of research uses data already collected by others?

Which market term means customers buy for personal use, not resale?

What is the term for a product’s life cycle stage that extends sales?

Which cost varies with output level?

What is the difference between total costs and revenue at break-even?

Which document lists rights and duties in a job?

What describes a product’s image in the market?

What is a business with a social aim plus profit reinvestment?

Which pricing method adds a profit margin to cost?

What is the cash balance at period end called?

What is product distribution channel?

What is a company-owned yet publicly traded entity called?

Which term means cost that does not vary with output?

What is the process of guiding and directing organizational members?

What is a business plan for the marketing mix called?

Which term is a non-zero-sum group interested in performance?

What describes a business activity focused on making a profit for owners?