Business Studies chapters 1-6

1. It is the difference between the selling price of a product and the cost of bought in materials and components.
4. there are not enough goods to meet the wants of the population
10. Governments selling parts of of whole businesses to private sector firms
12. non-current assets offered as security against borrowing.
13. Governments selling parts of of whole businesses to private sector firms
14. an individual or group which has an interest in a business because they are affected by its activities and decisions.
16. We cannot live without these.
19. Business takes over or merges with another.
21. Skill/risk-taking ability of entrepreneurs.
22. Payments made to shareholders from the profit (after tax) of a company.

2. There is a decline in the importance of the secondary, manufacturing sector of industry in a country.
3. the share holders in a limited liability company which fails only risks losing the amount they have invested in the company and not any of their personal wealth.
5. the production an supply of goods to the final consumer involves activities from primary, secondary and tertiary sector businesses
6. a business system where entrepreneurs buy the right to use the name, logo and product of an existing business.
7. a statement of a specific target to be achieved. It should be SMART.
8. Total income (sales revenue) - total costs
9. an individual who has an idea for a new business and takes the risk for starting it up and managing it
11. physical goods, such as machinery or delivery vehicles that are used by other businesses to help produce other goods and services
15. a business formed by two or more people who will usually share responsibility for running the company.
17. All natural resources
18. a person or organization who owns shares in a limited company.
20. an economy where the resources are owned and controlled by both private and public sectors