Business Studies

3. Economy Has both a public and a private sector
6. Any person or group with direct interest in the performance and activities of a business
8. The next best alternative given up by choosing another item
11. The resources need to produce goods or services. There are four and are in limited supply
12. A good or service essential for living
14. The difference between inflow and outflow of cash
15. Manufactures goods using the raw materials provided by the primary sector
17. Results from their being unlimited wants but limited resources to provide the goods and services to satisfy these wants. This creates scarcity
19. The money invested into a business by the owners
20. The cash inflows and outflows of a business over a period of time
24. When a business takes over or merges with another business
25. The surplus after total costs have been subtracted from the sales revenue
26. When one business buys out the owners of another business which then becomes part of the predator business
28. When owners of two companies agree to join together their firms to make one business
29. The finance needed by a new business to pay for essential fixed and current assets before it can start trading

1. The lack of sufficient products to satisfy the total wants of the population
2. A good or service which people would like to have but which is not essential for living.
4. Factors that lead to a reduction in average costs as a business increases in size
5. Giving authority to a subordinate to perform particular tasks. The final responsibility, however, remains in the hands of the manager
7. Have direct authority over subordinates in their department. They are able to take decisions in their departmental area
9. Business which controls all of the market for a product
10. Number of subordinates working directly under a manager
13. The difference between the selling price of a product or service and the cost of bought in materials and components
16. When the production process is split up into different tasks and each worker performs one of these tasks
18. Cash Balance Amount of cash held by the business at the end of each month. This becomes the next month’s opening cash balance
21. No government control over factors of production
22. When one firm merges with or takes over another one in the same industry at the same stage of production
23. The structure in an organization which allows instructions to be passed down from senior management to lower levels of management
27. Combine factors of production to make products which satisfy the people’s wants