glossary

3. social responsibility when businesses consider the interests of stakeholders, society and the
8. regarded as innovative.
9. a person who sets out to build a successful business in a new field. An entrepreneur’s methods are
13. factors population characteristics that affect customer spending which include: age, ethnicity,
16. refers to rivalry among businesses that try to supply the needs and wants of a market
17. process whereby a company has become a separate legal entity from its owners (shareholders)
18. statement a summary of the income earned and the expenses incurred over a period of trading
19. whether the benefits outweigh the costs

1. involves buying the rights from another business to distribute its products under its name
2. opportunity something an entrepreneur can see as an avenue to success
4. funds contributed by the business owner(s)
5. analysis a detailed examination of the strengths and weaknesses of different alternatives in order to
6. money owing to external sources; e.g. a bank
7. marital status, family size and income
10. when making economic and business decisions
11. the ability to be resourceful and decide, in an independent way, what to do and when to do it
12. refers to the process companies go through to become a separate legal entity from the owner/s
14. the monetary value of a business’s reputation
15. items of value