CAMBRIDGE INTERNATIONAL AS & A LEVEL BUSINESS
Language worksheet 1.1 answers
Enterprise terminology
Structured glossary
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Key term
Definition
Entrepreneur
An individual who has the idea for a new business, starts it up and carries most of
the risks but benefits from the rewards.
Adding value
Increasing the difference between the cost of bought-in inputs (materials) and the
selling price of the finished goods.
Consumer services
The non-tangible products sold to consumers that are not intended for resale.
These include hotel accommodation, insurance services and train journeys.
Factors of production
The resources needed by business to produce goods or services.
Opportunity cost
The next most desired option that is given up.
Customer
An individual consumer or organisation that purchases goods or services
from a business.
Added value
The difference between the cost of purchasing bought-in inputs (materials) and the
selling price of the finished goods.
Intrapreneur
A business employee who takes direct responsibility for turning an idea into a
profitable new product or business venture.
Consumer
An individual who purchases goods and services for personal use.
Capital goods
The physical goods used by industry to aid in the production of other goods and
services, such as machines and commercial vehicles.
Multinational business
A business organisation that has its headquarters in one country, but with
operating branches, factories and assembly plants in other countries.
Consumer goods
The physical and tangible goods sold to consumers – that are not intended for
resale. These include durable consumer goods, such as cars and washing machines,
and non-durable consumer goods, such as food, drinks and sweets that can be
used only once.
Business plan
A written document that describes a business, its objectives, its strategies, the
market it is in and its financial forecasts.
Enterprise
The action of showing initiative to take the risk to set up a business.
Cambridge International AS & A Level Business – Chalk & Malpas © Cambridge University Press 2021
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