AS Level - Unit 1 Key Terms

1. Define the term ‘Entrepreneur’.

• Someone who provides capital to businesses.
• Someone who takes the financial risk of starting and managing a new venture.
• A business investor with no active role.
• A manager responsible for daily operations.

2. What is an ‘Intrapreneur’?

• A shareholder who invests in startups.
• An employee who takes responsibility for developing new business ideas within a company.
• A government advisor on business regulations.
• A financial consultant for entrepreneurs.

3. What is ‘Opportunity Cost’?

• The total cost of starting a business.
• The cost of producing goods and services.
• The benefit of the next best alternative forgone when making a choice.
• The amount lost due to bad business decisions.

4. What are ‘Consumer Goods’?

• Goods that are used in production.
• Non-tangible products sold to consumers.
• Physical and tangible products sold to the general public.
• Services offered to customers.

5. What is the definition of a ‘Stakeholder’?

• An individual or group affected by and interested in business decisions.
• A person who purchases shares in a company.
• A company that holds investments in multiple firms.
• A financial regulator overseeing businesses.

6. What is a ‘Factor of Production’?

• The cost of goods sold.
• The financial investment needed to start a business.
• Resources required by businesses to produce goods and services.
• The revenue earned from product sales.

7. What does ‘Adding Value’ mean?

• Increasing the selling price beyond the cost of bought-in materials.
• Reducing production costs.
• Increasing customer demand through promotions.
• Maximizing stock availability.

8. What does the term ‘Branding’ refer to?

• A pricing strategy to increase sales.
• The process of differentiating a product from competitors using names, logos, and designs.
• The legal registration of a company name.
• A short-term advertising campaign.

9. What is ‘Enterprise’ in a business context?

• The process of running a company’s finances.
• The action of taking initiative and risks to start a business.
• A department that manages employees.
• A multinational corporation.

10. What is a ‘Multinational Business (MNC)’?

• A business that sells only within its home country.
• A company that operates in multiple countries while having its headquarters in one.
• A government agency promoting trade.
• A company that exports products but does not operate abroad.