Business Definitions

1. That part of sales revenue which can be put towards paying the fixed costs of a business. Contribution= selling price- variable cost per unit. (12)
6. Having original ideas. (8)
7. A fixed amount of money borrowed for a fixed period at a fixed interest rate. The loan is paid back in regular instalments until the total amount plus interest is repaid. Loans are medium to long-term sources of finance. (4)
8. Because resources are scarce, everyone has to choose what they want most, in light of the price they will have to pay for it. Choice will be constrained by the level of income- the amount that the consumer can spend. (6)

2. Guide rather than dictate, consulting widely and encouraging everyone to participate in the decision-making process. (10, 7)
3. Using the right strategy to help employees work more efficiently. By meeting the needs of the business situation and the employees, leaders can increase commitment and so encourage hard work. (10)
4. Is a sustained rise in the general level of prices for goods and services. If incomes stay the same, purchasing power will fall. Inflation can be measured in different ways. (9)
5. Measured either by the total value or the total volume of goods sold in the market. (6, 4)
9. Money leaving a business. This includes fixed and variable costs as well as cash withdrawals by the business owner(s). (4, 8)
10. Money earned by a business (7)

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