Test Bank – AI in Business: Creating Value
Responsibly, 1st Release
Business - answer-an organisation that provides goods or services
Market - answer-where buyers (or customers) and sellers (businesses) meet to
exchange goods and services
Sole Trader - answer-a business owned by only 1 person who has unlimited liability
Private limited company - answer-A business owned by shareholders who have limited
liability, but shares in the business CAN NOT be SOLD on the stock market
Franchise - answer-The right given by one business to another to sell goods or services
using its name
Franchisee - answer-A business that agrees to manufacture, distribute or provide a
branded product under license by a franchisor
Franchisor - answer-The business that gives franchisees the right to sell its products in
return for a fixed sum of money or royalty payment
Unlimited Liability - answer-A legal obligation on the owner of a business to settle all
debts of the business. In law, there is no distinction between what the business and the
owner owns and owes
Limited Liability - answer-When shareholders of a company are not personally liable for
debts of the company: the most they can lose is the value of their investment in the
shares of the company
Start up Fee - answer-The amount of money that the Franchisee pays to the Franchisor
to use its name
Shareholder - answer-The owner of a company entitled to a share of the profits each
year
Customer Needs - answer-The wants and desires of the customer
Market Research - answer-The process of gaining information about customers,
competitors and market trends through collecting primary and secondary data
Primary Research - answer-The gathering of new information, which has not been
collected before
, Secondary Research - answer-The collecting of information that has already been
gathered by someone else and that already exists
Quantitative Data - answer-Data which can be expressed as numbers and can be
statistically analysed
Qualitative Data - answer-Information about opinions, judgements and attitudes
Market Segmentation - answer-a part of the market that contains a group of buyers with
similar buying habits
Added Value - answer-The increased worth that a business creates for a product.
PRICE CHARGED - COST FROM SUPPLIERS
Market Map - answer-A diagram that shows the range of possible positions for 2
features of a product. E.g Low to high price and low to high quality
Enterprise - answer-A willingness by an individual or business to take risks, show
initiative and undertake new ventures
Entrepreneur - answer-A person who owns and runs their own business and takes risks
Mindmap - answer-A diagram that is used to record words and ideas connected to a
central word
Creative Thinking - answer-Creating an idea that has not been done before (new and
unique) and developing a competitive advantage as a result
Competitive Advantage - answer-An advantage a business has that enables it to
perform better than its rival like; better products, quality, customer service or creating a
totally unique product
Blue Sky Thinking - answer-A technique of thinking where participants are encouraged
to think of as many ideas as possible about an issue or problem
Lateral Thinking - answer-Thinking differently to try and find new and unexpected ideas,
such as by using DE BONO'S SIX Thinking Hats
Invention - answer-The discovery of new processes and potential new products,
typically after a period of research
Innovation - answer-The process of transforming inventions into products that can be
sold to consumers
Responsibly, 1st Release
Business - answer-an organisation that provides goods or services
Market - answer-where buyers (or customers) and sellers (businesses) meet to
exchange goods and services
Sole Trader - answer-a business owned by only 1 person who has unlimited liability
Private limited company - answer-A business owned by shareholders who have limited
liability, but shares in the business CAN NOT be SOLD on the stock market
Franchise - answer-The right given by one business to another to sell goods or services
using its name
Franchisee - answer-A business that agrees to manufacture, distribute or provide a
branded product under license by a franchisor
Franchisor - answer-The business that gives franchisees the right to sell its products in
return for a fixed sum of money or royalty payment
Unlimited Liability - answer-A legal obligation on the owner of a business to settle all
debts of the business. In law, there is no distinction between what the business and the
owner owns and owes
Limited Liability - answer-When shareholders of a company are not personally liable for
debts of the company: the most they can lose is the value of their investment in the
shares of the company
Start up Fee - answer-The amount of money that the Franchisee pays to the Franchisor
to use its name
Shareholder - answer-The owner of a company entitled to a share of the profits each
year
Customer Needs - answer-The wants and desires of the customer
Market Research - answer-The process of gaining information about customers,
competitors and market trends through collecting primary and secondary data
Primary Research - answer-The gathering of new information, which has not been
collected before
, Secondary Research - answer-The collecting of information that has already been
gathered by someone else and that already exists
Quantitative Data - answer-Data which can be expressed as numbers and can be
statistically analysed
Qualitative Data - answer-Information about opinions, judgements and attitudes
Market Segmentation - answer-a part of the market that contains a group of buyers with
similar buying habits
Added Value - answer-The increased worth that a business creates for a product.
PRICE CHARGED - COST FROM SUPPLIERS
Market Map - answer-A diagram that shows the range of possible positions for 2
features of a product. E.g Low to high price and low to high quality
Enterprise - answer-A willingness by an individual or business to take risks, show
initiative and undertake new ventures
Entrepreneur - answer-A person who owns and runs their own business and takes risks
Mindmap - answer-A diagram that is used to record words and ideas connected to a
central word
Creative Thinking - answer-Creating an idea that has not been done before (new and
unique) and developing a competitive advantage as a result
Competitive Advantage - answer-An advantage a business has that enables it to
perform better than its rival like; better products, quality, customer service or creating a
totally unique product
Blue Sky Thinking - answer-A technique of thinking where participants are encouraged
to think of as many ideas as possible about an issue or problem
Lateral Thinking - answer-Thinking differently to try and find new and unexpected ideas,
such as by using DE BONO'S SIX Thinking Hats
Invention - answer-The discovery of new processes and potential new products,
typically after a period of research
Innovation - answer-The process of transforming inventions into products that can be
sold to consumers
