9609 Cambridge A Level
Business Complete
Glossary Questions and
Answers Updated 2026
ABgoodB-BAnswerBABphysicalBproduct
ABserviceB-BAnswerBAnBintangibleBitem
ABproductB-BAnswerBMoreBgeneralBtermBwhichBincludesBgoodsBandBservices
GrossBDomesticBProductB(GDP)B-
BAnswerBMeasuresBtheBtotalBvalueBofBtheBproductionBofBanBeconomyB(that'sBallBaBc
ountry'sBbusinesses)BoverBaBperiodBofBtime,BnormallyBoneByear.
MissionBstatementB-
BAnswerBSetsBoutBaBbusiness'sBoverallBpurposeBtoBdirectBandBstimulateBtheBentireBor
ganisation
ObjectivesB-BAnswerBMedium-BtoBlong-
termBgoalsBestablishedBtoBcoordinateBtheBbusiness
CashBflowB-
BAnswerBTheBamountBofBmoneyBmovingBintoBandBoutBofBaBbusinessBoverBaBperiodB
ofBtime
DiversificationB-
BAnswerBObjectiveBwhereBaBfirmBproducesBanBincreasedBrangeBofBunrelatedBgoodsBa
ndBservices
,StakeholdersB-
BAnswerBIndividualsBorBgroupsB(suchBasBemployees,BcustomersBandBlocalBresidents)B
whoBhaveBanBinterestBinBaBbusiness
RevenuesB-
BAnswerBEarningsBorBincomeBgeneratedBbyBaBfirmBasBaBresultBofBitsBtradingBactivitie
s
ProfitB-
BAnswerBTheBsurplusBofBtotalBrevenueBoverBtotalBcostBforBaBbusinessBoverBaBtrading
Bperiod
FixedBcostsB-
BAnswerBCostsBthatBdoBnotBalterBwhenBtheBbusinessBaltersBitsBlevelBofBoutput.BExa
mplesBincludeBrentBandBrates.
VariableBcostsB-
BAnswerBAlterBdirectlyBwithBtheBbusiness'sBlevelBofBoutput,Be.g.BfuelBcosts
TotalBcostsB-BAnswerBFixedBcostsBandBvariableBcostsBaddedBtogether
AverageBcostsB-
BAnswerBTotalBcostsBofBproductionBdividedBbyBtheBlevelBofBproductionBorBoutputBtoB
giveBtheBcostBofBaBsingleBunitBofBoutput
SoleBtraderB-
BAnswerBABbusinessBthatBisBownedBandBmanagedBbyBoneBpersonBbutBitBmayBemplo
yBotherBpeople
UnlimitedBliabilityB-
BAnswerBOccursBwhenBanBindividualBorBgroupBofBindividualsBisBresponsibleBforBallBth
eBactionsBofBtheirBbusiness.BWithBsoleBtraders,BthereBisBnoBdistinctionBinBlawBbetwee
,nBtheBindividualBandBtheBbusinessBsoBtheyBcouldBloseBtheirBpersonalBassetsBifBtheBb
usinessBhasBfinancialBproblems
CompanyB-
BAnswerBABbusinessBorganisationBthatBhasBitsBownBlegalBidentityBandBthatBhasBlimite
dBliability
IncorporationB-
BAnswerBTheBprocessBofBestablishingBaBbusinessBasBaBseparateBlegalBidentityBthatBall
owsBitBtoBbenefitBfromBlimitedBliability
ShareholderB-BAnswerBInvestorBinBandBoneBofBtheBownersBofBaBcompany
LimitedBliabilityB-
BAnswerBInBtheBeventBofBfinancialBdifficulties,BtheBpersonalBbelongingsBofBshareholde
rsBareBsafe
DividendsB-
BAnswerBABshareBinBtheBprofitBofBaBcompanyBthatBareBdistributedBtoBtheBholdersBof
BcertainBtypesBofBcompanyBshares
MarketBcapitalisationB-
BAnswerBTotalBvalueBofBtheBissuedBsharesBofBaBpublicBlimitedBcompany
TakeoverBorBacquisitionB-
BAnswerBOccursBwhenBoneBcompanyBacquiresBcontrolBofBanotherBbyBbuyingBmoreBth
anB50%BofBitsBshareBcapital
PrivatisationB-
BAnswerBTheBprocessBunderBwhichBtheBstateBsellsBbusinessesBthatBitBhasBpreviouslyB
ownedBandBmanagedBtoBprivateBindividualsBandBbusinesses.
, MarketBconditionsB-
BAnswerBRefersBtoBnumberBofBfeaturesBofBaBmarketBsuchBasBtheBlevelBofBsales,Bthe
BrateBatBwhichBtheyBareBchangingBandBtheBnumberBandBstrengthBofBcompetitors
DemandB-
BAnswerBABtermBusedBbyBeconomistsBtoBindicateBtheBamountBofBaBparticularBgoodB
orBserviceBthatBconsumersBorBorganisationsBwant,BandBcanBafford,BtoBbuyBatBgivenBp
rices.BItBshowsBtheBlevelBofBsalesBthatBbusinessesBcanBexpect.
InterestBratesB-BAnswerBTheBpriceBofBborrowedBmoney
FairBtradeB-
BAnswerBABsocialBmovementBthatBexistsBtoBpromoteBimprovedBtradingBtermsBandBlivi
ngBconditionsBforBproducersBofBproductsBinBless-developedBcountries
SustainableBproductionB-
BAnswerBOccursBwhenBtheBsupplyBofBaBproductBdoesBnotBimposeBcostsBonBfutureBg
enerationsBbyBforBexample,BdepletingBnon-renewableBresources
LeadershipB-
BAnswerBInvolvesBruling,BguidingBandBinspiringBotherBpeopleBwithinBtheBorganizationB
inBpursuitBofBagreedBobjectives
ManagementB-
BAnswerBInvolvesBplanning,Borganising,BdirectingBandBcontrollingBallBorBpartBofBaBbusi
ness
AuthorityB-BAnswerBTheBpowerBorBabilityBtoBcarryBthroughBanBaction
DelegationB-BAnswerBPassingBauthorityBdownBtheBorganizationBhierarchy.
Business Complete
Glossary Questions and
Answers Updated 2026
ABgoodB-BAnswerBABphysicalBproduct
ABserviceB-BAnswerBAnBintangibleBitem
ABproductB-BAnswerBMoreBgeneralBtermBwhichBincludesBgoodsBandBservices
GrossBDomesticBProductB(GDP)B-
BAnswerBMeasuresBtheBtotalBvalueBofBtheBproductionBofBanBeconomyB(that'sBallBaBc
ountry'sBbusinesses)BoverBaBperiodBofBtime,BnormallyBoneByear.
MissionBstatementB-
BAnswerBSetsBoutBaBbusiness'sBoverallBpurposeBtoBdirectBandBstimulateBtheBentireBor
ganisation
ObjectivesB-BAnswerBMedium-BtoBlong-
termBgoalsBestablishedBtoBcoordinateBtheBbusiness
CashBflowB-
BAnswerBTheBamountBofBmoneyBmovingBintoBandBoutBofBaBbusinessBoverBaBperiodB
ofBtime
DiversificationB-
BAnswerBObjectiveBwhereBaBfirmBproducesBanBincreasedBrangeBofBunrelatedBgoodsBa
ndBservices
,StakeholdersB-
BAnswerBIndividualsBorBgroupsB(suchBasBemployees,BcustomersBandBlocalBresidents)B
whoBhaveBanBinterestBinBaBbusiness
RevenuesB-
BAnswerBEarningsBorBincomeBgeneratedBbyBaBfirmBasBaBresultBofBitsBtradingBactivitie
s
ProfitB-
BAnswerBTheBsurplusBofBtotalBrevenueBoverBtotalBcostBforBaBbusinessBoverBaBtrading
Bperiod
FixedBcostsB-
BAnswerBCostsBthatBdoBnotBalterBwhenBtheBbusinessBaltersBitsBlevelBofBoutput.BExa
mplesBincludeBrentBandBrates.
VariableBcostsB-
BAnswerBAlterBdirectlyBwithBtheBbusiness'sBlevelBofBoutput,Be.g.BfuelBcosts
TotalBcostsB-BAnswerBFixedBcostsBandBvariableBcostsBaddedBtogether
AverageBcostsB-
BAnswerBTotalBcostsBofBproductionBdividedBbyBtheBlevelBofBproductionBorBoutputBtoB
giveBtheBcostBofBaBsingleBunitBofBoutput
SoleBtraderB-
BAnswerBABbusinessBthatBisBownedBandBmanagedBbyBoneBpersonBbutBitBmayBemplo
yBotherBpeople
UnlimitedBliabilityB-
BAnswerBOccursBwhenBanBindividualBorBgroupBofBindividualsBisBresponsibleBforBallBth
eBactionsBofBtheirBbusiness.BWithBsoleBtraders,BthereBisBnoBdistinctionBinBlawBbetwee
,nBtheBindividualBandBtheBbusinessBsoBtheyBcouldBloseBtheirBpersonalBassetsBifBtheBb
usinessBhasBfinancialBproblems
CompanyB-
BAnswerBABbusinessBorganisationBthatBhasBitsBownBlegalBidentityBandBthatBhasBlimite
dBliability
IncorporationB-
BAnswerBTheBprocessBofBestablishingBaBbusinessBasBaBseparateBlegalBidentityBthatBall
owsBitBtoBbenefitBfromBlimitedBliability
ShareholderB-BAnswerBInvestorBinBandBoneBofBtheBownersBofBaBcompany
LimitedBliabilityB-
BAnswerBInBtheBeventBofBfinancialBdifficulties,BtheBpersonalBbelongingsBofBshareholde
rsBareBsafe
DividendsB-
BAnswerBABshareBinBtheBprofitBofBaBcompanyBthatBareBdistributedBtoBtheBholdersBof
BcertainBtypesBofBcompanyBshares
MarketBcapitalisationB-
BAnswerBTotalBvalueBofBtheBissuedBsharesBofBaBpublicBlimitedBcompany
TakeoverBorBacquisitionB-
BAnswerBOccursBwhenBoneBcompanyBacquiresBcontrolBofBanotherBbyBbuyingBmoreBth
anB50%BofBitsBshareBcapital
PrivatisationB-
BAnswerBTheBprocessBunderBwhichBtheBstateBsellsBbusinessesBthatBitBhasBpreviouslyB
ownedBandBmanagedBtoBprivateBindividualsBandBbusinesses.
, MarketBconditionsB-
BAnswerBRefersBtoBnumberBofBfeaturesBofBaBmarketBsuchBasBtheBlevelBofBsales,Bthe
BrateBatBwhichBtheyBareBchangingBandBtheBnumberBandBstrengthBofBcompetitors
DemandB-
BAnswerBABtermBusedBbyBeconomistsBtoBindicateBtheBamountBofBaBparticularBgoodB
orBserviceBthatBconsumersBorBorganisationsBwant,BandBcanBafford,BtoBbuyBatBgivenBp
rices.BItBshowsBtheBlevelBofBsalesBthatBbusinessesBcanBexpect.
InterestBratesB-BAnswerBTheBpriceBofBborrowedBmoney
FairBtradeB-
BAnswerBABsocialBmovementBthatBexistsBtoBpromoteBimprovedBtradingBtermsBandBlivi
ngBconditionsBforBproducersBofBproductsBinBless-developedBcountries
SustainableBproductionB-
BAnswerBOccursBwhenBtheBsupplyBofBaBproductBdoesBnotBimposeBcostsBonBfutureBg
enerationsBbyBforBexample,BdepletingBnon-renewableBresources
LeadershipB-
BAnswerBInvolvesBruling,BguidingBandBinspiringBotherBpeopleBwithinBtheBorganizationB
inBpursuitBofBagreedBobjectives
ManagementB-
BAnswerBInvolvesBplanning,Borganising,BdirectingBandBcontrollingBallBorBpartBofBaBbusi
ness
AuthorityB-BAnswerBTheBpowerBorBabilityBtoBcarryBthroughBanBaction
DelegationB-BAnswerBPassingBauthorityBdownBtheBorganizationBhierarchy.