Business words quiz

By Mary Adorjan

Which is the simplest?

Setting up as a . is the simplest and quickest way to start a business. a) Public limited company b) Partnership c) Sole trader

Which is the simplest?

Answer: Sole trader

Which is the most likely?

If two or three people own a business and also share management responsibilities, their form of business is probably a a) Public Limited Company b) Partnership

Which is the most likely?

Answer: Partnership

Which one?
The difference between the revenues and the expenses of a business is called (if it is a positive amount). a) Income b) Profit c) Loss d) Cost

Which one?
Answer: Profit

What is this place?

You can buy and sell shares on the ..

What is this place?

Answer: Stock-exchange

Interest or dividend?
You had bought some shares of a very successful company. At the end of the year the company pays a) Dividend b) Interest

Interest or dividend?
Answer: Dividend

The price of a loan

You asked for a loan from a bank. You received the loan. You have to pay back the amount of the loan and some

The price of a loan

Answer: Interest

Good news
You put your savings in a bank. You did not touch it for a year. Now the bank pays you .

Good news
Answer: Interest

So whats the difference between

dividend and interest? Answer: Dividend is connected to shares of a company. Interest is connected to bank loans or savings.

Mortgage loan
Which is a possible collateral (=guarantee) for your mortgage loan? a) Your house b) Your sister c) Your credit card

Mortgage loan
Answer: Hopefully your house!

Loan words
to borrow / to lend / to owe
She ed EUR 2000 from her parents. The bank refused to the money to us. He still s his father EUR 3000.

debt (C) I need to pay off all my debts. He had run up credit card
debts.

debt (U) He died heavily in debt. bad debt a debt that is unlinkely to be repaid collateral We had put our house up as collateral for our bank
loan.(also: connected with sth/sb else collateral damage)

The owners have unlimited liability.

a) This means that the owners are personally responsible for any debt or damages the company caused. b) This means that the owners are liable only up to their founding capital for any debt or damages the company caused.

The owners have unlimited liability.

Answer: a)

Responsible = liable (adj.) Responsibility = liability (noun)

Investor? Investment? Investigator?

If you start your business your first .s might be your friends or family members.

Investor? Investment? Investigator?

Answer: investors

Franchise
Opening a franchise is usually less risky / more risky than setting up as an independent retailer. The franchisee is adopting a proven business model and selling a well-known product in a new local branch.

Franchise
Opening a franchise is usually less risky /more risky than setting up as an independent retailer. The franchisee is adopting a proven business model and selling a well-known product in a new local branch.

Price of the product or service Customer willingness to pay (WTP)

When is a customer willing to pay a high price? Low demand/ big supply OR high demand / short supply?
very high quality special treatment of costumer established brand

Price of the product or service Customer willingness to pay (WTP)

When is a customer willing to pay a high price? Low demand/ big supply OR high demand / short supply?
very high quality special treatment of costumer established brand

These products are all

established s.

These products are all

established brands

In these countries there are Microsofts .

a) Parent companies b) Subsidiaries c) Family companies

In these countries there are Microsofts subsidiaries.

a) Parent companies b) Subsidiaries c) Family companies

These two companies are .

These two companies are competitors.

What will happen to the company?

If the cost of production is high, but revenues are small

What will happen to the company?

If the cost of production is high, but revenues are small Answer: It will probably go bankrupt.