The Business pi answer key

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1 d) 2 c) 3 a) 4 b) 5 g) 6 h) 7 e) 8 f)
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1 Students could consider whether or not she should expand the business. 
Could she apply for a loan? If so, for how much? Elicit feedback. 
Encourage students to consider Ingrid’s options and to justify their ideas.
2 Some students may feel that she is not a true entrepreneur, as she 
discovered the business in an almost accidental manner. However, she 
does have some attributes of being an entrepreneur.
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housework, walking the dog, shopping, cleaning the car, gardening, the 
ironing, organizing weddings, looking after small children and babies, etc.
Advantages include: you can work in an area which appeals to you, i.e. 
follow your ‘dream’; you do not have to answer to anyone; you can choose 
when and where you work; you can decide on the amount of profi t you keep 
through paying yourself a bonus. 
The disadvantages include: you have the responsibility of whether the 
company is a success or a failure; you may fi nd that a work-life balance is 
hard to maintain; you have to deal with tax, employment, property issues; 
you need to worry about promotion of product and service. 
6.2 Vocabulary
 Types of companies
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staff training, quality, low prices, great leader, always developing new 
products, etc.
1 False. A small profi t is sometimes acceptable. Companies have to grow.
2 False. Companies do not have to share profi ts, although many do.
3 True. Although many companies simply continue to do what they do 
well.
4 It depends. Some do but some don’t and are still successful.
5 False.
6 It depends. Some do.
7 False, but there is more pressure on companies to take care of the 
environment.
8 False. Only some companies have mission statements.
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1 accountants
2 share
3 capital
4 liability
5 shareholders
6 agreement
7 investment
8 accounts
9 shares
10 capital
11 fall
12 shareholder
13 Meeting
14 trading
15 boss
16 profi t
17 debts