1- Business in the real world

Question 1

What are goods and services?

Answer 1

Goods are physical items eg, books or furniture

Services are actions preformed by other people to aid a customer eg, barbers and plumbers provide services

Question 2

What are needs and wants?

Answer 2

needs - Something you have to have survive

Wants - Something you dont need to survive but is nice to have.

Question 3

What are the diffrent the sectors?

Answer 3

The primary sector
The secondary sector
The tertiary sector

Question 4

What does the primary sector produce?

Answer 4

Raw materials , any natural resources which are used to make good and services.

Question 5

What does the secondary sector produce?

Answer 5

They manufacture goods.

Question 6

What are the four factors of production?

Answer 6

Land , Labour , Capital and entiprise

Question 7

Whats oppourtunity cost?

Answer 7

The benefit thats given up in order to do something else - its the cost of the choice thats made. Its the idea thatmoney or time spent doing one thing is likely to mean missing out

Question 8

What are the advantages of being a sole trader?

Answer 8

• Easy to set up
• you get to be your own boss
• you decide what happens to any profit

Question 9

What are the disadvantages of being a sole trader?

Answer 9

• Long hours and little holiday
• Unlimited liablity
• Unincorporated
• Hard to get a loan from banks as they see sole traders as risky

Question 10

What are the advantages of of partnerships?

Answer 10

• More ideas, skills and epertise
• Share the work
• More captital

Question 11

Whata are the disadvantages of partnerships?

Answer 11

• Each partner is legally responsible for what the other partners do
• Unlimited liability
• More owners means more disagreements
• Profits are shared between the partners