1.1 Bread and butter topics

Question 1

Good

Answer 1

Tangible items (that can be purchased and used)

Question 2

Services

Answer 2

Intangible items (that can be accessed for a period of time)

Question 3

Needs

Answer 3

Necessity for survival e.g. shelter, food, water, clothes.

Question 4

Want

Answer 4

Desire that is not necessary for survival e.g. designer and branded items.

Question 5

Factors of production

Answer 5

Land: raw materials procured, land owned and location used.
Labour: those working for the business, mentally and/or physically.
Capital: machinery and equipment used in production.
Entreprise: ability for entrepreneur to control/utilise other factors and take advantage of new business opportunities.

Question 6

Opportunity cost

Answer 6

Making a decision that leads to missing out on the next best alternative.

Question 7

Business sectors

Answer 7

Primary: farmer, miner, forestry, fishing, hunting.
Secondary: construction, manufacturers, production.
Tertiary: hairdressers, hospitals, banks, advisors.

Question 8

Characteristics of entrepreneur.

Answer 8

• Innovative
• Organised
• Risk-taking
• Hard-working

Question 9

Objectives for (becoming) entrepreneurs.

Answer 9

• Be your own boss.
• Flexible working hours.
• Make own/more money/profit.
• Pursue personal interest/hobby
• Satisfy a gap in the market
• Escape dissatisfaction with current job.