1.1 Role of Business

Question 1

Factor Inputs

Answer 1

Land, Labour, Capital, Enterprise

Question 2

Chain of production

Answer 2

Primary -> Secondary -> Tertiary -> Consumers -> Quaternary

Question 3

CUEGIS

Answer 3

Change, Culture, Ethics, Globalization, Innovation, Strategy

Question 4

Process setting up a business

Answer 4

Organise the basics
Research the market
Planning the business
Establishing legal requirements
Raising the finance 
Testing the market

Question 5

Business Plan

Answer 5

It is a written document that describes a company’s business activities, their short and long term objectives and how these objectives will be achieved. Should be regularly reviewed.
(Operations, The idea, aims & objectives, The organisation, Marketing, Finance, Human Resources. )

Question 6

Problems that a new business may face

Answer 6

Competition, No customers, Uncertainty about the future, Financial management

Question 7

Intrapreneur

Answer 7

An individual employed by a large organisation who demonstrates entrepreneurial thinking in the development of new products or services.

Question 8

Industrialisation & Deindustrialisation

Answer 8

a shift from primary sector production into secondary sector production.

a shift from secondary sector production into tertiary sector production.

Question 9

Causes for change in economic structure

Answer 9

Higher household incomes
More leisure time
Greater focus on customer service
Increasing reliance on support services
More skilled workers
Primary production yields low value added
(Remember at least 2-3)

Question 10

Impact on business when there is change in economic structure

Answer 10

Higher demand
Higher value added
Opportunities in the service sector
After-sales service can be a source of competitive advantage
Reliance on the services of other