1.1 The Nature of Business Activity

Question 1

Defi of a business

Answer 1

Any organisation that uses resources to meet the needs of customers by providing a product or service that they demand

Question 2

What are the 4 factors of production?

Answer 2

Land, labour, capital, enterprise

Question 3

What are the 4 main business functions/processes?

Answer 3

Human resource
Finance & accounts
Marketing
Operations management

Question 4

What are the 3 sectors of industry?

Answer 4

Primary, secondary, tertiary

Question 5

Defi of industrialisation and deindustrialisation

Answer 5

IN: Growing importance of the secondary sector in developing countries
Primary –> Secondary

DE: Reduction of industrial activity in a region
Secondary –> Tertiary

Question 6

Advantages of industrialisation [4]

Answer 6

Increase GDP & standard of living
More jobs
More tax revenue

Question 7

Disadvantages of industrialisation

Answer 7

Huge movement from rural countryside to town –> Depopulation of rural areas, lack of manpower in farms, housing & social problems
Factory pollution

Question 8

Advantages of deindustrialisation

Answer 8

Developed economies, rising income

Question 9

Disadvantages of deindustrialisation

Answer 9

Costly manufacturing