1.1 The Purpose And Nature Of A Business

Question 1

What is a good?

Answer 1

A tangable item.

Ipad
Book

Question 2

What is a service?

Answer 2

Something that is done

Window cleaner

Question 3

What is a entrepreneur

What are some charatristics they might have?

Answer 3

Someone who takes a risk and starts a business

Hard Working
Resorcefull
Inventive
Organised
Risk Taker

Question 4

Why might you start a business?

Answer 4

Be there own boss
Money
To pursue an interest
Flexiable working hours
For a new start/challenge

Question 5

What is an social enterprise?

Answer 5

A business that is set up to benifit society not to make money

Question 6

What are the factors of production?

Answer 6

Land - the site of where you locate the business
Enterprise - the skills of people involved
Labour - people who work for you
Capital - objects, money, suplys

Question 7

What is oppotunity cost?

Answer 7

Oppotunity cost is what you would of got if you chose the other option.

Eg

A man offers you £10 or £20. The oppotunity cost of taking the £10 is £20 because that was the other offer.

Question 8

What are the different sectors of business?

Answer 8

Primary - this sector is about getting the phycical reasorces (raw materials) and sell them. Eg logging industry

Secondary - this sector manufactors a product from the raw materials which it many buy from primary sector businesses. Eg Car manufactorers

Tertiary - this sector sells the finished product which it may buy from a secondary sector business OR provide a service and use thing like soap/ pens which were made by the secondary sector.

Question 9

What is the business enviroment?

Answer 9

The external factors that effect a business. This is always changing.

Question 10

What are the main factors business enviroment?

Answer 10

Changes in tecnology - New tecnology may make production easier and may oppitunitys to improve your product/ could ruin your product.

Economic changes - Largly changes in interest rates which are set by the Bnk of England

Legal changes - Changes in legeslation like worker rights and equality acts.

Enviromental changes - Many people are not buying products from businesses that arn’t eco- friendly. There may be new laws in the future which prohibit businesses from releasing too much co2 in the future.