1.1 - the purpose and nature of business

Question 1

what is a good?

Answer 1

a physical product

Question 2

what is a service?

Answer 2

an intangible product

Question 3

what is a customer?

Answer 3

someone who buys a product from a business

Question 4

what is a consumer?

Answer 4

someone who uses goods and services produced by a business

Question 5

what is an entrepreneur?

Answer 5

someone who will take risks to start a business

Question 6

what is an entrepreneurship?

Answer 6

the ability to be an entrepreneur

Question 7

what is an enterprise?

Answer 7

another word for a business

Question 8

what is a social enterprise?

Answer 8

a business that is set up to help society

Question 9

what are resources?

Answer 9

the inputs that businesses use to provide their goods or services

Question 10

what is interest?

Answer 10

the money paid by banks as a reward to attract people

Question 11

what is inflation?

Answer 11

the rate at which prices are increased

Question 12

what is gross domestic product?

Answer 12

it measures all the income earned in a country’s economy in a year

Question 13

what is a successful business?

Answer 13

when they satisfy customers wants and needs

Question 14

5 advantages of an entrepreneur

Answer 14

• be their own boss
• keep all the profits of the business
• interest or hobby becomes a business
• satisfied for being successful
• time flexibility of working for their own business

Question 15

3 factors of production and what they mean

Answer 15

land - physical site or used site
labour - number of staff
capital - equipment

Question 16

what is opportunity cost?

Answer 16

the sacrifice made for the business

Question 17

characteristics of entrepreneurs

Answer 17

• innovation (good at spotting opportunities)
• risk taker
• hard working / determined
• organised

Question 18

primary sectors

Answer 18

organisation at the first stage of production and use raw material

Question 19

secondary sector

Answer 19

second stage of product , using primary resources and covert them into products

Question 20

tertiary sector

Answer 20

final stage , organisations that provide services

Question 21

quaternary sector

Answer 21

research and development - STEM

Question 22

technology change

Answer 22

creates new products and market

Question 23

economic change

Answer 23

interest rate change,inflation and gdp change

Question 24

interest rates

Answer 24

change in cost of borrowing money form banks

Question 25

legal change

Answer 25

new laws and regulations can effect costs of a business

Question 26

environmental expectations

Answer 26

customers and consumers can effect the business depending on how it affects the environment