A-level Business Studies Lesson 01

Question 1

GDP (Gross Domestic Product)

Answer 1

GDP is the value of all the goods and services (output) produced in a country

Question 2

Mission

Answer 2

An organisation’s aims or long term intentions, its ultimate purpose

Question 3

Corporate culture

Answer 3

Corporate culture refers to the values, beliefs, and behaviours that determine how a company’s employees and management interact, perform, and handle business transactions

Question 4

Mission statement

Answer 4

A qualitative statement of an organisation’s overall aims that uses language intended to motivate employees and convince customers, suppliers and those outside the firm of its sincerity and commitment

Question 5

Business values

Answer 5

Core values are what support the vision, shape the culture and reflect what the organisation values. They are the essence of the organisation’s identity – the principles, beliefs or philosophy of values

Question 6

Entrepreneur

Answer 6

An individual who sets up and runs a new business and takes on the risks associated with the business

Question 7

Four factors of production

Answer 7

Land, labour, capital, enterprise.
The resources used to produce goods and services

Question 8

Sectors of industry: Primary, secondary & tertiary sector

Answer 8

Economies are divided into three sectors of activity: extraction of raw materials (primary), manufacturing (secondary), and service industries (tertiary) which exist to facilitate the transport, distribution and sale of goods

Question 9

What is a business?

Answer 9

An organisation that transforms inputs (resources*) into outputs (products/services) that are purchased by its customers

Question 10

What’s the purpose of a business?

Answer 10

To provide goods and services that satisfy customers’ needs and wants