Advantages and disadvantages

Question 1

Name 6 advantage of a formal business

Answer 1

More workers can put together more capital
*workers can earn higher wages
*workers are protected my labor laws
*workers can belong to a trade or union
*they can use advanced technology
*more workers can get employed

Question 2

Disadvantages

Answer 2

More capital is needed

There needs to be proper records of all transactions

Trade actives lead to higher wages

May cause shortage of housing,water and other services

The bussiness needs to be registered

It is difficult to hire and fire workers

Question 3

Four main characters of money

Answer 3

Scarce
Durable
Portable
Divisible

Question 4

Four main roles of money

Answer 4

Medium of exchange- makes trade easier because services can be exchanged for money

Unit of account - it makes it easier to compare tye value of one item with that if another

Store of value- stays more or less the same over a long period of time

-future payment -because people can buy on credit and settle in future

Question 5

What currency is Japan’s currency

Answer 5

Yen

Question 6

What is Austrias currency

Answer 6

Euro

Question 7

What is uks currency

Answer 7

Pounds

Question 8

Name 4 uses of electronic banking

Answer 8

Make balance enquiries- how much you have in your account

Transfer funds - transferring money from your cheque to savings account

-pay account
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