Basic unit 1

Question 1

What is a business?

Answer 1

A business is a particular type of organisation – one which involves people and resources in the making of a good or the providing of a service.

Question 2

What does a business always have?

Answer 2

All businesses have a name, a set of aims they wish to achieve, an image, resources and rules.

Question 3

What two things that businesses sell?

Answer 3

Goods and services

Question 4

Why name a reason for buying a service?

Answer 4

you are not qualified or skilled enough to carry out the service (surgical operation, car service)
you don’t have enough time (dry cleaning, ironing, education)
too lazy to do it yourself (gardening, shopping delivery, take-away)
don’t have the equipment (bus service, car wash, car mechanic, plumber, tailor)
convenience (restaurant)
messy or dangerous (cleaning windows, unblocking toilets)
status (made-to-measure clothes, personal party or event, expensive haircut)

Question 5

What is a good and what is a service?

Answer 5

Goods are tangible

Services are intangible

Question 6

What are the factors of production?

Answer 6

Land
Labour
Capitol
Enterprise

Question 7

What are the definitions of the factors of production?

Answer 7

Land (raw materials)
Labour (people)
Capitol (man-made equipment)
Enterprise (ideas)

Question 8

What are the sectors of industry?

Answer 8

Primary
Secondary
Tertiary

Question 9

What is an entrepreneur?

Answer 9

It is the person who comes up with the idea and takes the risk in investing in it

Question 10

What does an entrepreneur have to have?

Answer 10

Take risks – seeing a chance – taking it – risking their own money to invest in the idea;

Have good communication skills – enabling them to communicate with employees, suppliers and of course the customers;

Rise to the challenge – doesn’t give up easily – finds solutions to overcome problems;

Have good decision-making skills – deciding which product to produce, best methods of raising finance, what price to charge customers and which staff to hire;

Have good leadership skills – being able to lead and motivate his/her workers to ‘achieve the dream’!

Question 11

What is a key factor to success in selling goods/services?

Answer 11

Finding a gap in the market

Question 12

Name a source of business help

Answer 12

Bank
Lawyer
Enterprise Agency
Chambers of commerce
Entrepreneurs

Question 13

What is the cycle of business?

Answer 13

People (consumers) has needs and wants.

Businesses identify these wants by doing research

Businesses produce goods and services to goods and services to satisfy consumer needs and wants to make a profit

Consumers buy the goods and services produced by the business and consume them

Question 14

How is wealth created?

Answer 14

Wealth is created by the production stage and adding things to the item