Business

Question 1

1. What is business activity?

Answer 1

The process of producing goods and services to satisfy consumers demand

Question 2

What is a need?

Answer 2

Essential for life

Question 3

What is a want?

Answer 3

The things you desire but not essential for life

Question 4

What is the purpose of business activity?

Answer 4

Satisfy consumers needs and wants through services and goods production

Question 5

What is the reasoning of why we cant have all our wants?

Answer 5

Our wants are unlimited

Question 6

If 100 people in the country had a much higher income than the rest of the population, what may happen?

Answer 6

They buy more than they need
Items will become scarce
Trouble in politics

Question 7

Give a definition of economic problem?

Answer 7

Unlimited wants cant be met because there are limited factors of production. Creates scarcity.

Question 8

What does factors of production mean?

Answer 8

The resources needed to produce goods and services. (labour, captial, land, enterprise

Question 9

What does it mean when it says they are not enough factors of production?

Answer 9

There are not enough goods and services to meet the populations wants

Question 10

What is ment by scarcity?

Answer 10

There are not enough goods and services to meet the wants of the popluation

Question 11

What is ment by oppurtuntiy cost?

Answer 11

Opportunity cost is what you give up when you choose to do one thing instead of another. It’s like deciding between buying candy or saving money for a toy. If you choose candy, the opportunity cost is the toy you could have bought instead.

Question 12

What is specialisation?

Answer 12

Where people concentrate on what they are best at

Question 13

What does increasing specialistion mean?

Answer 13

That buisnesses are far more efficient than once were

Question 14

Name a positive impact of specialisation

Answer 14

Reduces the cost of production

Question 15

What is ment by division of labour

Answer 15

Production is divided into separate tasks and each worker does just one of those task

Question 16

What are the different types of goods and services?

Answer 16

Consumer goods:
Goods which are sold in public, of which we can see and touch. They are separated into 2, non-durable goods and durable goods e.g. durable : items are repeated ‘tv’ non-durable: iteams that are used once “food or drinks”

Consumer services:
Products which are sold to the public, but cant be seen or touched e.g. banking, insurance

Capital goods:
Products are sold to other businesses to help them in their production process e.g. machines, computers

Question 17

How does a business add value?

Answer 17

by taking raw materials and turning them into a good or service which sells to customers at a price greater than the cost of the raw materials used in their production

Question 18

When will profit increase when increasing added value?

Answer 18

If a business is able to increase its added value without increasing its cost

Question 19

What is a positive trait for branding?

Answer 19

Brings trust with customers
Increases added value

Question 20

How do you increase a good or services value?

Answer 20

Excellence service quality
Build trust

Question 21

What are three ways u can increase goods or services value?

Answer 21

Product feature
products that have more features and functions than similar products on the markert will allow the producerr to charge a high price

Covenience
many consumers lead busy lives nd they are often prepared to pay a higher price for goods or services, which saves time e.g. ready meals

Question 22

Can u do this?

Answer 22

YES YOU CAN ZO AND GOOD LUCK, REMEMBER GOD IS WITH YOU AND HE LOVES YOU!