business activity (apt 1)

Question 1

What is a want?

Answer 1

Good/service that people would like to have but not essential for living

Question 2

What is a need?

Answer 2

Good/service essential for living

Question 3

What is scarcity?

Answer 3

Lack of sufficient products to fulfil total wants of the population

Question 4

What is the economic problem?

Answer 4

Unlimited wants but limited resources to produce goods and services to satisfy those wants. Creates scarcity

Question 5

What is the factors of production?

Answer 5

land, labour, capital and enterprise

Question 6

What is the opportunity cost?

Answer 6

Next best alternative given up by choosing another item

Question 7

What is specialisation?

Answer 7

People or businesses concentrate on what they are best at

Question 8

added value?

Answer 8

difference between the selling price and the cost of materials

Question 9

primary sector

Answer 9

extracts and uses natural resources of Earth to produce raw materials used by other businesses

Question 10

secondary sector

Answer 10

manufactures goods using the raw materials provided by primary sector

Question 11

tertiary sector

Answer 11

Provides services to consumers

Question 12

capital

Answer 12

the money invested into the business by the owners.

Question 13

entrepreneur

Answer 13

is a person who organises operates and takes the risk for a new business venture.

Question 14

profit?

Answer 14

the money gained after earning back the cost to make a product.

Question 15

a business plan

Answer 15

document containing business objectives and important details about operations, finance and owners of business

Question 16

social enterprise?

Answer 16

has social objectives as well as an aim to make a profit to reinvest back into the business.

Question 17

how do governments support business start ups?

Answer 17

Business help - organise training for entrepreneurs
Premises - provide low cost premises to start up business
Finance - loans at low interest rates
Grants - for capital or to train employees
Research - universities make their research facilities available

Question 18

characteristics of a successful entrepreneur

Answer 18

Creative, hardworking, optimistic, risk taker, motavation

Question 19

pros of specialisation?

Answer 19

Workers are trained in a specific task which increases efficiency
Saves time and energy - production is faster
Quicker to train workers as they only focus on one task
Workers can develop skills as they do the same task repeatedly and master it

Question 20

cons of specialisation?

Answer 20

Boring to do the same task repeatedly
If one worker is absent and no one else can do the job, entire production might halt

Question 21

land?

Answer 21

Natural resources that can be obtained from nature

Question 22

capital?

Answer 22

Finance, machinery and equipment needed for the manufacture of goods

Question 23

labour?

Answer 23

Number of people available to make products

Question 24

enterprise?

Answer 24

risk taking ability of the person who brings other factors of production together to produce a good/service. Reward is profit from the business