Business unit 1 gcse

Question 1

What is a good?

Answer 1

Goods – physical (tangible) products such as burgers, cars, laptops.

Question 1

What are wants?

Answer 1

Wants – things which we desire.

Question 2

What is a service?

Answer 2

Services – non-physical items such as hairdressing, NHS, banks,
insurance.

Question 3

What are needs?

Answer 3

Needs – essential for us to live.

Question 4

Land definition ?

Answer 4

Land - A business needs land or a building

Question 5

Labour definition?

Answer 5

Labour - A business needs workers.

Question 6

Capital definition ?

Answer 6

Capital - A business needs money to start and run.

Question 7

Enterprise definition?

Answer 7

Enterprise - An entrepreneur is needed to bring it all together and run the business.

Question 8

Primary sector definition ?

Answer 8

Primary - Extraction of raw materials e.g farmer, coal mining.

Question 9

Secondary sector definition ?

Answer 9

Secondary - Turing the raw materials extracted at the primary stage
into finished goods.

Question 10

Tertiary sector definition ?

Answer 10

Tertiary - Provide a service and sell the goods and services e.g. NHS,
shops.

Question 11

What is an Entrepreneur?

Answer 11

Entrepreneur - someone who takes a risk and starts a business. Determination, passion, creative, motivated, takes risk, organised persistent

Question 12

What are Stakeholders?

Answer 12

anyone who is interested or affected by what a business does

Question 13

Why do businesses face a constantly changing environment (external)?

Answer 13

Political, Environmental, Social (trends changing), Technology, Legislation (laws), Economy (unemployment, interest rates), Competitors

Question 14

Who can stakeholders be?

Answer 14

Owners, employees, customers, local community, suppliers, government etc. or Stakeholders sometimes have conflicting views and can influence the decisions a business makes.

Question 15

What is a Sole trader ?

Answer 15

a type of enterprise owned and run by only one person and in which there is no legal distinction between the owner and the business entity.

Question 16

What is a Partnership?

Answer 16

a legal arrangement that allows two or more people to share responsibility for a business

Question 17

What is a Private limited company ?

Answer 17

A business that is owned by its shareholders, run by directors and where the liability of shareholders for the debts of the company is limited.

Question 18

What is a public limited company?

Answer 18

is a business that is legally allowed to sell its shares to the public

Question 19

What is unlimited liability?

Answer 19

if the business fails, you not only lose the money you invested, but your personal possessions can also be taken to repay any debt the business has.

Question 20

What is limited liability?

Answer 20

you only lose the money that you invested. If the business fails and has debts, your personal possessions are NOT at risk of being taken.

Question 21

Aims for businesses?

Answer 21

An aim is general and is what a business hopes to achieve as a result of its work e.g. survive, maximise profit, grow, increase market share, improve customer satisfaction, be more ethical, increase shareholder dividends, break even.

Question 22

Objectives for businesses?

Answer 22

Objectives state in more detail how an aim will be achieved. Objectives should be SMART. Specific,Measurable, Achievable Realistic, Time based.
E.g. To grow by opening 20 new stores within the next two years.

Question 23

Why does a business have aims and objective?

Answer 23

To co-ordinate business activity, Gives a common goal for workforce, Helps with decision making

Question 24

How can a business measure success?

Answer 24

Profit, number of stores, customer satisfaction, number of customers, reputation, number of items sold, market share.

Question 25

Factors influencing business location?

Answer 25

Proximity to target market, cost, availability of raw materials, availability of labour, infrastructure in area, competition.

Question 26

What are Business Plans?

Answer 26

personal details, mission statement, aims and objectives, details of product/service, market research, production details, expected costs and profit, financial documents

Question 27

Expanding a business?

Answer 27

Organic (internal) growth franchising, open new stores, embrace e-commerce, outsource, develop new products./ External (inorganic) growth: merger & takeovers./

Question 28

Economies of scale

Answer 28

the benefits a business gets by growing

Question 29

Diseconomies of scale

Answer 29

(the negatives a business can experience by growing in size):
Poor communication, lack of motivation, loss of direction and co-ordination.