chapter 1

Question 1

Curpose of business activity

Answer 1

the purpose of business activity is to identify and satisfy the needs and wants of the people with the overall aim of earning profit

Question 2

Concept of adding value

Answer 2

to add extra value to a product . The customer is willing to pay more after the value has been added

Question 3

Nature of economic activity

Answer 3

there are limited resource to satisfy unlimited wants

Question 4

Business environment is always changing (4)

Answer 4

1. Consumers’ expectation
2. Production techniques
3. Competition’s behavior
4. Employees’ demands

Question 5

Factor to succeed (5)

Answer 5

1. Factor of production
   - land
   - labour
   - capital
   - enterprise( the driving force provide by risk taking individual )
2. Finance
3. Planning
4. Contacts
5. Customers
6. Suppliers

Question 6

Why business fail early on (4)

Answer 6

1. Lack of planning
2. Lack of funds
3. lack of expertise
4. lack of customer base

Question 7

Qualities needed by entrepreneur (4)

Answer 7

1, Ability to take risk

2. Good planner
3. Organise 3 factor of production
4. Motivate work force

Question 8

Role of business enterprises in the development of a country (5)

Answer 8

1. Business enterprise provide employment
2. They pay taxes
3. Increase the GDP of the country
4. They satisfy the need and wants of people
5. They bring foreign currency if the products are sold outside of the country

Question 9

Aim of Social enterprise (5)

Answer 9

1. Well being of the society
2. making profit is not the main aim
3. AIm to solve social problem faced by people
4. Profit is kept to provide more services
5. They normally provide education and health

Question 10

Triple bottom line

Answer 10

use to measure the performance of a business

• Environmentally
• Socially
• Economically

Question 11

Joint venture

Answer 11

Two or more businesses agree to work closely together on a particular project and create a separate business division to do so