chapter1-3

Question 1

Business Activities

Answer 1

the process of producing goods and services to satisfy consumer demand.

Question 2

Need

Answer 2

a good or service which is essential to living.

Question 3

want

Answer 3

a good or service which people would like, but is not essential for living.

Question 4

Economic problem

Answer 4

unlimited wants cannot be met because there are limited factors of production. this creates scarcity

Question 5

4 Factors of Production

Answer 5

the resources needed to produce goods and services-land,labour,capital and enterprise

Question 6

scarcity

Answer 6

there are not enough goods and services to meet the wants of population.

Question 7

opportunity cost

Answer 7

the benefit that could have been gained from an alternative use of the same resource.

Question 8

Specialisation

Answer 8

people and business concentrate on what they are best at

Question 9

Division of labour

Answer 9

production is divided into separate tasks and each employee does just one of those tasks.

Question 10

consumer goods

Answer 10

products which are sold to the final consumer. They can be seen and touched, for example computers and food,

Question 11

consumer services

Answer 11

non-tangible products such as insurance services, transport.

Question 12

capital goods

Answer 12

The physical goods such as machinery and delivery vehicles, used by other businesses to help produce other goods and services.

Question 13

primary sector

Answer 13

firms whose business activity involves the extraction of natural resources.

Question 14

secondary sector

Answer 14

firms that process and manufacture goods from natural resources.

Question 15

tertiary sector

Answer 15

firms that supply a service to consumers and other businesses

Question 16

chain of production

Answer 16

the production and supply of goods to final consumer involves activities fro primary, secondary and tertiary sector businesses.

Question 17

mixed economy

Answer 17

an economy where the resources are owned and controlled by both the private and the public sectors.

Question 18

private sector

Answer 18

the part of the economy that is owned and controlled by individuals and companies for profit.

Question 19

public sector

Answer 19

the part of the economy that is controlled by the state or government

Question 20

Entrepreneur

Answer 20

an individual who has an idea for a new business and takes the financial risk of starting up and managing it.

Question 21

Business Plan

Answer 21

a detailed written document outlining the purpose and aims of a business which is often used to persuade lenders or investors to finance a business proposal.

Question 22

Revenue

Answer 22

the amount a business earns from the sale of its products,

Question 23

characteristics of successful entrepreneurs

Answer 23

innovative,self-motivated,self-confident,risk-taker and strong leadership qualities.

Question 24

Business start-up

Answer 24

a newly formed business.They usually start small, but some might grow to become much bigger.

Question 25

sole trader

Answer 25

a business that is owned and controlled by just one person. who takes all of the risks and receives all of the profits.

Question 26

scarcity

Answer 26

unlimited wants + Limited resources

Question 27

Labour

Answer 27

is the number of people available to work

Question 28

Land

Answer 28

is all the natural resources-minerals,ores,oil,forests and fields

Question 29

capital

Answer 29

is machinery,equipment and finances needed for production of goods and services

Question 30

examples of renewable energy

Answer 30

solar power, hydro power and wind turbines

Question 31

Retailer

Answer 31

they sell products for someone

Question 32

Whole sailors

Answer 32

supply in bulk

Question 33

4 main ways of adding value to a business

Answer 33

Branding, Excellent service quality, product features and convenience

Question 34

nationalisation

Answer 34

private sectors becoming public sectors

Question 35

privatisation

Answer 35

Public sectors becoming private sectors

Question 36

examples of private sectors

Answer 36

British Gas, Sainsburys,Thames Christian school

Question 37

examples of public sectors

Answer 37

NHS, TFL, Jobcentre,chelsea Academy

Question 38

Revenue

Answer 38

the amount a business earns from the sales

Question 39

what do you size to measure Business size.

Answer 39

Capital employment,Value of output,Number of employees and Market Share.

Question 40

examples of Internal growth

Answer 40

Producing more goods, Develop new products and find new markets

Question 41

examples of External Growth

Answer 41

Horizontal integration, forward vertical integration, backward vertical integration and conglomerate integration.

Question 42

Horizontal Integration

Answer 42

bringing two firms together who are in the same industry and same sector-stage of business activity. e.g-two chocolate manufacturers

Question 43

vertical integration

Answer 43

different stages of production

Question 44

forward vertical integration

Answer 44

different stages of production the firm that is further behind the other on is expanding with the firm that is ahead.

Question 45

Backward vertical integration

Answer 45

different stages of production the firm that is further ahead is expanding with one that is behind it in production.

Question 46

example of Horizontal integration

Answer 46

primary+primary secondary+secondary Tertiary+Tertiary

Question 47

example of Forward Vertical integration

Answer 47

manufacturer to retailer

Question 48

External growth

Answer 48

this takes place when a business merges with or takes over another business in the same or different industry.The process is known as integration.

Question 49

example of backward vertical integration

Answer 49

supplier to producer

Question 50

example of conglomerate integration

Answer 50

Business in industry A + Business in industry B