End Of Term Revision

Question 1

Small business(adv)

Answer 1

Adv-
*they provide employment opportunities, particularly in rural areas
*The profits are spread between fewer persons
*The owners are not answerable to lots of others e.g shareholders
*Good working relationships are more easily established and maintained

Question 2

Small business (dis)

Answer 2

Disadvantage
*Starting up the business exposes the owner to high personal financial risk.
*Once established, income can remain highly variable
*They may have to pay for outside expertise because they cannot afford to employ specialists

Question 3

Budgeting

Answer 3

Budgeting is the process of creating a plan to spend your money.

Need-The purpose of a budget is to plan, organize, track, and improve your financial situation.

Question 4

Technology in a business

Answer 4

Technology enhances the smooth running and efficiency of any business and improves its chances of profitability.

Question 5

Forms of technology

Answer 5

Hardware -hardware of technological items that you can visually see this includes items such as desktops laptops computers monitors & keyboards.

Software -software is the name given to the program that enable the hardware to do its job which is the receiving, storage, retrieval and transmission of information.

Internet -the internet is the reason why technology is put to work it makes it possible for a business to use technology to communicate, advertise, provide l information and accept orders and payments directly and fast

Question 6

Types of technology

Answer 6

Word, Excel, database, presentations, graphic software, computer, management information systems, the internet, mobile phone, computer aided manufacturer

Question 7

Benefits of technology to a business

Answer 7

Speed communication, easy availability to information, readily available information and feedback, improve the customer service, a low-end customers to contribute to the guidance of business for example feedback on a product or the customers shopping experience

Question 8

Services of central banks

Answer 8

*It’s Carrys out the government’s financial business
*It’s manages the exchange equalization account
*It’s supervises the banking system

Question 9

Services of commercial Banks

Answer 9

*They enable individuals and businesses to deposit money they do not need for immediate use in a safe place.
*The enable customers to decide how they want to use their money without the need to carry ready Cash
*They provide a variety of services such as loans overdrafts checks and other forms of money transfer facilities including automatic telling machines ATM credit card debit card telephone banking

Question 10

Saving

Answer 10

Saving is the money that the person has saved instead of spending and placed into a a bank account or a similar financial institution regular saving is an important aspect of personal budgeting

Question 11

Factors to consider when saving

Answer 11

Factors to consider when saving is a person’s goal and their financial situation

Question 12

Why save in a bank

Answer 12

Your money will be protected from theft and fires. Plus, your money will be federally insured so if your bank or credit union closes, you will get your money back.

Question 13

Sources of income

Answer 13

PERSONAL SOURCES such as savings, BORROWING FROM FRIENDS AND FAMILY, Credit Cards, GOVERNMENT GRANTS, BANKS which offer loans, EQUITY which is capital exchange for shares in ownership of a business

Question 14

Industry that benefit from agricultural production

Answer 14

The agriculture industry benefits from skilled labour in Aquaculture, Fishing, Food Preparation, Farm Management, Crop Production, Livestock Production, General Agriculture, Fish and Fish Processing, Food and Beverage manufacturing

Question 15

Short term planning

Answer 15

Short term planning generally refers to any development likely to come into effect within the next three years

Question 16

Long-term planning

Answer 16

Long soon planning requires considerable skill as it incorporates development that are expected within a period of up to 10 years ahead

Question 17

Private limited company

Answer 17

A private limited company has to have a minimum of one member and there is no maximum the capital of the business is divided into share but the shares cannot be advertised for sale publicly

Question 18

Public limited companies

Answer 18

Is an association of people who join together to contribute in joint or common stock which is used in some form of the business Enterprise. The profit achieved is then shared among the contributors.

Question 19

Factors of production

Answer 19

Land-land as a factor of production includes not only land itself but also all natural resources found in agency therefore it includes minerals deposit such as bauxite oil gas iron and diamond.

Labor - is people’s physical and mental contribution to the creation of goods and services

Capital - Capital as a factor of production is the money invested in a business in order to acquire the asset which the business need to produce or trade.

Enterprise - Enterprise is similar to labor but is a separate Factor because it refers to the special skills (entrepreneurship)that some people have to organize their business.

Question 20

Primary secondary and tertiary production

Answer 20

Primary production - primary production concerns the extraction of basic raw materials provided by nature

Secondary production - secondary production consists of the manufacturing and construction of an industries

Tertiary production - tertiary activities are also forms of production because they enable the change of ownership of goods and services

Question 21

Packaging

Answer 21

The packaging is the physical container or wrapping of the product.

Factors
They provide effective protection of the goods
Make it easy to use for example to unwrap
Make it easy to transport
Exploit promotional opportunities appeal to the consumers visually on display

Question 22

Entrepreneur

Answer 22

An entrepreneur is a person who undertakes the risk involved and establishing and running a business and the hope of making a profit.

Entrepreneurship is the act of process of managing a business Enterprise

Reasons to start a business are it gives the owner the opportunity to be their own boss, make decisions and hopefully make a profit

Question 23

Terms of sales marketing

Answer 23

ABC: Always Be Closing.
AIDA: Attention, Interest, Desire, Action.
BANT: Budget, Authority, Need, Timeline.
Commission: The payment a sales rep gets when they successfully sell something.
Discovery call: The first call a sales rep makes to a prospect.