Enterprise and business functions Flashcards
What is the primary focus of Chapter 1 in the OCR Business A Level?
An introduction to business concepts and the role of businesses in the economy.
True or False: A business is any organization that provides goods or services to customers.
True
Fill in the blank: The main purpose of a business is to create ________.
value
What are the four main factors of production?
Land, labor, capital, and entrepreneurship.
Which of the following is NOT a type of business ownership? a) Sole trader b) Partnership c) Corporation d) Monopoly
d) Monopoly
What is a sole trader?
A business owned and operated by one individual.
List one advantage of being a sole trader.
Complete control over the business.
What is a partnership?
A business owned by two or more people who share profits and responsibilities.
True or False: Corporations have limited liability.
True
What is meant by ‘limited liability’?
Owners are not personally responsible for the debts of the business.
What is a private limited company often abbreviated to?
Ltd.
Multiple Choice: Which of the following is a characteristic of a corporation? a) Unlimited liability b) Limited lifespan c) Limited liability d) Owned by a single individual
c) Limited liability
What does the term ‘entrepreneur’ refer to?
An individual who starts and runs a business, taking on financial risks in the hope of profit.
Fill in the blank: Businesses aim to satisfy ________ by providing goods and services.
customer needs
What is a business plan?
A detailed proposal outlining the strategy and financial forecasts for a business.
True or False: All businesses are profit-driven.
False
What is a non-profit organization?
An organization that operates for purposes other than making a profit.
What is meant by ‘market research’?
The process of gathering, analyzing, and interpreting information about a market.
What are ‘goods’ in business terminology?
Tangible products that can be sold.
What are ‘services’ in business terminology?
Intangible offerings that provide value to customers.
What is the role of a manager in a business?
To plan, organize, lead, and control resources to achieve business objectives.
True or False: A business’s mission statement outlines its purpose and objectives.
True
What is the difference between ‘primary’ and ‘secondary’ sectors?
The primary sector involves extracting raw materials, while the secondary sector involves manufacturing goods.
Fill in the blank: The ________ sector includes services like healthcare, education, and finance.
tertiary
What is ‘corporate social responsibility’ (CSR)?
A business model that helps a company be socially accountable to itself, its stakeholders, and the public.
