Life

Question 1

What is a chain of production?

Answer 1

This is a process:

Raw materials are Manufactured and then Serviced in some way.

Question 2

What is the Primary sector?

Answer 2

This is the extraction of Raw materials.

Question 3

Give 3 reasons for the decrease in importance of the primary sector in Britain?

Answer 3

1) Increased use of machinery.
2) More foreign competition e.g.coal
3) Decrease of raw materials

Question 4

What is the secondary sector?

Answer 4

When raw materials are Manufactured into finished products.

Question 5

Give two reasons for the decrease in importance of the secondary sector in Britain?

Answer 5

1) More foreign competition

2) Increased use of machinery

Question 6

What is the Tertiary sector?

Answer 6

Service provided for consumers

Question 7

Give 4 reasons for the increase in importance of the tertiary sector in Britain?

Answer 7

1) Increased wealth in Britain. More shops and retailers needed.
2) Many tertiary jobs connected to rise in population. Eg health, education
3) Businesses focusing more on customer service, more call centres.
4) More money spent on leisure time, eg cinema

Question 8

What is interdependence?

Answer 8

Way in which businesses in different sectors depend on each other

Question 9

What is specialisation?

Answer 9

When a business only concentrates on one activity

Question 10

What are the advantages of specialisation?

Answer 10

1) By focusing on only one activity a business can look at ways to reduce costs in an area, hence producing cheaper goods

Question 11

What is added value

Answer 11

When a business finds a way to increase the cost of a product/ item

Question 12

What is de-industrialisation?

Answer 12

Reducing the importance of the secondary sector

Question 13

What are business objectives ?

Answer 13

What a business seeks o achieve

Question 14

Give 4 examples of a businesses objectives?

Answer 14

1) Growth
2) Profit
3) Survival
4) Providing a service

Question 15

What is satisficing?

Answer 15

Making profit meet needs, not maximising them

Question 16

What is dividends?

Answer 16

Payments made to a business’s shareholders from profits

Question 17

What is market share?

Answer 17

Percentage of particular market which business controls.

Question 18

What is a mission statement?

Answer 18

A brief summary of a

Business’s objectives

Question 19

What is the private sector?

Answer 19

Part of business activity owned by private individuals eg sole traders, PLC’s, LTD’s and partnerships

Question 20

What is the public sector?

Answer 20

Part of a business’s activity owned by the government eg hospitals, police

Question 21

How do the public and private sectors differ?

Answer 21

Private = profit, growth and survival
Public = providing a service

Question 22

What is a public corporation?

Answer 22

An organisation owned by the national government

Question 23

What are stakeholders?

Answer 23

Group/ individual who are interested in a business

Question 24

Why are workers stakeholders?

Answer 24

Because they rely on business for pay in order to have a financially secure future.

Question 25

Why are managers stakeholders?

Answer 25

They rely on the business for pay, secure there future. Managers can make plans for the business and conflict with the workers.

Question 26

Why are owners stakeholders?

Answer 26

Dividend payments from profits, so they would want maximised profits, they might conflict with workers and managers.

Question 27

Why are customers stakeholders?

Answer 27

Thy want good prices and quality service

Question 28

Why are suppliers stakeholders?

Answer 28

Want business to grow, so more demand for supplies.

Question 29

Why is the government a stakeholder?

Answer 29

Want business to grow ➡ more people working ➡ more people paying taxes.

The less the business pays for employment, the more money there is for government to spend.

Question 30

Why is the local community a stakeholder?

Answer 30

Wants business to grow ➡ more people working.

They don’t want a e.g toxic waste business

Question 31

Why are competitors stakeholders?

Answer 31

Observe how rivals are running there business, shows how they can improve.

Question 32

Why are pressure groups stakeholders?

Answer 32

They want to influence business policy to support case

Question 33

What is an incorporated business?

Answer 33

Business which is a separate legal

entity. Has LL, owned by share holders.

Question 34

What are the advantages and disadvantages of a private limited company?

Answer 34

Advantages:

• Has limited liability, owner only risks losing money they invest
• Incorporate - can continue trading after share holder retires/dies

Disadvantages:

• PLCs are expensive to set up than public limited companies because if all the legal paperwork.
• Company is legally obliged to publish its profits anywhere.

Question 35

Advantages and disadvantages of a public limited company?

Answer 35

Advantages:

• More capital can be raised by a public limited company than by any other business.
• Allows business to expand and diversify.

Disadvantages

• Share holders have little say. Unless they have a lot of shares.
• Easy for someone to buy shares, if they can convince fellow shareholders to sell.
• Can have a large number of share holders, makes it difficult for public limited company to sacrifice profit to other objectives e.g helping environment.

Question 36

list 7 non pay related motivation techniques

Answer 36

• Fear
• Job rotation
• Job enlargement
• Team-working
• Award schemes
• Job enrichment
• Promotion