Test Revision 1

Question 1

What is a business plan

Answer 1

A written document that provides a description and overview or your companies future it is useful to attract loans or investments

Question 2

What is specialisation

Answer 2

People and businesses concentrate on what they are best at

Question 3

2 benefits of specialisation

Answer 3

Increased efficiency
Increased quality

Question 4

What is opportunity cost

Answer 4

The loss of the next best alternative when making a decision

Question 5

Two jobs in the primary sector

Answer 5

Farming
Fishing
Mining

Question 6

2 parts of a business plan

Answer 6

Aims
Competition

Question 7

Why might a investor want a business plan before agreeing to a loan

Answer 7

To show that the business will be able to repay the loan
Shows what the aims of the business are for example expanding and getting another factory to produce candles in to increase profit

Question 8

2 ways the government might help a business become more competitive

Answer 8

Loans/ grants
They can pay of rent on their factories so they can spend that money elsewhere in the business
Tarrifs
They can put a tarrif on the lorry engine batches so they can raise prices so make more profit