Test Revision 1 Flashcards
What is a business plan
A written document that provides a description and overview or your companies future it is useful to attract loans or investments
What is specialisation
People and businesses concentrate on what they are best at
2 benefits of specialisation
Increased efficiency
Increased quality
What is opportunity cost
The loss of the next best alternative when making a decision
Two jobs in the primary sector
Farming
Fishing
Mining
2 parts of a business plan
Aims
Competition
Why might a investor want a business plan before agreeing to a loan
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
2 ways the government might help a business become more competitive
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
