Topic 1

Question 1

Good

Answer 1

Is a physical product

Question 2

Service

Answer 2

Is an intangible product

Question 3

Customer

Answer 3

Is someone who buys a product from a business

Question 4

Consumer

Answer 4

Is someone who uses goods and services produced by business

Question 5

Entreprenuer

Answer 5

Is someone who is willing to take the risk to start a new business

Question 6

Social enterprise

Answer 6

Is a business is ser up to help society rather to make profit

Question 7

Resources

Answer 7

Are the inputs that businesses use to provide their goods or services

Question 8

Enterprise

Answer 8

Refers to the people,who o have skills

Question 9

Interest

Answer 9

Is the money paid by banks as a reward to attract people to save with them

Question 10

Primary sector

Answer 10

Made up of organisations that are at the first stage of production that use raw materials

Question 11

Secondary sector

Answer 11

Made up of organisation that are at the second stage of the production process

Question 12

Tertiary sector

Answer 12

Is the final stage and is made up of organisation that provide services for e.g. fast food

Question 13

Interest rates

Answer 13

Refer to the cost of borrowing money

Question 14

Inflation

Answer 14

Refers to the rate at which prices are increasing

Question 15

Sole trader

Answer 15

Is someone who sets up in business on his or her own

Question 16

Advantages of being a sole trader.

Answer 16

-It is quick and easy to set up as a sole trader
-make decisions for yourself
You keep all profits for yourself

Question 17

Disadvantage of being a sole trader

Answer 17

-It can be stressful making all decisions yourself
-A sole trader needs to handle all aspects of the business
If the business goes wrong you have unlimited liability

Question 18

Profit

Answer 18

Measures the difference between the values of a business revenue (sale) and its total cost

Question 19

Unlimited liability

Answer 19

Means that the personal possessions of the owners of a business are at risk if there are any problems. There is no limit to the amount of money of the owners may have to pay out

Question 20

Partnership

Answer 20

Occurs when two or more people join together in a business enterprise to pursue profit

Question 21

A deed of partnership

Answer 21

Is an agreement between partners that sets out the rules of the partnership, such as how profit will be divided and how the partnership will be valued id someone wants to leave