Understanding buissness

Question 1

What are the factors of production

Answer 1

Land labour capital and enterprise

Question 2

What are the sectors of industry

Answer 2

Primary secondary tertiary

Question 3

Describe the factors if production

Answer 3

Land-natural resources that the buisness uses e.g plot of land ,coal,forests

Labour- the workforce of the buisness e.g joiners ,shop assistants,teachers

Capital- the tools machinery and equipment that a buisness owns e.g tractors ,factories,lorries

Enterprise- the buisness ideas that the owners or enterpenures have about how to use land labour or enterprise to make a profit

Question 4

Describe the sectors of industry

Answer 4

Primary- the sectors involved in extracting raw materials from the land sea or air

Secoundry- this is the sector tqht uses the raw materials from the primary sector to manufacturerproducts or parts of other products.

Tertiary- this is the sector involved in providing services e.g hairdressers taxis

Question 5

What are the sectors of economy

Answer 5

Private, public, third

Question 6

Describe the sectors of economy

Answer 6

Private- this sector of the economy are owned and controlled by private individuals.thease people have invested their time money and idears into the buisness and want to make a profit.e.g Greg’s,nike

Public- this sector of the economy are owned and controlled by the government. They provide services to people because they need them and arnt given out based on ability to pay
E.g education and health services

Third- this sector of the economy are not run to make a profit for the owners and are not owned by the government. They need to make a profit to survive but their main aim is to raise awareness to their cause. E.g charities social enterprises

Question 7

What’s an advantage and disadvantage of a sole trader ( 4)

Answer 7

An advantage of is sole trader isThe owner makes all the decisions and
Owner gets to keep all the profits
A dissagevantage if a sole trader is that finance can be difficult to raise as banks may not be as keen to lend to a small buisness and that they will have long working hours few holidays and all the responsibilities fall on them.

Question 8

What’s advantages and disadvantages of a partnership(4)

Answer 8

An advantage is tagt the workload can be shared and that partners can specialise in their own area if expertise

A disadvantage of a partnership is that profits are shared and partners may disagree on how to run the buisness

Question 9

What the advantageand disadvantages of a private limited company(4)

Answer 9

An advantage of a private limited company is yhat more finance can be raised from lenders and shareholders and that there is limited liability .

A disadvantage of a private limited company is that profits are shared amongst more people
And taht shars can’t be sold to the general public.

Question 10

What is the ownership if a sole trader

Answer 10

A sole trader is owned and run by one person

Question 11

What I the ownership of a partership

Answer 11

A partnership is owned and controlled by 2 to 20 people

Question 12

What is the owntership of a private limited company

Answer 12

Is run by a board of directors and owned by shareholders

Question 13

What is the ownership of a local government organisations

Answer 13

They are run and owned by the goverment

Question 14

What is the ownership of a social enterprise

Answer 14

Thease are run by groups such as youth and sport clubs and are run by their members who have been elected on to the comitee

Question 15

What is the ownership of a charity

Answer 15

A board of trustees control how they are run and most the people who work for them are volenteers

Question 16

What quality’s and skills does an entrepreneur need

Answer 16

Being a risk taker - willing to risk personal funds to start and keep teh buisness going

Being determined- never giving up Being willing to see things throught

Being creative- to come up with the idears for buisness

Being a hard worker- to work for long hours to get the buisness started and keep it going

Question 17

What are 3 aims and objectives of a private sector

Answer 17

To break even and cover your costs

To maximise profits

To give excellent customer service

Question 18

What are 3 aims and objectives of a public sector organisation

Answer 18

To provide a quality service to the public

To stay within budget

To serve the public interest

Question 19

What are 3 aims and objectives of a third sector organisation

Answer 19

To use profits to help a social or environmental cause

To raise awareness to their cause

To recruit more volunteers

Question 20

What is a stakeholder

Answer 20

A person or a group of people who have an interest in a buidnesd or organisation and in the way of which it is managed

Question 21

Interests of stakeholders in a buisness(4)

Answer 21

Employee- good salary

Customer- best quality products at yhe lowest possible price

Local community- companies provides jobs for an area

Suppilers- want the buisness to successful to ensure repeat customer

Question 22

What influences do stakeholders have kn a buisness(4)

Answer 22

Employees can change the standard of their work

Customers can choose weather or not to buy goods or services

Local community
Petition against the company

Suppliers can change their prices

Question 23

What is the impact of employeed in an organisation

Answer 23

If quality is poor customers will go elsewhere which will effect sales

Question 24

What is the impact of banks in an organisation

Answer 24

If a buisness does not get the loan they require yhey might nkt be able yo expand with could lead to sales not being as high as hoped

Question 25

Whta is the impact of customers in a organisation

Answer 25

If customers go elsewhere than profits will fall

Question 26

What is the impact of suppliers in an organisation

Answer 26

If prices increase the price of the product the buisness is selling may increase with could result in customers going to competitions for goods.

Question 27

What is an impact of local community in an organisation

Answer 27

If a complaint is upheld it may mean the buisness had to close

Question 28

What is an impact of the government on an organisation

Answer 28

Higher tax rates mean higher wage bill for a buisness leading yo a reduction in profits

Question 29

Why start a buisnes plan

Answer 29

It helps a buisness divide whether its worthwhile going ahead with the buisnes idea

Question 30

What goes into a buisnes plan

Answer 30

General details about the buisness e.g what type of ownership
Name and location

Human recorses e.g
Who are the key staff members and their positions skills and experiences

The product e.g what product(s) are provided

Premises and equipment
E.g where the buisness will be based
Equipment required

The market
E.g results if market research
Who is the target market

Finance
E.g Who are the investors
Estimated cash flow
Costs and expected sales

Question 31

2hy is good customer service important for a buisness yo succeed

Answer 31

Customers will go to competition if they don’t get good sevice

Question 32

How do buisness give good customer service

Answer 32

Ensure good quality after sales service

Have a customer complaints procedure

Question 33

How is customer service mesured

Answer 33

A survey or questionnaire

Emails customers can leave reviews

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