Understanding Business

Question 1

What is Capital?

Answer 1

the money the business is started with and things like machinery

Question 2

Enterprise

Answer 2

organizing the other factors of production and taking the risk of producing goods and products

Question 3

Land

Answer 3

all natural resources, from mineral deposits to the site of the factory

Question 4

Labour

Answer 4

all human resources

Question 5

Cycles of business

Answer 5

1)Wants
2)Identification of wants
3)production
4)consumption and satisfaction of wants
cycle begins again

Question 6

Wants

Answer 6

People in society have wants which they wish to satisfy

Question 7

identification of wants

Answer 7

businesses recognise that there are wants which can be satisfied

Question 8

production

Answer 8

businesses combine inputs to produce an output of the required goods or services

Question 9

Primary sector

Answer 9

comprises businesses involved in taking natural resources from the land, that is agriculture and extraction industries such as coal mining

Question 10

secondary sector

Answer 10

consists of those businesses which use resources from the land- manufacturing and construction

Question 11

tertiary

Answer 11

is made up of all the firms which provide services rather than goods- banking/hairdressers where are service is provided but no goods change hands

Question 12

Quaternary

Answer 12

consists of businesses providing information and knowledge-based services such as-ICT, Consultancy, R&D