Unit 1

Question 1

What is a business?

Answer 1

It is an organisation that is used to provide a good or service for customers to purchase.

Question 2

What is a good and an example

Answer 2

they are physical tangible things which can be seen and touched
e.g car

Question 3

what is a service and an example

Answer 3

something done for others. It cannot not been seen and is intangible
e.g hairdressers

Question 4

what does it mean if it’s durable and an example

Answer 4

a good or service which will last a long period of time

e.g washing machine

Question 5

What does it mean if it’s non durable and an example

Answer 5

a good or service which will last a short period of time

e.g newspaper

Question 6

What does it mean by a consumer and an example

Answer 6

It’s a good or service consumed by a person to satifsy their needs and wants
e.g food

Question 7

what does it mean by capital and an example

Answer 7

goods and services consumed by businesses so they can provide other goods and services
e.g vehicles

Question 8

What are the 3 main stages of production process?

Answer 8

Input
process
output

Question 9

Describe the 1st stage of production and an example

Answer 9

Businesses gather raw materials that are required to male the good or service
E.g wheels, engine for a car

Question 10

Describe the 2nd stage of production and an example

Answer 10

Combine raw materials to provide a good or service

E.g build the body of the car

Question 11

Describe the 3rd stage of production and an example

Answer 11

Businesses have created the final good or service ready to be sold.
E.g Finished working car

Question 12

What are the 4 factors of production?

Answer 12

Capital
Enterprise
Land
Labour

Question 13

Describe capital

Answer 13

Is the money invested in business in order to get equipment. It’s paid through interest and is man made

Question 14

Describe enterprise

Answer 14

is the organisation of the other 3 factors to take risks and turn ideas into a good or service. It earns products

Question 15

Describe labour

Answer 15

It is the people that carry out the work needed to provide a good or service

Question 16

Describe land

Answer 16

is the earth and all the natural resources that is needed to produce a good or service.
e.g wood for a shop

Question 17

Describe how production creates wealth

Answer 17

The total value of the good should be more than the raw material. This is called value added

Question 18

How to you calculate the value added

Answer 18

output value - input value

Question 19

what is the first stage of the business cycle?

Answer 19

consumers have needs and wants

Question 20

What is the second stage of the business cycle?

Answer 20

Businesses identify consumers needs and wants

Decide to make goods and services to satisfy them

Question 21

What is the third stage of the business cycle?

Answer 21

Businesses employ the factors of production

The desired good and services increase wealth

Question 22

what is the fourth stage of the business cycle?

Answer 22

Wages from employment allow consumers to consume goods and services

Question 23

Why does the business cycle repeat itself over and over again?

Answer 23

Consumers unlimited wants will have created new things that businesses could now begin to produce

Businesses provide goods and services for consumers needs and wants

Question 24

Why does the business cycle affect the work of businesses

Answer 24

for it to work it must satisfy consumers unlimited wants

If not the cycle will be broken and consumers begin to use different business to satisfy their particular wants

Question 25

what is the primary sector?

Answer 25

exploiting natural resources from land,sea and air

Question 26

what is the secondary sector?

Answer 26

manufacturing and construction of buildings and schools

Question 27

what is the tertiary sector?

Answer 27

it provides a service such as bus travel and restaurants

Question 28

what is the quaternary sector?

Answer 28

knowledge based jobs and have specialised skills. Includes education and blogging

Question 29

what are examples of private sectors?

Answer 29

sole traders
partnerships
private limited companies
public limited companies
franchise

Question 30

What does private sectors aim to do?

Answer 30

maximise profits
innovative ideas into successful businesses
expand the business

Question 31

who is the private sector

• owned by
• controlled by
• financed by

Answer 31

Controlled by board of directors
owned by shareholders
limited liability
financed by shares

Question 32

what does the public sector aim to do?

Answer 32

provide a high quality service to everyone in the country

Question 33

Who is the public sector

• owned by
• controlled by
• financed by

Answer 33

Government owned
financed by taxes
controlled by government

Question 34

Examples of public sectors?

Answer 34

police
schools
hospitals

Question 35

What does the voluntary sector aim to do?

Answer 35

provide support for worthy causes
promote awareness
provide best service possible

Question 36

Who is the voluntary sector

• owned by
• controlled by
• financed by

Answer 36

Controlled by trustees
financed by donations
not owned by trustees can be liable

Question 37

what do you have to think about for sectors of economy ?

Answer 37

Ownership
decision making
financed
risk

Question 38

how to satisfying consumers?

Answer 38

find out their wants 
design suitable products
products to a proper standard 
treat them in a positive way
manage the money of the business

Question 39

Identify specialised workers of businesses

Answer 39

Marketing
operations
human resource management
finance

Question 40

Are all businesses the same?

Answer 40

they are different as they are managed and run different

Question 41

What is a mission statement?

Answer 41

Businesses record their specific activities to help people understand what it does, think positively think about