Unit 1 and 2 Revision

Question 1

Unit 1.1 - Why do businesses exist?

Answer 1

To provide goods and services to the people.

Question 2

Unit 1.1 - What is an entrepreneur?

Answer 2

Someone with a business idea who then acts on it.

Question 3

Unit 1.1 - What are the 4 factors of production?

Answer 3

Land, Labour, Capital and Enterprise.

Question 4

Unit 1.1 - What are the 4 business sectors?

Answer 4

Primary, Secondary, Tertiary and Quaternary

Question 5

Unit 1.2 - What are PLC’s and LTD’s?

Answer 5

Public limited companies and private limited companies

Question 6

unit 1.2 - What is a sole trader?

Answer 6

Someone who owns and runs a business all by themselves

Question 7

Unit 1.2 - what is a shareholder?

Answer 7

Someone who owns a share of the total business

Question 8

Unit 1.3 - What is an aim?

Answer 8

A general goal for the business which benefits the business

Question 9

Unit 1.3 - What is an objective?

Answer 9

A target for businesses to complete which help achieve the aim.

Question 10

Unit 1.4 - What is a stakeholder?

Answer 10

Someone who has an interest in a business

Question 11

Unit 1.4 - Name a possible stakeholder

Answer 11

Customer, Employee, Supplier…etc

Question 12

Unit 1.5 - What two factors of production are kept in mind when choosing location of a business?

Answer 12

Land and Labour

Question 13

Unit 1.6 - What is a business plan?

Answer 13

A document including what the business does and anything they are considering doing in the future

Question 14

Unit 1.6 - Why is a business plan useful?

Answer 14

It can help coordinate the business and be used to support the business when enquiring about a loan from the bank

Question 15

Unit 1.7 - Why do businesses expand?

Answer 15

So that can they grow within their industry.

Question 16

Unit 1.7 - What is internal growth?

Answer 16

The growth of a business when selling its products

Question 17

Unit 1.7 - What is external growth?

Answer 17

The growth of a business when joining or buying another business

Question 18

Unit 2.1 - What can businesses use to communicate with stakeholders?

Answer 18

Tablets, Smartphones, PC’s, Cloud computing networks…etc

Question 19

Unit 2.1 - What is e-commerce?

Answer 19

Its when goods and services are sold using an electric system

Question 20

Unit 2.1 - What is m-commerce?

Answer 20

A part of e-commerce that involves the use of wireless devices

Question 21

Unit 2.2 - What does ethics mean in business?

Answer 21

A decision that a business makes which may be morally right or wrong

Question 22

Unit 2.3 - What is economy?

Answer 22

It is made up of consumers, businesses and governments who buy sell and produce.

Question 23

Unit 2.3 - What are the different types of goods a consumer chooses?

Answer 23

Inferior, Normal and Luxury

Question 24

Unit 2.4 - What is globalisation?

Answer 24

The process which world economies become steadily interconnected

Question 25

Unit 2.4 - What is inward investment?

Answer 25

When governments, businesses and individuals invest capital into another country helping to expand industries.

Question 26

Unit 2.5 - What is legislation?

Answer 26

A set of rules that govern the way society operates.

Question 27

Unit 2.5 - What are the three main laws that govern businesses?

Answer 27

Employment, Health and safety and consumer law

Question 28

Unit 2.5 - What are the employment laws?

Answer 28

National minimum wage and living wage, Equality act 2010, Pregnant employees, Holiday, Working hours

Question 29

Unit 2.6 - What is a market?

Answer 29

It is made up of buyers and sellers who exchange goods and services.