Unit 1 - Understanding business Flashcards
1
Q
What is the role of a business?
A
- Provide goods and services
- Fulfil peoples needs and wants
2
Q
Describe a durable good
A
- Items which we use again and last for a long time
3
Q
Describe a non durable good
A
- Items we normally use once or are used quickly
4
Q
State the 4 factors of production
A
- Capital
- Enterprise
- Land
- Labour
5
Q
Describe the factors of production
A
- (Capital) - the man made resources a business owns
- (Enterprise) - The will of the owner to make the business successful.
- (Land) - The natural resources a business uses
- (Labour) - the human resources required by a business.
6
Q
Identify some skills of an entrepreneur
A
- Good communication skills
- Effective decision making skills
- effective leadership skills
7
Q
State some qualities of an entrepreneur
A
- Hardworking
- Determination
- Enterprising
8
Q
Identify the 3 sectors of Industry
A
- Primary
- Secondary
- Tertiary
9
Q
Describe the 3 sectors of industry
A
- (primary) - Businesses grow or extract natural resources from the ground
- (Secondary - Businesses manufacture their products
- (Tertiary) - Businesses provide services
10
Q
State the 3 sectors of the Economy
A
- Private Sector
- Public Sector
- Third Sector
11
Q
Describe the 3 sectors of the Economy
A
- (Private) - Business owned and controlled by private individuals
- (Public) - Businesses owned and controlled by the government
- (Third Sector) - Businesses set up to help a particular cause by raising money through donations
12
Q
What are the 3 types of Private Sector Organisations
A
- Sole Traders
- Partnerships
- Private Ltd Companies
13
Q
Describe the benefits of a sole trader
A
- Controlled by one person
- Easy and cheap to set up
- Owner keeps all profits
14
Q
Describe the disadvantages of a sole trader
A
- No one to share decision making with
- Hard to take time off
- unlimited liability
15
Q
Describe the advantages of a partnership
A
- Workload can be shared
- Decision making is shared
- Easier to take time off
