Unit 1.1

Question 1

Factors of Production

Answer 1

Land
Labour
Capital
Entrepreneurship/Intrapreneurship

Question 2

Primary Sector

Answer 2

Businesses are involved with the extraction, harvesting and conversion of land (i.e. natural resources) as a factor of production e.g. agriculture, fishing, mining, etc.

Question 3

Secondary Sector

Answer 3

Businesses involved in using raw material and other resources for the manufacturing or construction of finished and useable products e.g. construction firms, clothes manufacturers, pharmaceutical companies, etc.

Question 4

Tertiary (Service) Sector

Answer 4

Businesses involved in providing services to their private and corporate customers, e.g. retailing, education, entertainment, etc.

Question 5

Quaternary (IT) Sector

Answer 5

Focused on research and development, business consulting, and information gathering, which is then sold.

Question 6

problems for a business to fail

Answer 6

Lack of Capital
Legalities
Poor Cash Flow Production Problems
Marketing Problems
High Production Cost
Unestablished customer base
Poor Location
Management Problems
External Influences