Unit 1.1 - Business activity

Question 1

Define goods

Answer 1

Goods are physical items such as a bed or chair

Question 2

Define services

Answer 2

Services are something done for you by someone else such as an electrician

Question 3

Define wants

Answer 3

Something that you would like to have such as designer clothes

Question 4

Define needs

Answer 4

Needs are something you must have to survive such as food or shelter

Question 5

Identify and define the business sectors (3)

Answer 5

Primary - obtaining raw materials
Secondary - manufacture goods from raw materials
Tertiary - provides services

Question 6

Identify and describe the factors of production (4)

Answer 6

Capital - machinery and equipment
Enterprise - organising and ideas
Labour - workers
Land - materials and the physical location

Question 7

Define opportunity cost

Answer 7

Cost of the choice made, it is what you can’t do as you have chosen something else

Question 8

Identify the different entrepreneur objectives (6)

Answer 8

Earn more than current job
Leave uninteresting job
Spot a gap in the market
Be their own boss
Hobby or interest
Flexible working hours

Question 9

Features of a good entrepreneur (4)

Answer 9

Hardworking
Organised
Innovative
Risk taker

Question 10

Define entrepreneur

Answer 10

Someone who has an idea for a business and starts a business with the idea