unit one

Question 1

what are the 4 factors of production?

Answer 1

land, labour, capital, enterprise

Question 2

an example for each of the 4 factors of production?

Answer 2

a office block, or a farm would be land.
labour would be the work force you have.
capital is anything to do with money, for example the machineary you have.
enterprise is the thing that brings them all together.

Question 3

why is business location important?

Answer 3

its important becuase you need to be close to the target market.
its also important because you need to be accessable to the what you are selling or you need to be able to send your stuff to be sold.

Question 4

what should a business plan contain?

Answer 4

the business costs,
the recources needed,
the workers,
target market,
profit forecast,
business objecives,
business aims.

Question 5

why are business plans important?

Answer 5

business plans are important because they focus the business aproach and mean that everyone knows what they are meant to be doing.

Question 6

what are the two types of costs?

Answer 6

variable costs, these change depending on how well the business does e.g. staff bonuses
fixed costs, these dont change no matter how well the business does e.g. rent

Question 7

what is non operating revenue?

Answer 7

The revenue from anything that is not your sale an example of this is investments.

Question 8

what is operating revenue?

Answer 8

the revenue you get from sales

Question 9

examples of variable costs

Answer 9

how much you order from your supplier
how many staff you take on
how much bonus you give to your staff
tax

Question 10

example of fixed costs

Answer 10

rent

Question 11

how to work out total revenue?

Answer 11

oporating revenue + non operating revenue

Question 12

characteristics of an entrepreneur

Answer 12

Innovative
Risk taker
Hard worker
Organised
Determined
Persuasive
Leadership
Lucky

Question 13

what is an entrepreneur?

Answer 13

an entrepreneur is someone who takes a calculated risk by starting a business

Question 14

why would someone chose to start a business?

Answer 14

to make money,
to turn a hobby into a business

Question 15

what does GDP stand for

Answer 15

Gross Domestic Product

Question 16

Whats the diffrence between a good and a service

Answer 16

a good is something tangible where a service is an action which is non tangible.

Question 17

what is a service

Answer 17

a service is where you pay for the skills of somebody and its non tangible

Question 18

what is a good

Answer 18

a good is a tangible object you buy

Question 19

what are the three business sectors

Answer 19

Primary
Secondary
Tertiary

Question 20

What is done in the Primary sector

Answer 20

The primary sector is where raw materials are harvested, for example farming or a coal mine

Question 21

What is done in the secondary sector

Answer 21

The Secondary sector is where goods are manafactured or goods are bought and sold

Question 22

What is the Tertiary sector

Answer 22

The Tertiary sector is where a service is provided, E.G. banks ,teachers, docotors

Question 23

what is the public sector?

Answer 23

Public secotor – controlled by the government E.G state schools, hospitals and libraries (TAX run)

Question 24

what is the private sector?

Answer 24

private secotor – aim to make a profit, from small local businesses to large businesses.

Question 25

What is an LTD?

Answer 25

a LTD stands for private limted company this means only people allowed by the owner can buy shares and when someone wants to sell shares they have to sell them back to the owner.

Question 26

What is a PLC?

Answer 26

a PLC is a public limeted comapny and it means anyone who wants to buy shares can. owner has no control on who buys the shares

Question 27

what does Limited liability mean?

Answer 27

limited liability means that if the business gets in debt they cant make up that debt buy getting money from the share holders.

Question 28

what does unlimited liability mean?

Answer 28

unlimited liabilty means that if a company gets into debt they might go after the owners possesions to make up for the debt.

Question 29

what are the different types of Business ownerships

Answer 29

Private ltd company
Public ltd company.
Sole trader
Partnerships

Question 30

What is a sole trader

Answer 30

a sole trader is a single person going into business, its unlimited liability so its risky.

Question 31

what is a partnership

Answer 31

a partnership is a group of people between 2 - 20 people and its unlimited liability.
reasons for starting a partnership, is because you want to get other skilled people on your business.

Question 32

What are the diffrent ways of aquiring a business

Answer 32

merger and take over,
you have a normal take over
and a hostile takeover
also a joint venture

Question 33

What is a hostile take over

Answer 33

a hostile take over is where a company sells to another company not cuase they want to but cause they need to

this may happen cause one under cuts another company taking the customers and driving the other companies prices lower and drives one of the companies out of business

Question 34

what is a joint venture

Answer 34

a joint venture is when two comapnies work together or combine as a new to go into a new market.

Question 35

what is franchising

Answer 35

when you let other people open branches to carry the brand and sell products, you don’t own the branches, but they pay you a yearly fee and % of profit

Question 36

what are the ways of measuring growth

Answer 36

market share,
market capitalisation,
company size (how many employees)