Business Activity and influences on businesses :Unit 6-8

Question 1

1. What are the 5 factors affecting the appropriateness of different forms of ownership?

Answer 1

• growth
  -size
• the need for finance
• control
• Limited liability

Question 2

2. What are the 3 other factors affecting appropriateness of different forms of ownership?

Answer 2

• type of business/sole trader.
• Family businesses.
• Most multinationals want to grow.

Question 3

3. What are the 3 different sectors of a business activity?

Answer 3

• Primary sector
• Secondary sector
• Tertiary sector

Question 4

4. What is primary sector?

Answer 4

• production involving the extraction of raw materials from the earth.

Question 5

5. What is the secondary sector?

Answer 5

production involving the conversion of raw materials into finished and semi-finished goods.

Question 6

6. What is the tertiary sector?

Answer 6

tertiary sector is the production of service in the economy.

Question 7

7. What is an assembly plant?

Answer 7

-assembly plant is a factory where parts are put together to make a finished product.

Question 8

8. What are the 4 examples of primary sector?

Answer 8

• Agriculture.
• fishing.
• forestry.
• Mining and quarrying.

Question 9

9. What are the 6 examples of services?

Answer 9

• commercial services.
• financial services.
• household services.
• Leisure services.
• professional services.
• transport.

Question 10

10. What is interdependence?

Question 11

11. What is de-industrialization?

Answer 11

• de-industrialization decline in manufacturing.

Question 12

12. Why has the tertiary sector grown and the primary sector declined? (4)

Answer 12

• people may prefer to spend more of their income on services than manufactured goods.
• There is fierce competition in the production of manufactured goods from developing countries.
• Countries’ development of the public sector grows.
• Advances in technology.

Question 13

13. What are the 4 factors influencing location of a business?

Answer 13

• Proximity to the market.
• Proximity to labor.
• Proximity to materials.
• Proximity to competitors.

Question 14

14. What are brownfield sites?
    what are greenfield sites?

Answer 14

• brownfield sites are areas of land that were once used for urban development.
• greenfield sites were previously undeveloped areas of land, usually on the outskirts of towns and cities.

Question 15

15. What are the 4 natures of business activity? What factor would each of them prefer?

Answer 15

• services.
• office-based business.
• manufacturing and processing.
• agriculture.

Question 16

16. What are 3 benefits that the internet has on location of the business?

Answer 16

• lower costs.
• flexible working hours.
• access to a much larger market of potential customers.
• Easier to make decisions on location.

Question 17

17. What are 5 reasons governments try to influence location decisions?

Answer 17

• To avoid congestion.
• Minimize the impact businesses might have on local communities.
• To encourage manufacturers to locate where unemployment is high.
• Financial incentives to influence business choice of location.
• To attract foreign manufacturers into the country.

Question 18

18. What are assisted areas?

Answer 18

• assisted areas that are designed by a government as having economic problems and are targeted to receive support in a variety of forms.

Question 19

19. What viability studies?

Answer 19

-A viability study is a careful study of how a planned activity will work, how much it will cost, and what income it is likely to produce.

Question 20

20. What are trade blocs?

Answer 20

• trade bloc is a when a group of countries situated in the same region that join together and enjoy trade free of barriers.