Ems

Question 1

capital

Answer 1

goods,money,property
used to make an income
buying,selling,producing

Question 2

5 Types of Capital

Answer 2

fixed-goods that satisfy needs+wants eg tools

financial-source of funds eg borrow money

share- money invested by owner

working- money to run business day to day

start up- needed to start a business

Question 3

Assets

Answer 3

items

monetary value and owned by business

Question 4

2 types of assets

Answer 4

non current- cant be converted to cash- 1 yr
eg land

current-can be converted to cash- 1 yr
eg cash in bank

Question 5

liability

Answer 5

money owed to creditors

includes capital borrowed

Question 6

2 Types of liabilities

Answer 6

non-current- long term costs
eg loan

current- short term costs
eg bank overdraft

Question 7

Expences

Answer 7

payment for services and goods
buys to keep running
decrease OE
items have no lasting value

Question 8

2 types of expences

Answer 8

fixed- pay every month
not dependent on product
overhead

non/fixed- relate to product/service
increase-more P/S provided
decrease- fewer P/S provided

Question 9

income

Answer 9

business earns
positive effect on persons net worth
increase asset
decrease liability 
increase profit+OE

Question 10

profit

Answer 10

money made
taking all income-expense
aim- make profit
profit motive

Question 11

Inelastic

Answer 11

QD UNRESPONSIVE to PI
big PI- not lower QD
addictive products+necessities

Question 12

Elastic

Answer 12

QD RESPONSIVE to PI
small PI- QD lower alot
close substitutes

Question 13

Factors-Elasticity

Answer 13

substitutes
income
addictive
type