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1
Q

What are needs?

A

Essential for survival (e.g., food, shelter, clothing)

Needs are fundamental requirements that must be met for basic functioning.

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2
Q

What are wants?

A

Desires beyond basic survival (e.g., luxury items, gadgets)

Wants are not necessary for survival but enhance quality of life.

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3
Q

What is scarcity?

A

Occurs when demand exceeds the supply of resources

Scarcity leads to the need for choices in resource allocation.

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4
Q

Define goods.

A

Tangible, physical items (e.g., clothing, food, electronics)

Goods can be touched, seen, and owned.

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5
Q

What are consumer goods?

A

Goods for personal use (e.g., clothes, food)

These items are purchased by individuals for consumption.

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6
Q

What are capital goods?

A

Used to produce other goods (e.g., machinery)

Capital goods are essential for the production process in businesses.

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7
Q

Define durable goods.

A

Long-lasting items (e.g., cars, furniture)

Durable goods are items that have a long lifespan.

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8
Q

What are non-durable goods?

A

Short-lived items (e.g., food, disposable products)

Non-durable goods are consumed quickly and need to be repurchased regularly.

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9
Q

What are services?

A

Intangible and cannot be stored or owned (e.g., healthcare, entertainment)

Services are activities performed to satisfy needs and wants.

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10
Q

What are personal services?

A

For individual needs (e.g., haircuts, education)

Personal services cater directly to consumers.

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11
Q

What are business services?

A

For business operations (e.g., consulting, IT)

Business services support the functioning of companies.

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12
Q

What are public services?

A

Provided by the government (e.g., law enforcement, transportation)

Public services are intended to benefit the community as a whole.

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13
Q

List the differences between goods and services.

A
  • Tangibility: Goods are physical; services are intangible
  • Perishability: Goods can be stored; services are consumed immediately
  • Ownership: Goods transfer ownership; services provide access, not ownership
  • Production/Consumption: Goods are produced, stored, and then consumed; services are produced and consumed simultaneously
  • Quality Measurement: Goods have standardized quality; services’ quality can vary

Understanding these differences is crucial for business operations and marketing strategies.

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14
Q

What is opportunity cost?

A

The cost of forgoing the next best alternative when deciding.

Example: If a business hires new employees, the opportunity cost could be not purchasing new machinery.

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15
Q

What is SDG 12?

A

Goal 12 of the Sustainable Development Goals (SDGs) aims to promote sustainable consumption and production patterns.

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16
Q

What are the focuses of SDG 12?

A
  1. Reducing waste generation by encouraging recycling and sustainable resource use.
  2. Minimizing the environmental impact of consumption by promoting more efficient use of resources.
  3. Ensuring businesses adopt sustainable practices and reduce their carbon footprint.
  4. Supporting the development of policies and behaviours that promote responsible consumption globally.
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17
Q

What is required to achieve SDG 12?

A

Balancing needs and wants to promote sustainable practices that minimize environmental harm, ensure equitable resource distribution, and foster long-term social and environmental well-being.

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18
Q

What are the factors of production?

A

The resources required to produce goods and services, categorized into four main types.
-Land
-Labour
-Capital
-Entrepreneurship

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19
Q

What are the four main types of factors of production?

A
  1. Land: Natural resources like land for building factories, extracting resources, growing crops, or using the ocean for fishing.
  2. Labour: The people who work in the production of goods and services.
  3. Capital: Physical capital like machinery, tools, and equipment, or human capital like the knowledge, skills, and experience of employees.
  4. Entrepreneurs: Individuals who take risks to start businesses and generate new ideas.
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20
Q

What are the sectors of production?

A
  1. Primary Sector: Involves extracting raw materials and natural resources (e.g., farming, mining, fishing).
  2. Secondary Sector: Transforms raw materials into finished goods (e.g., manufacturing, construction).
  3. Tertiary Sector: Provides services (e.g., healthcare, banking, retail).
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21
Q

How are the sectors of production interdependent?

A

The primary sector supplies raw materials to the secondary sector, and the secondary sector produces goods for the tertiary sector to sell or service.

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22
Q

What is the Chain of Production?

A

The Chain of Production shows how each stage adds value, linking the primary, secondary, and tertiary sectors together in the production process.

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23
Q

What is a State-Controlled Economy?

A

A State-Controlled Economy (Command Economy) is where the government controls production, distribution, and resource allocation.

Examples: North Korea, Cuba, Venezuela, China, Vietnam.

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24
Q

What are the advantages of a State-Controlled Economy?

A

Advantages include prioritizing needs, low inequality, low unemployment, and a common good focus.

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25
What are the disadvantages of a State-Controlled Economy?
Disadvantages include rigidity, lack of consumer choice, inefficiency, and no competition.
26
What is a Free Market (Capitalist Economy)?
A Free Market (Capitalist Economy) is driven by private businesses responding to consumer demand and profit motives.
27
What are the advantages of a Free Market Economy?
Advantages include encouraging entrepreneurship, competition, innovation, and efficient price matching.
28
What are the disadvantages of a Free Market Economy?
Disadvantages include being profit-driven, potential for monopolies, overproduction, and neglect of unprofitable goods/services.
29
What is a Laissez-Faire Economy?
A Laissez-Faire Economy features minimal government intervention, aligning with free-market capitalism.
30
What is a Mixed Economy?
A Mixed Economy combines market and planned economies, with both private businesses and government regulation/intervention. ## Footnote Example: Malta.
31
What are the advantages of a Mixed Economy?
Advantages include innovation, competition, social welfare, and government addressing market failures (e.g., unsafe products, monopolies).
32
What are the disadvantages of a Mixed Economy?
Disadvantages include potential monopolies, higher debt, and mismanagement leading to poverty.
33
What is a Subsistence Economy?
A Subsistence Economy focuses on meeting basic needs (food, clothing, shelter) often without money, relying on natural resources like hunting and agriculture.
34
What are the advantages of a Subsistence Economy?
Advantages include being environmentally less harmful and employing traditional and sustainable practices.
35
What are the disadvantages of a Subsistence Economy?
Disadvantages include vulnerability to climate changes such as droughts and floods.
36
What are Aims in a business context?
Aims are broad, general intentions that provide direction (e.g., 'Maria's aim is to be happy').
37
What are Goals in a business context?
Goals are high-level, non-measurable achievements (e.g., 'Maria's goal is to start a business and make a profit').
38
What are Objectives in a business context?
Objectives are specific, measurable, achievable, realistic, and time-bound (SMART) targets (e.g., 'Mary's business will make a profit by the end of 2021').
39
What are key business goals?
Key business goals include market penetration, survival, attracting clients, generating sales, and making a profit.
40
How does a good reputation benefit a business?
Achieving a good reputation helps attract talent, satisfy customers, and outperform competitors.
41
What do Employees seek in a business?
Employees seek good salaries and job security.
42
What do Managers aim to offer?
Managers aim to offer competitive salaries and retain talent.
43
What do Trade Unions ensure?
Trade Unions ensure fair work conditions.
44
What do Customers want from a business?
Customers want quality products and services.
45
What does the Government focus on in business?
The Government focuses on low unemployment, business profits, and quality of life.
46
What are conflicting interests in business?
Conflicting interests include Employees and Trade Unions wanting better conditions, while shareholders prefer lower costs for higher profits.
47
What do Customers and Entrepreneurs want?
Customers want quality products/services at low prices, while entrepreneurs want to gather profits from them.
48
What are the benefits of Business Growth?
Growing businesses can access more funds, influence the market, invest in research, and benefit from economies of scale.
49
What are Economies of Scale?
Economies of Scale refer to the cost advantages that businesses experience as they increase production, leading to a decrease in average cost per unit.
50
What is the relationship between higher production and average costs?
Higher production leads to lower average costs. ## Footnote Fixed costs are spread across more units.
51
What are fixed costs?
Fixed costs do not change regardless of how much a business produces. ## Footnote Examples include rent, machinery, or salaries for employees.
52
How do fixed costs affect production costs?
When a business increases its production, fixed costs are distributed over a larger number of units, resulting in a smaller cost per unit.
53
How do larger businesses benefit from economies of scale?
Larger businesses can negotiate better deals on supplies or use more efficient technologies, making them more competitive by reducing costs.
54
What is a mixed economy?
In a mixed economy, both Private and Public Enterprises exist.
55
What is a Private Enterprise?
A Private Enterprise is owned by private individuals or groups, operating for profit.
56
What are Sole Traders?
Sole Traders are businesses owned by one person who provides all the capital and keeps all profits.
57
What are Partnerships?
Partnerships are businesses owned by two or more people.
58
What are Private Limited Companies?
Private Limited Companies are small, privately owned companies with shares not sold to the public.
59
What are Public Limited Companies?
Public Limited Companies are large companies with shares sold to the public.
60
What is a Public Enterprise?
A Public Enterprise is owned and operated by the government to provide essential services for public welfare, like healthcare and transportation.
61
What is Limited Liability?
Limited Liability means the owners' personal assets are protected; they only lose the money invested in the business.
62
What is Unlimited Liability?
Unlimited Liability means the owners are personally responsible for all business debts, risking their personal assets.
63
What is the difference between Limited and Unlimited Liability?
Limited liability protects personal assets, while unlimited liability exposes owners to greater financial risk.
64
What are the advantages of being a Sole Trader?
Advantages include simplicity to set up, independence, and close customer contact.
65
What are the disadvantages of a sole trader?
Unlimited liability (personal assets at risk), limited capital and growth potential.
66
What is a partnership?
Owned by two or more people who share responsibilities and profits.
67
What are the advantages of a partnership?
Shared capital and risks, easy to form.
68
What are the disadvantages of a partnership?
Unlimited liability for at least one of the partners, potential conflicts, limited on capital.
69
What is a Private Limited Company (Ltd)?
Owned by shareholders, usually family or a small group.
70
What are the advantages of a Private Limited Company?
Limited liability, more capital access, better business continuity.
71
What are the disadvantages of a Private Limited Company?
Restricted share transfer, needs to publish financial statements, harder to raise capital than public companies.
72
What is a Public Limited Company (PLC)?
Shares are traded publicly on the stock market.
73
What are the advantages of a Public Limited Company?
Limited liability, large capital access, economies of scale.
74
What are the disadvantages of a Public Limited Company?
Expensive setup, public scrutiny, less control over shareholders.
75
What is the key difference in liability between sole traders, partnerships, and limited companies?
Sole traders and partnerships have unlimited liability, while limited companies (Ltd & PLC) offer limited liability.
76
How do private and public companies differ in capital raising?
Private companies raise capital from a few investors, whereas public companies can raise large sums by offering shares to the public.
77
What is the continuity difference between sole traders, partnerships, and limited companies?
Private and public companies have more continuity than sole traders and partnerships.
78
What is a co-operative?
An organization owned and controlled by its members who work together for mutual benefit.
79
What are consumer co-operatives?
Owned by consumers who buy goods or services, focusing on meeting the needs of members.
80
What are producers' co-operatives?
Run by producers, helping members process, market goods, and access resources.
81
What is franchising?
A business model where a franchisor allows a franchisee to use its brand, products, and techniques for a fee.
82
What does the franchisor provide in a franchising model?
Training and marketing support.
83
What does the franchisee pay for in a franchising model?
The right to operate using the franchisor's established brand and systems.

Business (5 decks)

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