business

Question 1

1 advantage of a physical market for buyer

Answer 1

see the product physically

Question 2

1 disadvantage of a physical market for buyer

Answer 2

time consuming

Question 3

1 disadvantage of a non-physical market for buyer

Answer 3

pay for shipping

Question 4

1 advantage of non-physical market for buyer

Answer 4

quicker

Question 5

1 advantage of a physical market for seller

Answer 5

able to show off product

Question 6

1 disadvantage of physical market for seller

Answer 6

costs to run a shop(rent)

Question 7

1 disadvantage of a non-physical market for seller

Answer 7

returns could be high

Question 8

1 advantage of non-physical market for seller

Answer 8

easy access

Question 9

what is a monopoly and what percentage of market share do they need?

Answer 9

a market dominated by one firm 25%

Question 10

percentage of market share needed for dominant monopoly

Answer 10

40%

Question 11

a competitive market has a ____ number of firms and a ___ prices

Answer 11

high, low

Question 12

a monopoly has ___ number of firms and ____ prices

Answer 12

low, high

Question 13

define economies of scale

Answer 13

the costs per unit of production decreases as volumes of production increases

Question 14

example of fixed costs

Answer 14

rent and machines

Question 15

a monopolistic competition has ____ sellers and has a _______ ability to control price

Answer 15

many, limited

Question 16

an oligopoly has a ___ large firms dominant market and has ____ ability to control price

Answer 16

few, some

Question 17

barriers to entry of competitive market

Answer 17

little

Question 18

barriers to entry of monopoly

Answer 18

subject to government regulation

Question 19

barriers to entry of monopolistic competition

Answer 19

few

Question 20

barriers to entry of oligopoly

Answer 20

many

Question 21

what are the 4 factors of production

Answer 21

Land, Labour, enterprise , capital

Question 22

what is land

Answer 22

NATURAL RESOURCES iron, wood and oil

Question 23

what is labour

Answer 23

educated, skilled not just quantity but quality

Question 24

what is enterprise

Answer 24

entrepreneurs organise factors of production and take risk. reward for risk is profit

Question 25

what is capital

Answer 25

goods used in the supply of other products e.g tech, machinery, natural resources leads to efficiency + production

Question 26

what is enterprice?

Answer 26

someone who uses their inititive to look for gaps in the market to set up the business.

Question 27

how to add value

Answer 27

buying materials in bulk and improving quality

Question 28

characteristics of entrepreneur

Answer 28

-risk taking -creative

Question 29

what is added value

Answer 29

difference between price of finished product/ service and cost of inputs involved making it

Question 30

what are the 3 sectors of economy

Answer 30

primary, secondary and Tertiary

Question 31

what is primary sector

Answer 31

activities using natural resources like farming, fishing and mining

Question 32

what is secondary sector

Answer 32

involves converting natural resources into finished goods (construction)

Question 33

what is Tertiary sector

Answer 33

provision of services (transport, financial services)

Question 34

advantages of a sole trader

Answer 34

your own boss and get to take own profit

Question 35

disadvantages of sole trader

Answer 35

unlimited liability, doesn't have continuity

Question 36

what is franchise?

Answer 36

business well known brand lets person set up using that brand

Question 37

advantages for franchiser

Answer 37

dont have to spend alot of money to expand

Question 38

disadvantages for franchiser

Answer 38

cost of supporting the franchise

Question 39

advantages for franchisee

Answer 39

lower risk,marketing and easier to obtain finance

Question 40

disadvantages for franchisee

Answer 40

profit is shared and less control

Question 41

what is cooperative?

Answer 41

business that is owned and run by its members, profits are shared between members rather than distributed to share holders

Question 42

advantages of cooperative

Answer 42

high quality of service and customer loyalty

Question 43

disadvantages of cooperative

Answer 43

weak managment and limited capital