Business In The Real World

Question 1

Business

Answer 1

• A business is an organisation
which trades to make money,
these come in all shapes and sizes

Question 2

Product

Answer 2

• A product is anything that is capable of satisfiying customer needs its tangible and can be touched

Question 3

Service

Answer 3

A service is an act that a business person carries out for you in exchnage for money

Question 4

Land

Answer 4

Somewhere to produce goods

Question 5

Labour

Answer 5

People to work in the business

Question 6

Captial

Answer 6

Money to get the business started

Question 7

Enterprise

Answer 7

This is the drive or motivation from the owners to start a business

Question 8

4 factors of production

Answer 8

Land
Labour
Capital
Enterprise

Question 9

Opportunity cost

Answer 9

When making important decisions in business the cost of not selecting an alternitive is an opportunity cost

Question 10

Reasons for strting a business

Answer 10

To produce goods
To supply a service
To distribute prodcuts
To fulfil a business opportunity
Providing a good or service

Question 11

Social enterprise

Answer 11

Is a business which has the objetive of trading to help people or the planet rather than making a profit

Question 12

How can social enterprises help people

Answer 12

Aim to tackle the effects of poverty
Provide jobs and tackle unemployment
Help children with a social need
Tackle the issue of an aging population
Help the homeless
Education and training inatiatives

Question 13

How can social enterpises help the planet

Answer 13

To reduce pollution
To takle deforestation
Tohalt climate change

Question 14

Primary sector

Answer 14

Extracts raw materials from the planet

Question 15

Secondary setor

Answer 15

Goods are manufactured from raw materials into finished goods

Question 16

Teritary sector

Answer 16

All the support services for business

Question 17

Enterprise

Answer 17

A company or business

Question 18

Entrepeneur

Answer 18

A person who starts a business and takes on financial risk in the hope of making a profit

Question 19

Characteristics of an enterpreneurs

Answer 19

Hardworking
Initiative
Organised
Risk taker

Question 20

Entrepreneur objectives

Answer 20

To be your own boss
Flexiable hours
To pursue an interest
To earn more money
To identify a gap in the market
Dissatisfaction with current job

Question 21

Dynamic business enviroment

Answer 21

Business faces a constantly changing environment-to which it must adapt

Question 22

Inflation rates

Answer 22

Is the rate of increase in prices for goods and services

Question 23

Interest rates

Answer 23

The costs of borrowing

Question 24

Unemployment rates

Answer 24

Is the percentage of people in the labour force that is unmemployed at any given time

Question 25

Exchange rates

Answer 25

The costs of one currency expressed in the terms of another

Question 26

Employment laws

Answer 26

Regulates the relationship between employers and employees

Question 27

Health and saftey laws

Answer 27

To require employers and employees to not put others or themselfs in danger.

Question 28

Counsumer laws

Answer 28

Any piece of government legislation designed to protect consumers from pooor qualitu prodcuts and poor business practices

Question 29

Sole trader

Answer 29

Is a business which only has one owner

Question 30

Types of sole traders

Answer 30

Small shop Plumber Electrician Cleaner Hairdresser Website designer

Question 31

Advantages of being a sole trader

Answer 31

Easy to set up Making decisions quickly Less capital needed All profits kept by the owner Can offer attention to customers Dont have to make any information They are thier own boss

Question 32

Disadvantages of being a sole trader

Answer 32

Unlimated liability Hard to raise money Dont have any economies of scale No one to take over for ill-health No one to share ideas with Only one set of skills Can feel isolated

Question 33

Unlimated liability

Answer 33

The business and the owner are one legal entity

Question 34

Partnership

Answer 34

All just one owner of the business

Question 35

Partnership jobs

Answer 35

Doctors Dentist Accountants Vets Solicitors

Question 36

Partnership advantages

Answer 36

Easy to set up Small capital is needed Easier to raise extra capital than sole Profits go to partners Good worker realtionships Partners can hare problems and decisions

Question 37

Partnership disadvantages

Answer 37

Unlimated liability Trust and reliability can be a issue Partners can have disagreement Sharing profits Control of business

Question 38

Limated liability

Answer 38

Limited liability protects a business owner’s personal funds from being used to pay business debts.