Business In The Real World - Unit 1

Question 1

what do businesses sell to customers willing to pay?

Answer 1

goods and services

Question 2

what are goods and services?

Answer 2

goods - physical items like books or furniture

services - actions performed by other people to aid the customer e.g barbers and plumbers provide services

Question 3

what is a need?

Answer 3

things that you can’t live without (water and food)

Question 4

what are wants?

Answer 4

things you would like but can live without (holidays and jewellery)

Question 5

what are the main reasons a business would be set up?

Answer 5

• when someone starts providing goods or services they think customers will want to pay for
• to distribute goods e.g they buy from a manufacturer and then sell them onto other businesses or customers
• to benefit others, they could provide a service or good for example businesses organise volunteers to go and help people. These businesses are not-for-profit organisations
• because they see a business opportunity that they want to fulfil. This is an investment to allow someone to start a business, for example someone may buy rights to a franchise where they start their business under the name of another company

Question 6

what are the three sectors of the economy?

Answer 6

the primary sector, the secondary sector, and the tertiary sector

Question 7

what does a primary sector produce?

Answer 7

raw materials - any natural resources which are used to make goods and services

Question 8

where are primary sectors taken from?

Answer 8

they are extracted from the ground. The mining industry provides coal, oil, gas, and metals like iron. The quarrying industry provides stone

Question 9

primary sectors can be ______ or _______. The ______ industry grows food (both animals and crops are natural resources). The _____ industry “collects” fish from the sea

Answer 9

grown
collected
farming
fishing

Question 10

what does the secondary sector do?

Answer 10

manufactures goods

Question 11

secondary sectors turn ___ materials into finished goods. For example, a _______ factory turns raw materials such as ______ and ____ into chocolate

Answer 11

raw
chocolate
cocoa
milk

Question 12

what industries are in the secondary sector?

Answer 12

building and construction

Question 13

what does the tertiary sector provide?

Answer 13

services

Question 14

some firms in the tertiary sector provide services for other _____ - like warehousing and advertising

Answer 14

businesses

Question 15

some firms in the tertiary sector provide services for ______ - like hairdressers, shops and restaurants

Answer 15

consumers

Question 16

financial services like banking and insurance are used by who?

Answer 16

both businesses and consumers

Question 17

what does enterprise mean?

Answer 17

either a business or organisation, or the personal qualities that mean you can see and take advantage of new business opportunities

Question 18

enterprise involves ______ new business opportunities, and then __________ of them. There’s always a ____ of ______, but the _____ for a successful enterprise activity is usually profit

Answer 18

identifying
taking advantage
risk
failure
reward

Question 19

Enterprise can involve starting up a ________, or helping an existing one to _____ by coming up with new _____

Answer 19

new business
expand
ideas

Question 20

what is an entrepreneur?

Answer 20

someone who takes on the risks of enterprise activity

Question 21

what are the possible reasons for someone to become and entrepreneur?

Answer 21

• financial reasons, if the business is successful, the entrepreneur could earn money which could give them a better quality of life
• when they identify a gap in the market e.g they think of a good or service no one else is providing
• want the independence of being their own boss, they can decide what they do each day, and choose how the business will be ran. More flexible working hours, easier to fit work around other commitments
• follow an interest, being interested in what they do can give the job satisfaction
• simply dissatisfied with their current job

Question 22

a successful entrepreneur is likely to have most of what characteristics?

Answer 22

• hard working, entrepreneurs often work long hours and alone, so have to do different tasks e.g accounting, business planning, sales and marketing
• organised, have to be organised to keep on top of day to day tasks as well as planning for the future e.g make sure to be prepared for meetings, in control of finance
• innovative to come up with new ideas and think of solutions to problems
• willingness to take a risk, lots of unknowns are involved in running a business. Entrepreneurs will give up their job and invest money they could lose if the business fails

Question 23

what can a business write to figure out if the business is a good idea roughly?

Answer 23

a business plan

Question 24

what are the four factors of production?

Answer 24

land, labour, capital and enterprise

Question 25

what does land include (4 factors of production)?

Answer 25

1. non-renewable resources such as natural gas, oil and coal 2. renewable resources like wind or tidal power or wood from trees 3. materials extracted from mining e.g diamonds and gold 4. water 5. animals found in an area

Question 26

4 factors of production nearly all things that fall under the category of 'land' are _____ - there aren't enough natural resources to satisfy the ______ of everyone

Answer 26

scarce | demands

Question 27

what is labour?

Answer 27

the work done by the people who contribute to the production process

Question 28

labour - 4 factors of production different people can have different levels of _____, ______ or ______. These factors can make some people more 'valuable' or productive in the workplace than others

Answer 28

experience, education, training