ch1 bus. activity

Question 1

what is Business Activity?

Answer 1

its the process of producing goods and services to satisfy the customers needs and wants

Question 2

define Needs

Answer 2

goods and services that are essential for living for example shelter water and clothings

Question 3

define Wants

Answer 3

Goods and services that people would like to have but are not essential for living. For example tv headphones phones etc

Question 4

what are the Factors of Production?

Answer 4

• Capital – Money required for a business to produce items
• Enterprise – Entrepreneurs with skills required to create a business.
• Land – Natural resources from nature
• Labour – human resources used in production

Question 5

what is Scarcity?

Answer 5

when unlimited wants exceed limited resources this is due to the lack of sufficient products to satisfy all wants

Question 6

what is Opportunity Cost?

Answer 6

is the next alternative left out when making a decision.

Question 6

define Specialization?

Answer 6

when people and businesses concentrate in what they are best at.

Question 7

what is Division of Labour?

Answer 7

is spitting up the production process into tasks and each worker specializes in one task

Question 8

What are ADV of Division of Labour

Answer 8

• workers will be experts in their fields and increase the quality of the products produced
• workers can improve further on their skill by repeatedly carrying out the same task
• skilled employees often will gain more than the unemployed
• decrease in the cost of production due to higher efficiency

Question 9

What are DISADV of Division of Labour

Answer 9

• Doing the same job for many years can cause boredom and stress
• boredom of workers could lead to lower efficiency and output
• Production may stop if one of the workers is absent

Question 10

what is Added Value?

Answer 10

• the difference between selling price and cost of raw material

Question 11

State and Explain ways to increase added value

Answer 11

• Branding - done by advertising and promotion to make customers feel they should buy this product
• Excellent services and quality - people are more willing to pay for personalized services
• Product features - products having more features than competitors can be sold with higher prices
• Convenience - pay higher prices for products that saves their time and effort