RETAKE TEST ANSWERS

Question 1

what are the 4 factors of production ?

Answer 1

LAND
LABOUR
CAPITAL
ENTERPRISE

Question 2

what is an example for LAND in the factors of production ?

Answer 2

vegetables , plants, fish , cotton harvested from a plant

Question 3

what is an example for LABOUR in the factors of production?

Answer 3

waiter, florist, fishermen, workers

Question 4

what is an example for CAPITAL in the factors of production?

Answer 4

oven, pots , fishing rod , sewing machine

Question 5

what is an example for ENTERPRISE in the factors of production ?

Answer 5

restaurant, entrepreneur ,fish market , entrepreneur

Question 6

what are the 3 sectors of ECONOMY?

Answer 6

PUBLIC
PRIVATE
THIRD/VOLUNTARY

Question 7

what types of organisations can be found in the private sector ?

Answer 7

SOLE TRADER
PARTNISHIP
PRIVATE LIMETED COMPANY LTD
PUBLIC LIMETED COMPANY PLC

Question 8

state 3 features of a partnership ?

Answer 8

2 TO 20 PEOPLE

UNLIMETED LIABILLITY

PARTNISHIP AGREEMENT

SHARE WORKLOAD

EASIER TO MAKE DECISIONS

Question 9

what are the key skills an entrepreneur should possess ?

Answer 9

GOOD COMMUNICATION
TAKE RISKS
GOOD LEADERSHIP
SPOT A GAP IN THE MARKET

Question 10

what are the similarities between Private Limited Companies and Public Limited Companies ?

Answer 10

BOTH HAVE LIMETED LIABILITY
THEY ARE SHAREHOLDERS
EASIER TO RAISE FINANCE
RUN BY A BOARD OF DIRECTORS

Question 11

what is the difference between leasing a van and hire purchasing a van ?

Answer 11

• when you lease a van you never own it
• when you hire purchase a van you pay until you own it
• if you hire purchase a van you can lose it if you don’t keep up payments
• if there is a problem with the van the lease will pay for the repair
• if there is a problem with the van and you are with hire purchase your responsible for repairs

Question 12

what are 3 ADVANTAGES of becoming a FRANCHISEE ?

Answer 12

• you get to choose colours and trade marks for a well established brand
  -guaranteed profits and sales
  -business plan is already in place
• they provide all equipment and training required

Question 13

what are 2 ways a charity can raise funds to support it’s cause?

Answer 13

HAVE A CHARITY SHOP

HOST AN EVENT

FUNDRIASE IN TEH HIGH STREET

ASK PEOPLE TO ADD A DONATION INTO THERE WILL

GET SUPPORT OR GRANTS FROM ORGINISATIONS

HOST SPONSERED EVENTS

Question 14

services provided by the public sector?

Answer 14

NHS
POLICE FORCE
FIRE BRIGADE
LIBARIES
SCHOOL
BINS

Question 15

what are the consequences for a business that doesn’t pay attention to customer service ?

Answer 15

PEOPLE DONT RETURN
PEOPLE SPEND LESS
YOU LOSE CUSTOMER LOYALTY
BAD REVIEWS
LESS PROFIT
THEY TELL PEOPLE NOT TO COME
THEY SPEND MONEY SOMEWHERE ELSE

Question 16

Name 2 stakeholders of a business and give an example of a conflict that could arise between them ?

Answer 16

internal
-employees’
-manager
-share holders

external stakeholders
-suppliers
-government
-customer and community
-bank

conflict

-employees want higher pay and more holidays
-manager wants employees to work harder for lower pay
-customer wants good products at low cost
-manager wants to sell and a high price to make as much profit as possible

Question 17

what are the number of units in the break even chart ?

Answer 17

25 UNITS

Question 18

if 15 units have been produced has Portobello enterprise made a profit or loss ?

Answer 18

LOSS

Question 19

name the type of costs shown by lien A ?

Answer 19

FIXED COST

Question 20

give 2 examples of what can be considered this type of cost ?

Answer 20

RENT , UTILLTY MORGAGE