section 1

Question 1

scarity is when

Answer 1

there are not enough reasures to produce all the goods and services

Question 2

opportunity cost

Answer 2

the benfit that could have been gained from a alternative use of the same resiurce

Question 3

what are the ways to add value

Answer 3

1. branding
2. excelent service quality
3. product features
4. convenience

Question 4

mixed econmy

Answer 4

an economy owned by both private (owned by inviduals) and public sectors (owned by the goverment

Question 5

Industrialization and

de-industrialization

Answer 5

the growing importance of the secondary secotor

THe growing of the teriary sector and the less of the secoundary

Question 6

Measuring business size

Answer 6

capital employed, market share, number of employess, value of output

Question 7

Capital emmpleyed

Answer 7

the value of all long term finance in a business

Question 8

value of output

Answer 8

the amount th e businesses earn from selling there products is often used to compare the size of business.

Question 9

market share

Answer 9

the share of the total market the business is in.

Question 10

Why will a business own not want to expand

Answer 10

being a specialists
owners choices
market size
market domination
access and avialbility

Question 11

What are the reasons to expand your business

Answer 11

1. increase in profit -caused from an encrease of output
2. market share - the brand will be more known making it easer to grow more.
3. ecomics of scale - may reduce average cost
4. greater power to control the market - may be able to influence the market
5. protection from the risk of takeover - more diffcult because the companie is larger

Question 12

internal growth

Answer 12

increases the number of good it prduces

devolping new products

finding new markets/

Question 13

external growth

Answer 13

external growth is when a business merges and takes over another business

• horizontal integration
  -forward vertical intergration
  -backward vertical integration
  -conglomate integration

Question 14

horizontal integration

Answer 14

brings together two firms in the same indusrry.
e.g
primary –> primary

Question 15

forward vertical intergration

Answer 15

beings together two firms in the same induster but one is a custemer of another

manufacture –> retialer

Question 16

econmic promblem

Answer 16

the limited availability of resources to meet unlimited human wants and needs

Question 17

backwards vertical integration

Answer 17

brings together the supplier to the customer

PRoducer –> retialer

Question 18

conglomerate intergration

Answer 18

bring two businesses who are in complety different industries

industery a –> industry B

Question 19

Promblems in business growth

Answer 19

• internal growth is slow
• When it becomes to large the then deecomics of scales happens when the average cost becomes higher

When to firms join

• workers may fear for job lose and job status
• power dianmics new
• conflick may occur

Question 20

why do some business fail x 9

Answer 20

1. poor planing snd lack of objecticves
2. liqudity promblems
3. poor choices of location
4. poor management
5. failures to invest in new technogies
6. poor marketing
7. lack of finace
8. competition
9. economic influences

Question 21

unincorporated business

Answer 21

business that does not have a legal to separtation from it;s owners. the owners have unlimeted liabilty

Question 22

collateral

Answer 22

non current assets offered as security against borrowing,

Question 23

Joint venture

Answer 23

two or more businesses agree to work together on a project ans set up a seperate business for this

Question 24

social enterprise

Answer 24

a business with socila objectives that reinvests most of it’s profits

Question 25

pressure group

Answer 25

a group of like minded people that put preessure on organistions to reach an objective