The Organisation
Business Growth
Business Activity
Business Sector
Section 4
100
Customers, workers, managers, owners, and community are all what?
Stakeholders
100
What are the two types of ways a business can expand?
Internal and External growth
100
Business owned and run by private individuals
Private sector
100
What are the three industrial sectors?
Primary, secondary, tertiary
100
Environmental issues have become an important global issues for who?
Individuals, businesses, and governments
200
A statement of the general purpose and aims of the business
Mission Statement
200
Advantages that business obtain by explaining and increasing production.
Economies of scale
200
Organisations owned and run by the government
Public sector
200
Name two typical businesses from each sector
Primary: Mining, fishing Secondary: Construction, automobile production Tertiary: Movies, restaurants
200
What are two external costs of constructing a road bypassing a small town?
Destruction of the countryside, destruction of wildlife and its habitat, and pollution from increased traffic levels
300
What are the objectives of a private enterprise?
Profit
300
What is affected by diseconomies of scale?
Size Bureaucracy Effect on employees Communication issues
300
The possibility of buying and enjoying the use of the other item
Opportunity cost
300
Which sector is most prominent in America?
Tertiary
300
What is internalisation?
Where the supplier accepts responsibility for the external cost of putting it right
400
What are the objectives of a public enterprise?
Provide services
400
Name ways to measure the size of a business
Level of output Number of employees Sales value Capital employed
400
Name the four factors of production
Land, labour, capital, enterprise
400
How does a school, which is in the tertiary sector, depend on both primary and secondary sectors?
Wooden desks are made from trees which are related to the primary sector (forestry). Automobile parts for the school bus are assembled in the secondary sectors (manufacturing) [answers may vary]
400
What are two cost-benefit analysis problems?
Some business activities provide benefits for some consumers, but costs for others and it is often difficult to put a value on some social costs or benefits
500
What are the objectives of a non-profit enterprise?
Charitable donations
500
State ways in which small firms continue to thrive
Concentrate on smaller markets, produce custom-made goods, provide an important service, more creative, and quick decision making
500
Match the following businesses and enterprises to the correct private and public sector: small & large businesses, international companies, state owned telecommunications, self-employed traders, national treasury, hospital
Private sector: Small & large businesses, international companies, self employed traders Public sector: State owned telecommunications, national treasury, hospital
500
How does producing a loaf of bread involve all three sectors?
Secondary farmers grow the grain necessary to make bread (primary). The millers turn the grain into flour (secondary). Distribution of the bread in restaurants (tertiary).
500
What are two basic economic problems?
People have potentially unlimited wants and the resources available to satisfy them are limited
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