1.1 Types of commercial enterprise
Define sole trader
When one person owns a business
Define exports
Goods and services produced in one county and sold in another country
State one type of financial motivation
E.g. bonus
Define Demand
Demand is the quantity of a good or service a consumer is willing and able to buy at various prices at a certain time
Define fiscal policy
The use of government spending and taxation to influence the level of economic activity in the economy
Define partnership
Between 2-20 owners of a business
What are net exports?
Exports - Imports
State one type of non financial motivation
e.g. job enrichment
Define Law of Demand
As the price of a product increases, quantity demanded decreases, vice versa, ceteris paribus
Define monetary policy
The use of interest rates and the money supply to influence the level of economic activity in the economy
What is the difference between a franchisor and a franchisee?
A franchisor largely controls how the franchisee's business is run and controls the name, brand, and business system the franchisee is going to use. A franchisee bears the financial risk for their franchised business and pays money to the franchisor.
State an example of a visible export for NZ
E.g. Kiwifruit
Define job specification
List of recommended skills and qualities for a person to qualify for and succeed in a position.
Draw a decrease in quantity demanded on a model (contraction)
Model correctly labelled
Draw expansionary monetary policy on a AS/ AS model
Model correctly labelled
State three advantages of being a PLC?
E.g. greater access to share capital, limited liability, more ideas
State an example of an invisible export for NZ
E.g. tourism
What is Herzberg's motivational theory?
The two-factor theory is a concept that states the factors that affect an individual's satisfaction and motivation level. These two factors are: Job satisfaction (affective/hygiene) Job dissatisfaction
Draw an increase in quantity supplied (extension)
Model correctly labelled
Draw contractionary fiscal policy on a AS/ AS model
Model correctly labelled
State 4 disadvantages of being a sole trader
E.g. Access to less capital, large workload, fewer ideas, unlimited liability
If exports = $5.5bn and imports = $5.8bn, what is the balance of trade?
$300m deficit
What is Maslow's hierarchy of needs?
This theory created by Abraham Maslow is based on how humans are inspired to satisfy their needs in a hierarchical order. Starting from the bottom going upwards, the five needs are physiological, safety, love and belonging, esteem, and self-actualization.
Draw an indirect tax on a supply and demand model
Model fully labelled
Explain how contractionary monetary policy impacts AD (link to the AD equation in your answer)
AD=C+I+G+(X-M) C, I decrease so AD decreases