A) Motivation
What is motivation?
The factors that influence the behaviour of employees towards achieving set business goals
Define specialization
Specialization is when people and businesses concentrate on what they are best at
________ is a business owned by one person
Sole trader
Demand is the willingness and ability of an individual to purchase a product.
a) true
b) false
a) true
What's the basic economic problem?
Unlimited wants, limited resources (scarcity)
What is the formula for labour productivity?
Labour productivity = (total output)/(labour)
Give 3 examples of organizations in the private sector.
What is the difference between a private limited company and a public limited company
A public limited company (PLC) is an organisation that is owned by shareholders, and managed by directors. A private limited company (Ltd) does not publically trade shares and is limited to a maximum of fifty shareholders.
Explain the difference between an extension in demand and an increase in demand.
An extension of demand can be seen as a movement along the demand curve. This movement would be caused by a change in the price of the product in question. An increase in demand can be seen as a rightward shift of the demand curve. This shift can be caused by several factors.
What is the difference between economic goods and free goods?
A free good is a product that does not require any resources to make it and so does not have an opportunity cost. . Economic goods are those which are scarce in supply and so can only be produced with an economic cost and/or consumed with a price.
Name the 3 motivational theories.
1. scientific management, theory of economic man (Taylor)
2. two-factor theory (Herzberg)
3. Concept of human needs (Maslows hierarchy)
What are SMART objectives?
Specific, measurable, achievable(agreed), realistic(relevant), time specific objectives
Give 2 advantages and 2 disadvantages of a partnership
Advantages: easy to set up, greater access to funds, shared decision making, shared management and workload
Disadvantages: unlimited liability, shared profits, ceases to exist if one partner leaves, decisions binding on all partners, difficulty raising finance
Which of the following is the most mobile (geographical mobility and occupational mobility) factor of production?
a) land
b) labour
c) capital
d) enterprise
d) enterprise
Define what a PPC is
A Production Possibility Curve diagram shows this, that is, the maximum combination of two goods that can be produced by an economy with all the available resources.
Name 1 hygiene factor and 1 motivator from Herzberg's two-factor theory.
Hygiene factors: working conditions, relationships with others, salary and wage, supervision, company policy
Motivators: the work itself, responsibility, advancement, achievement, recognition of achievement
Give 3 characteristics of a successful entrepreneur
Innovative, self-motivated and determined, self-confident, multiskilled, strong leadership qualities, initiative, results-driven, risk taker, good at networking
Shareholder - an individual or group which has an interest in a business because they are affected by its activities and decisions. Is this statement true or false?
FALSE
Give 3 factors causing a shift in demand
Changes in Real Income, changes in taste/fashion, advertising/branding, changes in the prices of substitute goods, changes in the prices of complementary goods, changes in population size/distribution
What are the rewards for the factors of production(factor payments)?
Land: rent
Capital: interest
Enterprise: profit
Labour: wages
What is the difference between job enlargement and job enrichment?
Job enlargement typically adds tasks of a similar skill level. Job enrichment involves adding more complex and challenging tasks that require higher-level skills.
Give 3 reasons for business failure
Poor planning, liquidity problems, poor management skills, lack of objectives, failure to invest in new tech, lack of finance, poor location choice, poor marketing, competition, economic influences
Name 2 factors affecting the type of business organization chosen.
Size of business, number of owners, unincorporated or incorporated, how quick to set up, does the owner want direct management
What are the 3 key allocation questions?
What to produce, how to produce, for whom to produce
Sam wrote a list of how he would prefer to spend his Saturday afternoon.
first choice: go to a cricket match
second choice: watch the annual town parade
third choice: go to the cinema
fourth choice: visit relatives
Unfortunately a thunderstorm caused the cricket match and the town parade to be
cancelled. Sam went to the cinema. What was the opportunity cost of going to the cinema?
A. going to a cricket match
B. watching the annual town parade
C. visiting relatives
D. losing his Saturday free time
c) visiting relatives