UNDERSTANDING BUSINESS ACTIVITY
ANY GOOD OR SERVICE THAT PEOPLE MUST HAVE TO BE ABLE TO LIVE
NEED
BUSINESS ACTIVITY THAT INVOLVES THE EXTRACTION OR HARVESTING OF NATURAL RESOURCES
PRIMARY SECTOR
The ability to think up new ideas or different ways of doing things - what successful entrepreneur characteristic is this?
Creative
The most common type of private sector business is ____________.
sole trader
Name one internal stakeholder group.
owners, managers, employees
THE NEXT BEST ALTERNATIVE GIVEN UP BY CHOOSING A DIFFERENT OPTION
OPPORTUNITY COST
HOUSE BUILDING, CAR MAKING, OIL REFINING ARE ACTIVITIES IN WHICH SECTOR?
SECONDARY SECTOR
Name one key element of business plans.
objectives,market research,marketing,finance.resources,people,operation
Name one advantage of a partnership business
more capital, more ideas/skills, partners can share loss
Name two external stakeholder groups.
customers, suppliers, lenders/bank, government, local community
THE DIFFERENCE BETWEEN THE SELLING PRICE AND THE COST OF BOUGH-IN MATERIALS
ADDED VALUE
Countries which have both private and public sector are called __________ economy.
mixed
One way how government supports business start-ups.
grant,low interest loans,low tax rates, training, advice,business fairs
Cannot sell shares on the stock exchange is a feature of which type of limited company?
Private limited company
Identify the stakeholder whose objectives might include:to receive interest payments when dueto have loans repaid when due
lenders or banks
WHAT IS THE BASIC ECONOMIC PROBLEM?
LIMITED RESOURCES AND UNLIMITED WANTS
Name an activity in the public sector.
health care, education, transport
Name 4 ways to measure business size
number of employees, value of output/sales,value of capital employed
A business agreement where one person or business buys the right to use the name, logo and product of an existing business.
Franchise
Identify the stakeholder whose objectives might include:
to be paid the correct amount of taxes on time
government
NAME THE 4 FACTORS OF PRODUCTION
LAND,LABOUR,CAPITAL,ENTERPRISE
Name one feature of a private sector.
owned and controlled by individuals, aim is profit
_________________________is when two businesses at different stages of production within the same industry join to become a single, larger business.
vertical integration
A business with social objectives that reinvest most of its profits back into benefiting society.
Social enterprise
Name the 5 business objectives.
profit, growth,market share,social,ethical& environmental,survival