Business Activity
What is the economic term for the gap between limited resources and theoretically limitless wants
Scarcity
Name the three sectors used to classify business activities.
Primary, Secondary, and Tertiary sectors
What is a key characteristic of successful entrepreneurs?
Innovation, risk-taking, or leadership skills
What is the main difference between a sole trader and a partnership?
A sole trader is owned by one person, while a partnership is owned by two or more people.
What are the keys to answering a Justify Question
1. Pros Cons BOTH sides
2. Conclusion
What term describes the increase in worth that a business creates by turning inputs into outputs?
Added Value
What is the basis for classifying a business in the public sector?
It is owned and operated by the government.
Name one method of measuring business size.
Number of employees, value of output, or capital employed
What does "limited liability" mean in the context of a limited company?
: Shareholders are only responsible for the company's debts up to the amount of their investment.
An 6 Point question covers which aspects of Kane
Knowledge
(application and or Analysis)
What is the concept involving focusing on a specific task or product to increase efficiency?
Specialisation
Give an example of a business in each of the three sectors: primary, secondary, and tertiary.
: Farming (Primary), Manufacturing (Secondary), Retail (Tertiary)
Why might a business owner want to expand their business?
To increase profits, market share, or economies of scale
Name a type of business organization that operates under a license from an existing firm.
Franchise
Which Paper is worth 80 marks
Both
What is a primary purpose of business activity?
: To satisfy needs and wants of consumers
Why might the importance of business sectors change over time, especially in developed economies?
Due to technological advancements and shifts in consumer demand, and shifting consumer needs
What is a common problem businesses face when they grow?
Managing a larger workforce, maintaining quality, or increased competition
What is a key difference between unincorporated businesses and limited companies?
: Owners of unincorporated businesses have unlimited liability, while those of limited companies have limited liability.
Which Paper has a case study
Paper 2
How can businesses increase added value?
By improving quality, branding, or convenience, or by reducing production costs
Explain the difference between private sector and public sector businesses in a mixed economy.
: Private sector businesses are owned by individuals or companies, while public sector businesses are owned and operated by the government.
DAILY DOUBLE
WHy DO some business fail?
Why might a joint venture be formed, and what is a potential challenge of this type of organization?
Formed to pool resources for a specific goal; challenge includes potential conflicts between partners.
Show cause and effect relationship (Causal links)