1.1

Question 1

Factors of Production

Answer 1

Land , Labor, Capital , Enterprise

Question 2

Land

Answer 2

all natural , renewable or non renewable resources.
Ex: Plains, seas, mines

Question 3

Labor

Answer 3

Manual and skilled individuals that makeup the workforce of a business
Ex: Carpenter, doctor, engineer

Question 4

Capital

Answer 4

Finance needed to set up and start the business and all man made resources used in production
Ex: machine and commercial vehical

Question 5

Enterprise

Answer 5

Risk taking individuals that combine other factors of production making them capable of producing goods and services

Question 6

Added Value

Answer 6

difference between selling price of the good and cost of the bought in materials

Question 7

Formula for Added Value

Answer 7

Added value= Selling price- Cost of bought in materials

Question 8

Ways to add Added Value (7)

Answer 8

1. Providing better customer service - customer loyalty
2. Advertising - more awareness
3. Attractive Displays - brand image
4. Buying cheaper raw materials - less cost of production
5. Product design – a distinctive offer to consumers.
6. Efficiency of production process (e.g. reduce waste, cut costs).
7. Focus on quality standard attractive to consumers.

Question 9

Opportunity Cost

Answer 9

Next best alternative forgone.

Question 10

Business Faliure

Answer 10

Inability of a business to continue operation

Question 11

Internal Reasons Why Businesses Fail (3)

Answer 11

1. Lack of cash - running capital
2. Poor Management - owner/worker is not skilled
3. Lack of Record Keeping - can not pay accurate

Question 12

External Reasons Why Businesses Fail (3)

Answer 12

1. Political and Economic changes - Bans
2. Technology - Difficult to adapt (ex: blockbusters0
3. Competition - Price wars

Question 13

Entrepreneur

Answer 13

An Indvidual who organizes factors of production, has idea for the business, takes risk with aim of generating profit

Question 14

Issues Entrepreneurs Face (4)

Answer 14

1. Lack of business opportunity
2. Lack of finance
3. Poor location
4. High competition when they start

Question 15

Qualities Entrepreneurs Need (5)

Answer 15

1. Innovation - product , process
2. Multiskilled - Understand every area of business
3. Self Confidence - believe in their idea
4. Risk Taking - Invesment
5. Leadership - motivate worker

Question 16

Intrapreneur

Answer 16

A business employee who takes direct responsibility for turning ideas into profitable new products. Risk and reward stay in business

Question 17

Benefit of intrapreneurs (3)

Answer 17

1. Creativity and innovation - new methods
2. New ways of doing business - improve efficiency
3. Retain good employees - keep talented workers so competition

Question 18

Advantages of a business to the country (5)

Answer 18

1. Employment - standard of living
2. Economic growth - more gdp
3. Innovation - Dynamism
4. Increase export - international competition
5. Tax generation - more goods and profits

Question 19

Business Plan

Answer 19

Written document that describes a business , objectives , management team and marketing sales strategy.

Question 20

Advantages of Business Plan (3)

Answer 20

1. helps gain investors - more mone
2. strength and weakness of a business - plan and remove
3. give owners and managers clear plan of action - success

Question 21

Disadvantages of Business Plan (3)

Answer 21

1. forecast and prediction - not accurate
2. market research - expensive
3. Entrepreneur become inflexible - ignore new opportunities