Mocks

Question 1

Entrepreneur and enterprise

Answer 1

• enterprise is another term for a business and it refers to the actions of a risk taker
• an entrepreneur is a risk taker setting up a business

Question 2

Factors of production

Answer 2

This is the inputs that are used in the production of goods or services.

If there’s a shortage of a factor its price will rise. The factors price is a cost to the business and any rise in factor course is not going to be welcome as it reduces profit margins.