Intro to business

Question 1

What is an entrepreneur?

Answer 1

a person who sets up a business or businesses, taking on financial risks in the hope of profit.

Question 2

What is an enterprise?

Answer 2

A business

Question 3

What is meant by the factors of production?

Answer 3

The inputs which are used when predicting goods or services

Question 4

What are the four factors of production?

Answer 4

Land,Labour, Enterprise and Capital

Question 5

what is the importance of the availability of factors of production for the stakeholders of a business

Answer 5

If there is a shortage = more expensive. This reduces profit margins . Products could become more expensive

Question 6

what is the impact on and the importance to the economy of entrepreneurship and enterprise

Answer 6

There are more jobs, suppliers get more orders, trade balance is improved because of increased exports. Government get more tax revenue.

Question 7

explain the role of the entrepreneur in making business decisions

Answer 7

How much of each factor of production should be used… should a farmer use 1 man and a machine or 10 men hand picking… it depends on costs

Question 8

distinguish between primary, secondary and tertiary organisations

Answer 8

Primary = extraction
secondary = manufacturing
tertiary= retail

Question 9

distinguish between private, public and third sector organisations

Answer 9

private = individuals
public = state
third = charity

Question 10

distinguish between a national and multinational business.

Answer 10

national= only operates in one country but may sell to others
multinational= sells and operates in more than one country

Question 11

evaluate the factors affecting the choice of legal structure of a business

Answer 11

ownership and control of the business
responsibility for any debts
sources of finance available
the objectives pursued