business in the real world

• What is one reason an entrepreneur may start a business?

  To produce a good
• Give an example of a service provided by a business.

  Premier Inn
• What is the difference between goods and services?

  Goods are tangible; services are intangible
• What are goods?

  Tangible items that can be used
• What are needs?

  Essential things required to survive
• What are the four factors of production?

  Land, labour, capital, enterprise
• What does 'opportunity cost' mean?

  Something given up to do something else
• What is the primary sector?

  Businesses that produce or extract raw materials
• What does the secondary sector do?

  Manufactures goods from raw materials
• What is the tertiary sector?

  Provides services
• What are the main business functions?

  • Marketing
  • Operations
  • Human resources
  • Finance
• What is an entrepreneur?

  An individual who starts a business
• What characteristic involves working long hours?

  Hardworking
• Why must entrepreneurs be organised?

  To manage day-to-day tasks and planning
• What does it mean to be innovative as an entrepreneur?

  To come up with new ideas
• What is a financial objective?

  Links to money, like making profit
• What is a non-financial objective?

  Links to things other than money
• What is technological change in business?

  Keeping up with rapid technology changes
• How can economic change impact a business?

  Through interest rates and inflation
• What is a sole trader?

  A business owned by one person
• What is unlimited liability?

  Owner is personally responsible for debts
• What is one advantage of sole trading?

  Quick and easy to set up
• What is a partnership?

  A business with 2 to 20 owners
• What is a deed of partnership?

  A document outlining partnership rules
• What is a private limited company?

  A business with limited liability
• What is the role of shareholders in a private limited company?


  They own portions of the company
• What is one disadvantage of a private limited company?

  More paperwork is required
• What is corporation tax?

  Tax on the profits of a business
• What is one advantage of being a shareholder?

  Opportunity to profit from business growth
• What is one disadvantage of being a sole trader?

  Risk of unlimited liability
• What is one advantage of a partnership?

  Shared decision-making among owners
• What is one disadvantage of a partnership?

  Profits must be shared among partners
• What is one characteristic of a successful entrepreneur?

  Willingness to take risks
• What is the importance of understanding the business environment?

  To adapt to constant changes affecting business
• What is the impact of environmental expectations on businesses?

  Affects production and resource usage
• What is the role of a sole trader in their business?

  They make all business decisions
• What is one example of a business that might be a sole trader?

  A photographer
• What is the significance of a partnership deed?

  It outlines rules and responsibilities
• What is one reason for forming a private limited company?

  To limit personal liability
• What is one disadvantage of a private limited company?

  Financial information may be public