Form 1 Business Studies Review

Unit 1: Human Wants
Define human wants.

• The products that human beings want
• The desires that human beings strive to satisfy by using goods and services
• The Maslow's Hierarchy of Needs
• Activities carried out by individuals or organisations with an aim of making profit

Unit 1: Human Wants
Select three characteristics of goods

• Are tangible, are inseparable from the provider, can change in quality over time 
• Are tangible, can be seen, quality cannot be standardised
• Are tangible, can be stored, can change in quality over time
• Are intangible, cannot be stored, can change possession

Unit 1: Human Wants
What is the difference between renewable and non-renewable resources?

• Renewable resources are those that are new, and non-renewable resources are those that are not new
• Renewable resources are those which can be purchased, and non-renewable resources are those which cannot be purchased
• Renewable resources are those whose supply cannot be restored after use, and non-renewable resources are those whose supply can be restored
• Renewable resources are those whose supply can be restored, and non-renewable resources are those whose supply cannot be restored after use

Unit 2: Production
Select two characteristics of indirect production

• The producer specialises in one or a few areas of production, it results in surplus production of goods and services
• Goods and services are of low quality and quantity, can be very tiring
• Does not encourage invention and innovation, it results in surplus production of goods and services
• Production with a view of exchange, no one has the ability to provide all that he/she requires

Unit 2: Production
This level of production is where the raw materials are transformed into a finished product or more useful forms.

• Primary Level
• Secondary Level
• Tertiary Level
• Exclusionary Level

Unit 2: Production
An airport is an example of which type of good?

• Consumer good
• Non-Material Good
• Private Good
• Public Good

Unit 2: Business Environment
This business activity involves combining different raw materials to come up with one final product

• Manufacturing
• Extraction
• Trade
• Distribution of Goods

Unit 2: Business Environment
What is the difference between generic competition and enterprise competition?

• Generic competition is when a firm's products are of a general nature, while enterprise competition is when a firm's products are more complex
• Generic competition is when a firm's products are virtually the same as the products of other firms, while enterprise competition is competition between entrepreneurs
• Generic competition is when different firms' products are used for the same purpose, but are different, while enterprise competition is when a firm's products are similar to those of other firms
• Generic competition is when a firm's products are similar to those of other firms, while enterprise competition is when a firm's products are similar to those of other firms

Unit 3: Home Trade
Identify two characteristics of itinerant traders

• Are very persuasive, usually deal in fast-moving goods such as sweets, fruit, and scratch cards
• Are found mainly in densely populated areas, sell their goods at places where other people pass by
• Sell at places set aside by the government for sale, require little capital to start and operate their business
• Are found mainly in densely populated areas, their prices are not controlled

Unit 3: Home Trade
Identify two disadvantages to chain stores

• Slow-moving goods in one branch can be transferred to another branch where demand for them is higher, Goods are sold on cash basis
• Lack of personal touch with customers, large amounts of capital are required to start and run a chain store
• High cost of advertising increases the price of the goods, the variety of goods that can be sold is limited
• May incur losses due to pilferage of goods, their big size poses management problems