Higher Understanding Business - Booklets 1 & 2

Which of the following is an example of a need?

• Mobile phone

• Holiday

• Food

• X-box

Goods are examples of tangible objects. The term tangible means something you can see and touch.

• True

• False

• Unsure

A haircut is an example of a

• Durable Good

• Non Durable Good

• Tangible Good

• Service

The Factors of Production are

• Primary, Secondary, Tertiary and Quaternary

• Private, Public and Third

• Land, Labour, Capital and Enterprise

• Land, Labour, Tertiary and Quaternary

Businesses including farming, fishing, forestry & the extraction of natural resources e.g. oil, minerals etc.

• Tertiary Sector

• Primary Sector

• Secondary Sector

• Quaternary Sector

Who is this entrepreneur?

• Steve Jobs

• Mark Zuckerberg

• Richard Branson

• Bill Gates

Which of the following businesses operates in the Private Sector?

• Social Enterprise

• Public Limited Company

• Charity

• UK Government

Which of the following Sectors of Economy exist with the main aim of providing a quality service to the public.

• Private Sector

• Public Sector

• Third Sector

• Primary Sector

Which of the following is not an advantage of being a Sole trader?

• Owner Keeps all the profits

• Owner makes all decisions

• Owner has Unlimited Liability

• Business affairs kept private

Unlimited Liability refers to

• When a business owner (Sole trader or Partnership) is unable to pay their debts and can lose their personal possessions to pay those debts.

• When a business (Ltd or Plc) is unable to pay its business debts and the owner (Shareholders) can lose only the money they invested to buy shares.