Business revision

What are the factors of production?

• Create, Enterprise, Labour and Product

• Capital, Enterprise, Land and Labour

• Competition, Economy, Specialise and Value

• Create, Economy, Land and Labour

The problem of scarcity is...

What is specialisation?

• When businesses divide the labour onto employees

• When people and/or businesses concentrate on what they are worst at

• When a business has a special product which it's competitors don't have

• When people and/or businesses concentrate on what they are best at

What is an example of a tertiary sector?

• Retail shops

• Agriculture

• Car manufacturing

• Forestry

What is a mixed economy?

• Where all businesses are owned by different individuals

• Where some businesses are more successful than others

• Where some businesses are owned by the government, some by private individuals

• Where some businesses make more profit than others

What are the 2 main reasons for a business plan?

• Helps to inform business decisions and minimise risks

• To know the market and competition

• Requirement of application for finance

• Makes others and yourself aware of your business

Which one is a method of measuring a business' size?

• Number of customers

• Value of sales revenue

• Market share

• Best reputation

What is the disadvantage of short structures?

• Wider span of control means less supervision

• Wider span of control means more supervision

• Communication should be quicker

• Longer chain of command

What is the advantage of laissez-faire leadership?

• Clear sense of direction

• Leader has complete control

• Highly motivational

• Encourages slack

What is the disadvantage of internal recruitment?

• Motivating for employees

• Quicker & cheaper

• Not known to the business

• May create rivalry between employees