Understanding Business

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

• Tertiary Sector

• Primary Sector

• Secondary Sector

• The economic problem

Organisations run by central or local government are often referred to as

• Private sector

• Voluntary sector

• Public sector

• Mixed economy

Which of these is the best definition of the ‘economic problem’?

• People do not have enough money.

• There are not enough resources to satisfy people’s wants.

• There are too many factors of production.

• The amount of something produced by a person, machine or industry.

Which of the following is NOT one of the benefits of business growth?

• Sales will increase.
• Market share will probably rise.
• The business will probably become more secure.
• Management will have less work to do.

Examples of tertiary sector companies include...

• Farming, fishing, mining
• Transport, banking, teaching, nursing, police
• Building, processing food, manufacturing

What is 'added value'?

• is the next best alternative given up by choosing another item.

• is the difference between the selling price of a product and the cost of bought-in materials and components.

• It's a good or service essential for living.

• is the lack of sufficient products to fulfil the total wants of the population.

Which of these business activities are usually NOT in the public (government) sector?

• grocery stores

• health

• defence

• public transport

In a Partnership, ownership and control of the business is shared between how many partners?

• 2 to 2,000

• 2 to 20

• 2 to 200

McDonald's is an example of a Franchise?

• True

• False

Which Sector of the Economy would Sole Traders, Partnerships and Private Limited Companies be found in?

• Public

• Private

• Third