Business Studies IGCSE Chapter 1 (Unit 1)

In order to be successful a business needs to?

• Identify its customers needs and wants
• Have a big shop
• Sell products really cheap
• Have lots of sales

What is an entrepreneur?

• Someone who takes a calculated risk through starting a business
• Someone who gives up when something goes wrong
• Someone who doe not understand the business environment
• Someone who does not take time to consider the risks

What is meant by 'adding value'?

• The money a company invests into a new product
• the difference between the price of the finished product/service and the cost of the inputs involved in making it.

Items that can be seen and touched are known as...

• Goods

• Services

Someone who starts, operates and assumes the risk of a business is known as an...

• Investor

• Interest person

• Entrepreneur

• Business inventor

A good or service that people would like to have, but is not required for living is called

• Want

• Needs

• Interest

• Desire

A good or service that is essential for living is called

• Want

• Needs

• Interest

• Desire

Scarcity is the main economic problem. What is scarcity?

• It is a situation that exists when there are unlimited wants and limited resources to produce the goods and services to satisfy those wants

• the next best alternative forgone by choosing another item

• is the physical and mental efforts put in by the workers in the production process

• is the finance, machinery and equipment needed for the production of goods and services

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 items

• There are too many factors of production

Which of the following is NOT a factor of production?

• oil reserves

• factory buildings

• skilled labor

• music CDs