Business enterprise As Cambridge

Which two are economic resources?

• Land

• Primary sector

• Labour

• Secondary sector

Answer explanation

Land, labour, capital or enterprise are all correct answers.

Primary and secondary sectors are examples of the economic sectors, also including Tertiary.

What is meant by a business objective?

• It is an aim for a business.

• It is a measurable step people or businesses take to achieve an aim or goal.

• A general goal for a business.

• It is a step people or businesses take to achieve an aim or goal.

Answer explanation

A company’s goals and objectives are not the same. The goal includes a broad primary outcome. A business objective, on the other hand, is a measurable step people take to achieve that goal. Goals are general while objectives are specific.

Scarcity refers to a basic economics problem—the gap between limited _________ and theoretically limitless wants.

Answer explanation

Scarcity refers to a basic economics problem—the gap between limited resources and theoretically limitless wants. This situation requires people to make decisions about how to allocate resources efficiently, in order to satisfy basic needs and as many additional wants as possible. Any resource that has a non-zero cost to consume is scarce to some degree, but what matters in practice is relative scarcity. Scarcity is also referred to as "paucity."

__________ _____ represent the potential benefits that an individual, investor, or business misses out on when choosing one alternative over another.

• Scarcity and choice

• Business environment

• Business objectives

• Opportunity costs

Answer explanation

Opportunity costs represent the potential benefits that an individual, investor, or business misses out on when choosing one alternative over another. Because opportunity costs are unseen by definition, they can be easily overlooked. Understanding the potential missed opportunities when a business or individual chooses one investment over another allows for better decision making.

PEST is an acronym for

• Political, external, social and technological.

• Political, economic, Labour, and technological.

• Political, economic, social and technological.

• Primary, economic, social and technological.

Answer explanation

PEST is an acronym for Political, Economic, Social and Technological. This analysis is used to assess these four external factors in relation to your business situation. Basically, a PEST analysis helps you determine how these factors will affect the performance and activities of your business in the long-term.

Owners/managers without much experience, a lack of market power, lack of competitiveness and lack of value for money can be reasons for?

• External factors affecting a business

• Business to change it's objectives

• Business failure

• Success

Answer explanation

These are some potential reasons for why a business might fail.

Can you think of more?

If a business was to fail, effects it could have on the economy could be...

• less tax paid to the government

• people may lose their jobs

• that less businesses are good for competition.

• if people lose their jobs, there will be less money spent on goods and services.

Answer explanation

If business failure was to occur, some possible effects could be: people may lose their jobs, if people were to lose their jobs, there will be less money spent on goods and services and less tax paid to the government.

Can you think of any other effects?

Open-mindedness, Curiosity, Proactiveness, Resilience, Risk-taking, Creativeness, Persuasiveness and Bravery are potential traits of an ____________.

Answer explanation

An entrepreneur will often possess some, if not most of the following traits: Open-mindedness, Curiosity, Proactiveness, Resilience, Risk-taking, Creativeness, Persuasiveness and Bravery.

Why would an entrepreneur possess these traits?

Why are entrepreneurs important to the economy?

Answer explanation

.Entrepreneurs provide useful goods and services (or supply what is demanded in goods and services)

Individuals often resort to entrepreneurship to provide niche solutions or to use their creativity, technological knowledge, or finances to generate their own income. Innovative ideas and inventiveness are foundational driving factors for entrepreneurs which result in great contribution to the economy.

2. Entrepreneurs create employment (or give workers purchasing or buying power)The most important way in which an entrepreneur helps improve an economy is through the creation of jobs. Their actions, vision, ideas and risk taking – if successful – can result in employment opportunities for thousands of people for generations to come

3. Entrepreneurs earn profit (or money) which makes the economy growThe new products or services created by entrepreneurs result in new wealth from the new markets. Additionally, higher earnings due to entrepreneurship can help boost national income. This is in the form of higher government spending and tax revenue, resulting in investment in struggling sectors and human capital.

4. Entrepreneurs help other entrepreneurs (suppliers, sub-contractors) grow. We often think of entrepreneurs as inventing totally new products and ideas, but they also impact existing business. Since entrepreneurs think differently, they can come up with innovative ways to expand and develop the existing enterprises. For example, modernizing production processes, implementing new technology in the overall distribution and marketing processes, and helping the existing enterprises to utilize existing resources in more efficient ways.

5. Entrepreneurs help in the development of rural areas (or small towns and cities)thus stopping migration of rural people into Metro Manila or other big cities A large number of new jobs and opportunities are created by entrepreneurship. Entrepreneurship creates a huge number of entry-level jobs that can help people from rural areas.

6. Entrepreneurs help the country save capital by providing the goods we used to import from other countries. Entrepreneurs are innovators who find new ways produce goods and services or who develop new goods and services to bring to market. These goods and services can later create a big impact internationally when done successfully. Entrepreneurship is considered crucial to a dynamic economy. Entrepreneurs create employment opportunities not only for themselves but for others as well. Entrepreneurial activities may influence a country’s economic performance by bringing new products, methods, and production processes to the market and by boosting productivity and competition more broadly.

What is a social enterprise?

• An organisation that prioritises maximising profits.

• An organisation that relies on donations to support its social or environmental activities.

• An organization whose main goal is promoting social or environmental welfare rather than making or maximizing profits.

• A type of charity

Answer explanation

An organization whose main goal is promoting social or environmental welfare rather than making or maximizing profits.

This can often be confused with a charity.

What is the difference?