S2 Understanding Business Assessment

Outline the difference between a need and a want.

• A need is essential for survival, while a want is something desired but not necessary.

• A want is essential for survival, while a need is something desired but not necessary.

• A need and a want are the same thing.

• Neither needs nor wants are essential for survival.

What is a product? ​ ​

• Car
• MOT on car
• Hairdresser
• Jacket
• Window Cleaning

What is a service?​ ​ ​

• Hairdresser
• Car
• MOT on Car
• Jacket
• Window Cleaning

Identify the factors of production.

• Land, Labour, Capital, Enterprise

• Land, Labour, Money, Management

• Resources, Work, Investment, Leadership

• Earth, Work, Finance, Innovation

Label the 2 factors of production.

a

b

Labour

Land

Enterprise

Capital

Label the 2 factors of production.

a

b

Capital

Labour

Enterprise

Land

Outline what is meant by the term ‘Entrepreneur’.

• A person who starts and operates a business, taking on financial risks to do so.

• A person who works for a company and receives a salary.

• A person who invests in stocks and bonds.

• A person who manages a team within a corporation.

State two examples of skills/qualities that Entrepreneurs must have.

• Leadership and communication

• Cooking and painting

• Singing and dancing

• Sleeping and eating

There are 3 sectors of the economy. What are they?

• Public, Private and Third

• Agriculture, Manufacturing, Services

• Industrial, Private, Service

• Production, Charities, Private

​ (a)   operates in the ​ (b)   sector.

• McDonalds
• Private
• Third
• Public