Higher Business Management (Full Course) Questions and Answers ( Verified solutions)

Higher Business Management (Full Course) Questions and Answers ( Verified solutions) Business - ANS- Any organisation working towards a set of objectives Goods - ANS- Things we can see and touch Durable Goods - ANS- Things we can use again and again Non-durable goods - ANS- Things we can use only once Service - ANS- A thing that is done for us Wants - ANS- Non-essential things we would like to have Needs - ANS- Essential things for survival Land - ANS- An economic term meaning natural resources which businesses use Labour - ANS- An economic term meaning the workforce of a business Capital - ANS- An economic term meaning factories, machines, vehicles, tools etc that a business owns or controls Enterprise - ANS- This is the business ideas that an entrepreneur or owner has on how to use land, labour and capital in their business Entrepreneur - ANS- The person who develops a business idea and combines the factors of production (land, labour, capital and enterprise). They take the risk of losing their initial investment if the business idea fails. Factors of Production - ANS- Land, Labour, Capital and Enterprise Cycle of Business - ANS- The constant process of producing goods and services Primary Sector - ANS- Businesses involved in extracting natural resources Secondary Sector - ANS- Businesses involved in manufacturing & construction Tertiary Sector - ANS- Businesses involved in providing services De-industrialisation - ANS- The process of manufacturing decline Sole Trader - ANS- a business owned by a single person Partnership - ANS- a business owned by two or more people Public Limited Company - ANS- a buisness witth limited liabilty whose shares are availible to the general public to buy on the stock market Private Limited Company - ANS- a company whose shares are not bought and sold on the stock market and can only pass to another person with the agreement of other shareholders Franchise - ANS- the right to use a specific business's name and sell its products or services in a given territory. Public Corporation - ANS- An organisation created by an Act of Parliament Charity - ANS- An organisation created to promote good causes Private Sector - ANS- The part of the economy owned by individuals and businesses Public Sector - ANS- The part of the economy owned by the government Voluntary Sector - ANS- Organistions set up to rise money for good causes, or to provide facilities for their members Deed of Partnership - ANS- Contract drawn up between owners Memorandum of Association - ANS- Document that regulates a firm's external activities and must be drawn up on the formation of a plc Partnership Agreement - ANS- A written agreement among all owners Limited Liability - ANS- The responsibility of a business's owners for losses only up to the amount they invest; limited partners and shareholders have limited liability