Business study 2024 final exam Question with complete Answers

Business study 2024 final exam Question with complete Answers Needs We cannot live without these. Wants They benefit us but are not necessary to live. Scarcity Lack of sufficient resources. Needs (example) Water, food, housing. Wants (example) Soft drinks, chocolate, furniture. Opportunity Cost The next best alternative. Factors of Production Resources needed to produce goods and services. Factors of Production (List) Land. Labour. Capital. Enterprise. Land All natural resources. Land (examples) Coal, oil, gas. Labour The number of people hired. Capital Finance and machinery. Entrepreneur Someone who organises, operates and takes risks in a new business venture. Enterprise Skill/risk-taking ability of entrepreneurs. Added Value The difference between selling price and cost of materials. How to Add Value Increase selling price and reduce cost of materials. Justification of Added Value The product must be more desirable. Sectors of Production The three stages a product passes through before reaching the consumer. Primary Sector Extracts, uses and sells raw materials. Secondary Sector Manufactures goods using raw materials. Tertiary Sector Sells products and provides services to consumers. Primary Sector (example) Woodcutter Secondary Sector (example) Furniture maker Tertiary Sector (example) Retailer Chain of Production A product passes through the primary, secondary and tertiary sectors. Specialisation When a business concentrates on a particular industry or part of that industry