IGCSE 1.1 Business Activity Exam| Questions and Answers 100% Solved| Latest
Update Graded A+
Division of Labour: is when production process is split up into different tasks and each
worker performs one of these tasks. (form of specialization)
Advantages of Division of Labor Specialized task training
Increases efficiency
Increases output
Save time
Disadvantages of Division of Labor Bore workers
Possible drops in efficiency
Production stopped due to absence
The purpose of all business is to combine the four factors of production to make products
which will satisfy people's wants.
Combines scarce factors
Produces goods and services
Employs people
Added value It is the difference between what a business pays its suppliers, and the price
that it is able to charge for the product / service.
Added value is important because... Sales revenue is greater than the cost of material
bought by the business
So the businesses can pay other costs and management expenses
May be able to make profit if these other cots total less than the added value
Update Graded A+
Division of Labour: is when production process is split up into different tasks and each
worker performs one of these tasks. (form of specialization)
Advantages of Division of Labor Specialized task training
Increases efficiency
Increases output
Save time
Disadvantages of Division of Labor Bore workers
Possible drops in efficiency
Production stopped due to absence
The purpose of all business is to combine the four factors of production to make products
which will satisfy people's wants.
Combines scarce factors
Produces goods and services
Employs people
Added value It is the difference between what a business pays its suppliers, and the price
that it is able to charge for the product / service.
Added value is important because... Sales revenue is greater than the cost of material
bought by the business
So the businesses can pay other costs and management expenses
May be able to make profit if these other cots total less than the added value
