Cambridge IGCSE Business Studies Questions with Correct Answers. A Need Correct Answer A good or service essential for living.
A want Correct Answer A good or service that people would like to have, but which is not essential for living.
Economic problem Correct Answer Unlimited wants but limited resources - this creates scarcity.
Scarcity Correct Answer Lack of sufficient products to satisfy total wants of population.
Opportunity Costs Correct Answer The next best item given up by choosing another.
Factors of production Correct Answer Resources needed to produce goods and services - land, labour, capital and enterprise
Business Correct Answer An organisation that combines factors of production to make goods and services to satisfy people's wants and needs.
Specialisation Correct Answer People and business concentrate on what they are best at.
Division of labour Correct Answer Production is split into seperate tasks each worker specialises in one task
Added Value Correct Answer The difference between a product's selling price and the cost of bought in materials.
Primary sector Correct Answer Businesses that extract and use natural resources to produce raw materials.
Secondary sector Correct Answer Businesses that manufactures goods using raw materials provided by primary sector.
Tertiary sector Correct Answer Businesses that provide services to consumers and other firms.
Deindustrialisation Correct Answer Decline in the importance of secondary, manufacturing industry. Mixed economy Correct Answer This has both private sector businesses and public sector businesses.
Private sector Correct Answer Businesses owned by people, not the goverment/state.
Public sector Correct Answer Businesses owned by goverment/state.
Privatisation Correct Answer The sale of public sector business to private sector.
Entrepreneur Correct Answer Someone who organises, operates and takes the risk for a new business venture.
Business plan Correct Answer The objectives and details of the operations, finance and owners of a new business.
Capital employed Correct Answer The total value of capital used in a business.
Internal Growth Correct Answer The business expands its existing operations.
External Growth Correct Answer The business expands by merging with or taking over another business.
Takeover Correct Answer A business buys out the owners of another business.
Merger Correct Answer The owners of businesses agree to join their firms together to form one business.
Horizontal integration Correct Answer The business integrates with another in the same industry at the same stage of production.
Vertical integration Correct Answer The business integrates with another in the same industry but at a different stage of production - towards suppliers is backward vertical integration and towards the market/customer is forward vertical integration.
Conglomerate integration Correct Answer The business integrates with another but in a different industry.
Soletrader Correct Answer The business is owned by one person.
Partnership Correct Answer The business is jointly owned by two or more people.
Limited liability Correct Answer The liability of owners/shareholders is limited to the amount invested. Personal posessions are not at risk.
Incorporated business Correct Answer A business with seperate legal identity from its owners.
A want Correct Answer A good or service that people would like to have, but which is not essential for living.
Economic problem Correct Answer Unlimited wants but limited resources - this creates scarcity.
Scarcity Correct Answer Lack of sufficient products to satisfy total wants of population.
Opportunity Costs Correct Answer The next best item given up by choosing another.
Factors of production Correct Answer Resources needed to produce goods and services - land, labour, capital and enterprise
Business Correct Answer An organisation that combines factors of production to make goods and services to satisfy people's wants and needs.
Specialisation Correct Answer People and business concentrate on what they are best at.
Division of labour Correct Answer Production is split into seperate tasks each worker specialises in one task
Added Value Correct Answer The difference between a product's selling price and the cost of bought in materials.
Primary sector Correct Answer Businesses that extract and use natural resources to produce raw materials.
Secondary sector Correct Answer Businesses that manufactures goods using raw materials provided by primary sector.
Tertiary sector Correct Answer Businesses that provide services to consumers and other firms.
Deindustrialisation Correct Answer Decline in the importance of secondary, manufacturing industry. Mixed economy Correct Answer This has both private sector businesses and public sector businesses.
Private sector Correct Answer Businesses owned by people, not the goverment/state.
Public sector Correct Answer Businesses owned by goverment/state.
Privatisation Correct Answer The sale of public sector business to private sector.
Entrepreneur Correct Answer Someone who organises, operates and takes the risk for a new business venture.
Business plan Correct Answer The objectives and details of the operations, finance and owners of a new business.
Capital employed Correct Answer The total value of capital used in a business.
Internal Growth Correct Answer The business expands its existing operations.
External Growth Correct Answer The business expands by merging with or taking over another business.
Takeover Correct Answer A business buys out the owners of another business.
Merger Correct Answer The owners of businesses agree to join their firms together to form one business.
Horizontal integration Correct Answer The business integrates with another in the same industry at the same stage of production.
Vertical integration Correct Answer The business integrates with another in the same industry but at a different stage of production - towards suppliers is backward vertical integration and towards the market/customer is forward vertical integration.
Conglomerate integration Correct Answer The business integrates with another but in a different industry.
Soletrader Correct Answer The business is owned by one person.
Partnership Correct Answer The business is jointly owned by two or more people.
Limited liability Correct Answer The liability of owners/shareholders is limited to the amount invested. Personal posessions are not at risk.
Incorporated business Correct Answer A business with seperate legal identity from its owners.
