Ocr A level business Exam Questions With Correct Answers

Ocr A level business Exam Questions With Correct Answers factors of production - ANSWER -land-natural resources e.g. fields -labour-all human resources except entrepreneur -capital-buildings, machinery and tools, but not money -enterprise-the entrepreneur that organises the other 3 factors value added calculation - ANSWER value of output-value of input what is a constraint on a business - ANSWER a restraining factor e.g. environment, competition, legislation and the economy functions within a business - ANSWER -accounting and finance -operations management and production -marketing and support services -human resource management (HRM) sectors of business activity - ANSWER -primary-raw materials e.g. farming -secondary-manufacturing e.g. factories -tertiary-output of services e.g. supermarkets deindustrialisation - ANSWER a decline in the size of the secondary sector of the economy private vs public sector - ANSWER -private-businesses owned and run by private individuals, usually for profit -public-businesses owned and run by local or central gov, usually to provide a service sole trader - ANSWER -an individual who owns and runs their own business -unincorporated -unlimlited liability -pros-cheap and easy to set up, keep all profits, make all decisions -cons-little capital for investment partnership - ANSWER -2-20 owners -unincorporated -unlimited liability -pros-cheap and easy to set up, more skills, share workload -cons-share profits, share responsibility, cause arguments, less control private limited companies (ltd) - ANSWER -owned by shareholders who tend to be family/friends of the entrepreneur -incorporated -limited liability -pros-raise money through selling shares -cons-greater responsibilities public limited companies (plc) - ANSWER -able to sell shares on stock market -incorporated -limited liabilities -pros-press coverage from stock market, raise funds by selling shares -cons-media scrutiny, risk of takeover