1.
Define scarcity
2.
Why must choices be made?
3.
What are the three categories that choices fall
into?
4.
What is positive economics?
5.
What is normative economics?
6.
Where do you produce if you profit maximise?
7.
What does ‘sales maximise’ mean?
8.
What does ‘satisficing’ mean?
9.
Apart from the business objectives already
mentioned what are the other ones?
10.
What does customer satisfaction mean?
11.
Give examples of social objectives
12.
Who is included in the term ‘economic agents’?
13.
Who are the primary stakeholders in a business?
14.
Who are the internal stakeholders in a business?
15.
Who are the external stakeholders in a business?
16.
How are suppliers ‘stakeholders’?
17.
How is the local community a stakeholder?
18.
What does CSR involve?
19.
In recent decades CSR has become an increasingly
important consideration for many businesses. State three views on this.
20.
What is the difference between tax avoidance and
tax evasion?
21.
What does ‘zero hours contract’ mean?
22.
State two advantages of a zero hours contract?
23.
State two disadvantages of a zero hours contract
24.
Explain ‘creative destruction’
25.
Explain ‘structural change’
26.
What does innovation involve?
27.
Some businesses may be called ‘disrupters’ –
what are they?
28.
What is the importance of first mover advantage?
29.
Explain the term ‘adding value’
30.
Profit is an incentive to start a business. What
other incentives are there?
31.
What is the reward to labour?
32.
What is the reward to the entrepreneur?
33.
What is the reward to capital?
34.
Explain the term ‘social entrepreneurship’
35.
What do social entrepreneurs do?
36.
Explain the term specialisation’
37.
Explain the term ‘division of labour’
38.
Specialisation and division of labour gives us
good ways of increasing efficiency – what are the advantages of increasing
efficiency?
39.
State three reasons a business may need to
borrow money
40.
Explain the term ‘working capital’?
41.
Explain the term ‘interest rates’
42.
What is the Base rate of the Bank of England
right now?
43.
What impact is it likely to have on business
decisions?
44.
How do high interest rates affect businesses
seeking to expand?
45.
How do high interest rates affect homeowners?
46.
How do high interest rates affect the exchange
rate?
47.
How do high interest rates affect importers?
48.
How do high interest rates affect exporters?
49.
How do high interest rates affect businesses selling
on credit?
50.
If the government raises income tax and cuts
government spending, how will this affect a business?
51.
Who pays corporation tax?
52.
What is President Trump intending to do about
corporation tax?
53.
Explain the reasons for skills shortages?
54.
How does unemployment affect work habits?
55.
What problems does rising inflation, create for a
business?
56.
Explain the term ‘effective demand’
57.
Explain the term ‘consumer sovereignty’
58.
What factors determine demand
59.
Explain the term ‘opportunity cost’
60.
Why might the demand curve shift to the right?
61.
In supply theory, define the term ‘the short run’
62.
In supply theory define the term ‘the long run’
63.
What are the main determinants of supply
64.
Draw a diagram to show subsidies
65.
Draw a diagram to show an indirect tax
66.
Draw a diagram to show excess demand and excess
supply
67.
Explain the term ‘the profit signalling
mechanism’
68.
Explain the term ‘ceteris paribus’
69.
What are the three functions of price? Explain each
70.
State two advantages of the price mechanism
71.
Explain the term ‘allocation of resources’
72.
Explain the term ‘homogenous products’
73.
Explain the term ‘privatisation’
74.
Explain the term ‘oligopoly’
75.
Explain the term ‘niche markets’
76.
Starting a business or launching a new product
both involve significant up-front costs. State three of them
77.
State five ways in which market research can
reduce risk when developing a new business idea
78.
What is ‘secondary market research’
79.
What is ‘primary market research’?
80.
Explain the term qualitative research
81.
What are the problems of test marketing?
82.
What are the problems of using a focus group?
83.
What are the problems of using a questionnaire?
84.
State three advantages of primary research
85.
State four advantages of secondary research
86.
State three disadvantages of primary research
87.
State four disadvantages of secondary research
88.
Explain the term ‘market orientation’
89.
Explain the term ‘product orientation’
90.
Explain the term: random sampling
91.
Explain the term: Quota sampling
92.
Explain the term: stratified sampling
93.
What are the limitations of market research
94.
Explain the term: markets segmentation (Loads of fantastic notes here....)
95.
Explain the term: market positioning
96.
Explain the term: Market mapping
97.
List nine ways to achieve a competitive
advantage
98.
List five ways a business may differentiate its
products
99.
Define ‘competitive pricing’
100.
The banking system is founded on two key factors
– what are they?
101.
Explain the term ‘collateral’
102.
Explain the term ‘financial intermediaries’
103.
What risks does a bank run when it makes a loan?
104.
How do businesses deal with risk?
105.
Define/explain the term ‘limited liability’
106.
State two advantages of being a private limited
company
107.
State three disadvantages of being a private
limited company
108.
Who owns a PLC?
109.
State four sources of internal finance
110.
State seven sources of external finance
111.
E3xplain the term ‘working capital’
112.
What are the advantages of raising finance by issuing
share capital?
113.
What are the disadvantages of raising finance by
issuing share capial?
114.
Explain the term ‘venture capital’
115.
What are the advantages/disadvantages of raising
finance via an overdraft?
116.
What are the arguments for and against leasing
as a source of finance?
117.
How will the objectives of the owner influence
the choice of finance
118.
Define the term ‘externality’
119.
Draw a diagram to show a negative externality
in consumption
120.
Draw a diagram to show a negative externality in
production
121.
Draw a diagram to show a positive externality in
consumption
122.
Define social costs
123.
Define social benefits
124.
What are the four main reasons for market failure
125.
Explain the term ‘mixed economy’
126.
Define the term ‘government failure’
127.
Are regulations always prohibitive?
128.
Define the term ‘regulation’
129.
Explain the term ‘voluntary agreements’ as a way
of reducing market failure
130.
Give four reasons why government intervention
may fail
131.
Give seven ways the government may intervene inthe economy to overcome market failure
132.
State one advantage and one disadvantage for
each method of intervention
133.
Explain the term ‘capital spending’
134.
Explain the term ‘operating costs’
135.
Explain the ‘law of diminishing returns’
136.
How is sales revenue calculated?
137.
What is the formula for break-even?
138.
Draw a diagram to show margin of safety
139.
State four purposes of break-even analysis
140.
Outline the main limitations of break-even
analysis
141.
Give one example of a barrier to entry to a
market?
142.
What are sunk costs?
143.
What is the ratio for gross profit margin?
144.
What is the ratio for net profit margin/
145.
What is the ratio for operating profit margin?
146.
State five ways a business may try and increase profits
147.
Explain the term ‘insolvency’
148.
Explain the term ’liquidity’
149.
How may a business improve cash flow?
150.
What risks does a business run if it does not
control cash flow?
