What does an entrepreneur do to provide goods or services?
Identifies an opportunity, organises resources, and takes a business risk.
What does a business plan describe about a business?
Its idea, customers, product or service, marketing, resources, costs, and expected income.
What are the four management functions?
Planning, organising, leading, and controlling.
What are the commonly described levels of management?
Top, middle, and lower or operational management.
How do management levels differ?
Their responsibilities differ.
What is income in bookkeeping?
Money received.
What is a loss in bookkeeping?
Expenses exceed income.
How is profit calculated from income and expenses?
What are assets?
Things of value owned by a person or business.
What is the accounting equation?
What does a general ledger group?
Transactions into accounts.
What do consumers do when obtaining goods and services?
They buy goods and services.
What do producers do with goods and services?
They make or provide them.
What distinguishes needs from wants?
Needs are essential for living; wants can be lived without.
Why must people and businesses make choices?
Because resources are limited.
What is opportunity cost?
The next-best option given up when a choice is made.
How do households and businesses interact in the circular flow model?
Through product markets and factor markets.
How does money flow relative to goods and services in the circular flow model?
In the opposite direction.
Which common forms of business ownership are listed?
Sole trader, partnership, private company, and public company.
What factors distinguish forms of business ownership?
Ownership, decision-making, liability, and ability to raise capital.
What does planning do in management?
It sets goals.
What does organising do in management?
It arranges resources.
What does leading do in management?
It guides people.
What does controlling do in management?
It checks results and corrects problems.
What are liabilities?
Amounts owed by a person or business.
What does owner's equity represent?
The owner's claim in the business.
Answer 14 questions on EMS Entrepreneurship and Economy.
1. Which activity best describes entrepreneurship?
2. A prospective business owner is preparing a plan to assess a proposed venture. Which set of information best belongs in that plan?
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