Category: Business Studies

What are legal requirements of forming a partnership? There are no legal requirements of forming a partnership, but partners like to sign a Deed of partnership. The Deed of partnership includes: • The names of the partners • The addresses of the partners • The responsibilities of partners • The share of each partner •…

What are consumer goods and capital goods? Consumer goods are the goods which are used by the end consumer. Consumer goods are not used to produce other goods. Example: Shirt Capital goods are the goods which are used by a business to produce consumer goods Example: A machine which makes shirts

What is business activity? Business is the process of satisfying customers’ needs and also aiming to make a profit. The businessperson provides the money to employ the 3 factors of production (land, labor, capital). The businessperson is considered to be the 4th factor of production because he/she takes the risk. Businesses produce the products and…

Disadvantages of Barter • It is difficult to find people who will demand the things you have and also offer the things which you want. • A conflict arises when people have to put a value to a product. For example, if you have 2 cars you will want to exchange 2 cars for a…

Barter and its examples Barter is the direct exchange of goods and services for goods and services. No one has to pay money when the barter occurs. For example if Person A has 2 cars, and he wants to buy a truck then Person A will find a person who wants 2 cars and also…

In a Planned economy the government decides on how to allocate the resources. In simple words you can say that the government decides what products should be produced. The government usually works for the welfare of people, so it might produce the products which are not profitable, but are beneficial for the people. The Private…

Advantages of Sole trader: Sole trader does not have to share profits Sole trader make all the decisions by himself or herself.(no interference) No legal requirements in setting up a business as a sole trader

Whether raw material are imported or not Labor requirements Trade barriers Government schemes  

Facilities The area Costs Shopper’s preference

Nearness to market Availability of raw materials Availability of workers Method of production