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6. What is working capital?

  • Profit from running a business
  • Pays for wages, rent, supplies etc.
  • Money needed to pay fro everyday items, for example machinery, tools

7. What is the Free economy?

  • When economy is at its peak
  • When the government does not interfere with any business activity
  • When prices are reduced on products to be fairer for cusomers

8. what is added value?

  • Spending more money to increase fixed costs
  • The difference between input costs and value placed on product
  • fixed costs + variable costs

9. What is mixed economy?

  • Distinctiveness of the product being offered
  • mixture of either markets and economic planning, public and private businesses or free economy
  • When the economy is sometimes high, but becomes low at points

10. What are the factors of production?

  • Land, Labour, Capital, Enterprising skills
  • Business plan, calculation, Land, profit
  • Capital, Shipping, Leadership, Land

11. What is the private sector?

  • Businesses owned by private individuals
  • PLC's
  • Businesses owned by small groups of local people

12. Which is a method of adding value?

  • Branding
  • Selling more units
  • Spending more on manufacturing

13. Which is NOT a demographic

  • Income
  • Household
  • Gender
  • Occupation
  • Behaviour
  • Religion, race, nationality