Opportunity cost is defined as the benefit or value that is lost from the next best alternative
foregone when making an economic choice it represents the gain that a person sacrifices by
selecting one option over another.
Ans2) Unincorporated business in which the business does not have separate legal identity
from its owner which means that the owner has unlimited liability for all business debts and
losses.
Ans3) A niche market is a small and specialized part of a large market which target the
group of customers who have unique needs and are not met by main products.
Ans4) Stakeholder is a person or group of people who have interest in business operation
and also the people who are affected by the business operation are also defined as
stakeholders.
Ans5) Organic Growth is when a business expands by using its own resources without
joining another company.This usually happens when a business increases it sales by
launching new products or opening different branches.
6A ) b
6B) C
6C) b
6D) C
7
First) d
Second) c
Third) a
Fourth) b
Ans 8) A private limited company is owned by shareholders like family and friends, and
shares can only be sold privately with agreement from other owners. A public limited
company can sell shares publicly on the stock exchange to anyone raising more capital.
Ans9) Having enough skilled workers available in the local area.
Being closer to your supplier to keep transport costs low.
Ans10) A mission statement is a broad look at the main purpose and motives of a business
whereas an objective is a specific target set to help the business reach that main purpose.
Ans11)
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When a business grows it can buy raw materials in massive bulk quantities which allows the
business, to get large discounts from suppliers and this lowers the average cost of making
each individual item which directly increases the total profit margin for the business for
example a large supermarket buying truckloads of milk at a much lower price than a small
local shop.
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