CCEA AS Business Studies – AS1 Definitions, Advantages & Disadvantages – Study Guide &
Revision Notes
enterprise - correct answer ✔✔business / the actions of a risk take who starts up a business /
the entrepreneur who organizes the factors of production
entrepreneur - correct answer ✔✔risk taker who sets up a business after seeing a gap in the
market
land - correct answer ✔✔natural resources; not only feilds, but what lies below them in terms
of minerals and also includes what can be grown on top of it
labour - correct answer ✔✔all human resources
captial - correct answer ✔✔refers to buildings, machinery and tools / money
value added - correct answer ✔✔what a business achieves by ensuring that the price of the
finished goods or service is in excess of the input
factors of production - correct answer ✔✔the inputs that are used in the production of goods
primary sector - correct answer ✔✔extraction - agriculture, forestry, mining
secondary sector - correct answer ✔✔manufacturing / transforming
tertiary sector - correct answer ✔✔services - hotels, education
, adding value - correct answer ✔✔the process of increasing the worth of a resource by
modifying it
adding value - advantage - correct answer ✔✔able to charge a higher price
higher amount of profit
enhance image of product / service
establish a USP
competitive advantage - correct answer ✔✔the advantage that a firm has over its competitors,
which allows it to attract and retain greater sales and profits from an increase in customers
cost advantage - correct answer ✔✔the ability of a particular firm to produce a good or service
at a lower cost than its rivals
differentiation advantage - correct answer ✔✔a firms abilitiy to seperate itself and its products
from that of its main competitors and therefore makes its offerings more attractive to a
particular target market
private limited business - correct answer ✔✔owned by sharesholders or private individuals,
financed by private individuals, aims to make a profit
sole trader - correct answer ✔✔when individuals establish and operate a business on their own.
normally small businesses with an unlimited amount of employees
sole trade - advantage - correct answer ✔✔easy to set up
doesnt have to be registered
able to make own decisions
keep all profits made
Revision Notes
enterprise - correct answer ✔✔business / the actions of a risk take who starts up a business /
the entrepreneur who organizes the factors of production
entrepreneur - correct answer ✔✔risk taker who sets up a business after seeing a gap in the
market
land - correct answer ✔✔natural resources; not only feilds, but what lies below them in terms
of minerals and also includes what can be grown on top of it
labour - correct answer ✔✔all human resources
captial - correct answer ✔✔refers to buildings, machinery and tools / money
value added - correct answer ✔✔what a business achieves by ensuring that the price of the
finished goods or service is in excess of the input
factors of production - correct answer ✔✔the inputs that are used in the production of goods
primary sector - correct answer ✔✔extraction - agriculture, forestry, mining
secondary sector - correct answer ✔✔manufacturing / transforming
tertiary sector - correct answer ✔✔services - hotels, education
, adding value - correct answer ✔✔the process of increasing the worth of a resource by
modifying it
adding value - advantage - correct answer ✔✔able to charge a higher price
higher amount of profit
enhance image of product / service
establish a USP
competitive advantage - correct answer ✔✔the advantage that a firm has over its competitors,
which allows it to attract and retain greater sales and profits from an increase in customers
cost advantage - correct answer ✔✔the ability of a particular firm to produce a good or service
at a lower cost than its rivals
differentiation advantage - correct answer ✔✔a firms abilitiy to seperate itself and its products
from that of its main competitors and therefore makes its offerings more attractive to a
particular target market
private limited business - correct answer ✔✔owned by sharesholders or private individuals,
financed by private individuals, aims to make a profit
sole trader - correct answer ✔✔when individuals establish and operate a business on their own.
normally small businesses with an unlimited amount of employees
sole trade - advantage - correct answer ✔✔easy to set up
doesnt have to be registered
able to make own decisions
keep all profits made
