Economics December 2024 Past Paper Study Guide PDF

**Economics -- December 2024** **Final Exam Study Guide** 20 Multiple Choice Questions covering -- **[Introduction to Economics]** **[- Economics Systems]** NOTE: Due to the fact that the exam consists of numerous lengthy topics, only the items named below will appear on the exam paper. **[Busi...

**Economics -- December 2024** **Final Exam Study Guide** 20 Multiple Choice Questions covering -- **[Introduction to Economics]** **[- Economics Systems]** NOTE: Due to the fact that the exam consists of numerous lengthy topics, only the items named below will appear on the exam paper. **[Business Units]** -Know meaning of the following: [Multinational Co;] -A multinational is an enterprise that has branches in more than one country. All decisions are made by the parent company and carried out by the subsidiaries in these foreign countries. [Unlimited Liability;] -if the company goes bankrupt and they are unable to pay their creditors, they can take their personal possessions such as cars, homes etc. ( Sole trader) [Conglomerate];-A conglomerate is the "amalgamation" (purchasing/joining together) of two or more companies who produce totally different products, using different materials and techniques. [Red Tape;]- meaning that there is a lengthy process before a decision is finalized. This is because it take a long time for information to climb the ladder [Franchise;] -Sometimes a company will allow someone to buy the right to use their product or technique and their company's trade name. Businesses operating in this manner are called franchise e.g. fast food restaurants. The entrepreneur or franchisee pays to use the product or service and the franchiser receives an initial lump sum payment and receives a share of the company's profits for the use of their name, product and technique. [Short Run;-]the short run is the period of time when at least one factor of production remains fixed( Land) 3 months-3 years. [Memorandum of Association.]-This document would have the name of the company (PLC for Public Limited Companies or Ltd. for private companies); Address; objectives; amount of capital to be raised. (EXTERNAL FACTORS) -2 Characteristics of the following:;;; [Sole Trader];-A sole trader is referred to a one man business or an entrepreneur and is the sole owner and operator of the business and he has unlimited liability. [Partnership]-A partnership is a business with 2 or more owners/persons who run the company. These persons pool their money (capital) and other resources together with the aim of operating a profitable business. [Cooperatives-]These are special types of business organizations owned and controlled by groups with special interest. Members employ ad enjoy capital from and to the business. [Private Limited Co;]-These are firms that are owned by a few friends and family members, and do not depend on the general public for capital (shares are not offered for sale to the general public). [Public Limited Co.]-These companies are also privately owned, but the difference is that their shares may number in the thousands and are available for sale to the general public. This would mean that each shareholder is a part owner in the company. [Public Corporations].-These are referred to as state owned corporations. They are normally formed out of necessity by an "Act of Parliament " and can only be dissolved by an act of Parliament. **[Large/Small Scale Companies]** The production process is divided into various stages of labour or Specialization. This means that a task is divided up into smaller sections which is carried out by one person. Specialization makes mass production possible because as persons become good at their task they become faster and more efficient, leading to larger volumes of output. **[Wholesaling/Retailing]** - - -