SECTION A (answer all)
1 (a) Define the term ‘opportunity cost’. [2]
(b) Explain two qualities an entrepreneur is likely to need for success. [3]
2 (a) Define the term ‘demand’. [2]
(b) Explain two factors which might influence supply of a product. [3]
3 Explain the effects on a business of having a high level of working capital. [5]
4 (a) Define the term ‘transformation process’. [2]
(b) Explain two ways in which a business could improve its intellectual capital. [3]