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1. How can you set up a business?
The minimum share capital for public limited company is 50,000£, so many new business are likely to take one of the folowing forms: Sole trader, Partnership, Private limited company.

2. Explain sole trader?
It is the simplest way of starting a business. You are self employed and entirely responsible for all aspects of the management of your business.

3. Explain partnership?
Two or more people starting a business together can set up a partnership. All partners are responsible for the debts of the partnership, and profits and loses are shared.

4. Explain private limited company?
A company can be formed with a minimum two people becoming a shareholders. If the company goes out of business, the responsibility of each shareholder is limited to the amount that thay have contributed; they have limited liability.

5. Results of international trade?
-increased production
-decreased prices
-it opens channels of comunication between nations.

6. Two economic principles that explaine how and when specialization is advantageous:
-theory of absolute advantage
-theory of comparative advantage

7. Explain the theory of absolute advantage.
Nation specialize in the goods that it can produce more cheaply than its competitors or in the goods that no other nation is able to produce.

8. Explaine the teory of comparative advantage
Nation ought to concentrate on the products that it can produce most efficiently and profitably.

9. What is accounting?
Accounting is a process of identifying, measuring and communicating economic information so a user of information may make informed economic judgements and decision made on it.

10. Why is accounting called the ''language of bussinees?
Because of its ability to communicate financial information about an organization.

11. Who depend on a accountion system?
Various interested parties such as managers, potential investitors, creditors and the goverement
12. What does accounting system include?
Accounting system includes accurate collecting, recording, classifying, summarizing and interpreting of those business activities that can be expressed in monetary terms about the financial status of an organization.

13. Who are accountants?
People who specialize in the field of accounting are know as accountants.

14. Classification of accountants?
-public
-private
-governmental

15. What is a share(stock)?
Share represents the original capital paid into or invested in the business by its founders.

16. What is a bond?
Bond is a debt security, in which the authorized issuer owes the holders a debt and is obliged to pay interest to use.

17. What is a shareholder/stockholder?
Shareholder or stockholder is institution or person, that legally owns any part of share of stock in a public or private corporation.

18. What is a capital needed for?
To suport research, to develop company, to start up a company, etc.

19. What is accounting formula?
Assets=liabilities+owner's equity

20. What is balance sheet made of?
BS is made of 2 parts:
-list of company assets
-liabilities and owner's equity

21. Name the duties of manager and explain?
Manager ought to plan, organize, direct and control all activities.

22. What is staffing?
The selection and training of individuals for specific job functions, and charging them with the associated responsibilities.

1.What is a primary goal of business?
A primary goal of business activity is creating an economic surplus or profit.

2.What is price?
Price is the amount of money that customers pay for the product.

3.What is place?
Place is the location where a product can be a purchased.

4. What is extended marketing mix?
Extended marketing mix is 7ps model—people, processes, physical evidence, price, promotion, product and placement.

5.Elements of 4c`s:
4c`s—consumer, cost, convenience, communication.

6.What is financing?
Financing is the process of acquiring capital.