Unit 4 revision

Question 1

What is a Sole Trader?

Answer 1

The only owner of a business which has unlimited liability

Question 2

What is meant by unlimited liability?

Answer 2

A legal obligation on the owner of a business to settle (pay off) all debts of the business

Question 3

What is meant by Limited liability?

Answer 3

When shareholders of a company are not personally liable for the debts of the company; the most they can lose is the value of their investment in the shares of the company.
Companies

Question 4

What are Records?

Answer 4

Evidence of what has happened in the past; records could be kept in paper form or in computer files for example.

Question 5

What are HMRC HM Revenues and Custom?

Answer 5

The government authorities in the UK responsible for collecting tax.

Question 6

What is Vat?

Answer 6

A tax on the value of sales: it is paid by businesses to government.

Question 7

What is Income Tax?

Answer 7

A tax on the value of income earned by workers; this includes sole traders who have to pay income tax on their net earnings.

Question 8

What is National Insurance Contributions (NICs)

Answer 8

A tax on the earning of workers; Employers’ National Insurance contributions are paid by employers on the wages of their workers; employees and sole traders have to pay National Insurance contributions on their earnings.

Question 9

What is Corporation Tax?

Answer 9

A tax on the profits of limited companies.

Question 10

What is Customer base?

Answer 10

The customer base is the group of customers who repeatedly purchase the goods or services of a business

Question 11

What is Customer service?

Answer 11

The experience that a customer gets when dealing with a business and the extent to which that experience meets and exceeds customer needs and expectations.

Question 12

What is Customer Satisfaction?

Answer 12

A measure of how much products meet customers’ expectations.

Question 13

What is Repeat purchases (or repeat business)?

Answer 13

Orders or sales that occur from customers who have bought the product or service in the past.

Question 14

What is Curriculum Vitae

Answer 14

A brief list of the main details about a person, including name, address, qualifications and experience.

Question 15

What is Motivation?

Answer 15

In work, the desire to complete a task and meet the needs of the business consistently.

Question 16

What is Private limited companies?

Answer 16

is often a small business such as an independent retailer in a market town. Shares do not trade on the stock exchange.

Question 17

What is a Public limited company?

Answer 17

is usually a large, well-known business. This could be a manufacturer or a chain of retailers with branches. Shares trade on the stock exchange.

Question 18

Give 2 reasons why businesses have legislation?

Answer 18

So taxes can be collected

To protect customers from illegal business practices

Question 19

What are three documents that are used in the recruitment process?

Answer 19

Job description
Job advert
Application form

Question 20

What are the 8 main stages of the recruitment process?

Answer 20

1) Identify Job vacancy
2) Draw up Job description
3) Draw up Person specification
4) Advertise job
5) Applications
6) Shortlisting
7) Interviewing
8) Selecting and offering hob

Question 21

Name 3 elements of customer focus for a business?

Answer 21

Identifying needs
Anticipating customer needs
Meeting customer needs

Question 22

What is a Ltd?

Answer 22

A private limited company

Question 23

What is a PLC?

Answer 23

A public limited company/

Question 24

What 2 taxes do Sole traders pay?

Answer 24

NIC
Income tax
VAT

Question 25

What are 3 rates of VAT in the UK?

Answer 25

1) Standard rate (You pay VAT on most goods and services in the UK at the standard rate, which is 20%)
2) Reduced rate (In some cases, for example children’s car seats and domestic fuel or power, you pay a reduced rate of 5 per cent.)

3) Zero rate (There are some goods on which you don’t pay any VAT, like: Food,
books, newspapers and magazines , young children’s clothing and footwear, special exempt items -for example equipment for disabled people.

Question 26

What 2 taxes do limited companies pay?

Answer 26

Income

Corporation tax

Question 27

Give 3 examples of good customer service

Answer 27

Dispatching orders quickly
Going the extra mile to get what customers want
Responding immediately to any complaints.

Question 28

Name 2 ways you can achieve repeat purchases?

Answer 28

Cheaper prices than competitors

Promotions and special offers

Question 29

What is Person specification?

Answer 29

list individual qualities of the person required, eg qualifications, experience and skills.

Question 30

What is Job description?

Answer 30

Explain the work to be done and typically set out the job title, location of work and main tasks of the employee.

Question 31

What are two types of training offered?

Answer 31

On the job

Off the job

Question 32

What is On the job training?

Answer 32

where experienced members of staff explain a job or a skill.

Question 33

What is Off- the hob training?

Answer 33

where outside experts are paid to explain a job or a skill.

Question 34

What is an advantage and disadvantage of off the Job-training ?

Answer 34

Adv= A wider range of skills or qualifications can be obtained
Disadv = More expensive – e.g. transport and accommodation

Question 35

What is an advantage and disadvantage of on the Job-training ?

Answer 35

Adv = Generally most cost-effective
Disadv = Quality depends on ability of trainer and time available

Question 36

What are the areas that an Employee must abide by to protect employees?

Answer 36

Recruitment ( employees cannot discriminate on age, sex gender or disability
Pay ( paid equally)
Discipline( protection from unfair dismissal)
Working hours