Business paper 1

Question 1

Give the 4 main characteristics of being an entrepreneur

Answer 1

1. Creativity
2. Risk taking
3. Determination
4. Confidence

Question 2

What are 2 potential rewards for risk taking?

Answer 2

• Financial
• Self satisfaction

Question 3

What are 3
potential drawbacks for risk taking?

Answer 3

• Health
• Strained relationships
• Loss of finance

Question 4

What should go into a business plan? (Name 3)

Answer 4

• The business idea
• The people running the business
• Competitors
• Market research
• Finance
• Objectives of the business
• The target market

Question 5

What are the 4 main roles of a business plan?

Answer 5

1. Identifying gaps in the market
2. Helping with finance
3. Identifying resources that a business needs to operate
4. Achieving business aims and objectives

Question 6

Give 2 advantages of being a sole trader

Answer 6

1. Easy to set up
2. Profits
3. Control
4. Financial information is private

Question 7

Give 2 disadvantages of being a sole trader

Answer 7

1. Unlimited liability
2. Illness
3. Shortage of capital
4. Hours of work
5. Skill shortage
6. Continuity

Question 8

Give 2 advantages of being in a partnership

Answer 8

1. Capital
2. Easy to set up
3. More skills in the business
4. Workload is shared
5. Financial information is private

Question 9

Give 2 disadvantages of being in a partnership

Answer 9

1. Profit is shared
2. Unlimited liability
3. Shortage of capital
4. Slower decision - making
5. Continuity

Question 10

What are the 5 business aims/objectives?

Answer 10

1. Profit
2. Growth
3. Market share
4. Survival
5. Providing a service

Question 11

How might a businesses aims and objectives differ from being a new business compared to an already established business

Answer 11

A new business will want to survive whereas an established business will want to grow or earn profit.

Question 12

Who are the 2 main internal stakeholders?

Answer 12

1. Employees
2. Owners

Question 13

Who are the 4 main external stakeholders?

Answer 13

1. Customers
2. Local community
3. Suppliers
4. Government

Question 14

What are the two ways a business can grow?

Answer 14

1. Organically
2. Externally

Question 15

Give 2 examples of organic growth

Answer 15

1. Gaining new customers
2. Developing new products

Question 16

Give 2 examples of external growth

Answer 16

1. Merger
2. Takeover

Question 17

What does the human resources department deal with?

Answer 17

• The organisation of workers
• Communications in the workplace
• The recruitment and selection of workers

Question 18

Name the 2 types of organisational structures and describe them both

Answer 18

Flat structure has less layers
Tall structure has more layers

Question 19

Give 2 advantages of tall structures

Answer 19

1. The span of control is likely to be narrower
2. There is more opportunity for promotion

Question 20

Give 2 advantages of being a flat structure

Answer 20

1. Wider span of control will means managers can delegate easily
2. Less chance of miss communication as communication is now clearer

Question 21

Give 1 advantage and 1 disadvantage of being a part time worker

Answer 21

A
It is cheaper and less responsibility
D
Part time usually means a lower income

Question 22

Give 1 advantage and 1 disadvantage of working from home

Answer 22

A
They might be more motivated
Can do more work
Save costs and space
D
They can exchange ideas easily
The worker may produce less
May miss out on the social aspect of work

Question 23

Name the 3 types of verbal communication

Answer 23

1. Phone
2. Meetings
3. Presentations

Question 24

Name the 3 types of written communication

Answer 24

1. Letters
2. Social media/websites
3. Emails and texts

Question 25

Explain how using a website can have advantages and disadvantages to a business

Answer 25

A The products are available 24/7 There is a wider target market Customers can buy from home D The website could stop working There is a lot of advancement in technology so the website could become outdated It needs to be updated regularly

Question 26

Name the 2 steps for recruitment

Answer 26

1. Analysis of human resources needs 2. Advertise the job

Question 27

Name the 2 steps for selection

Answer 27

1. Shortlisting the candidates 2. Selecting who to interview from the shortlist

Question 28

Name the 2 types of recruitment and define them

Answer 28

Internal recruitment - Employing from inside the business External recruitment - Employing from outside the business

Question 29

What could be in a job advertisement

Answer 29

- Duties or tasks - Qualifications which may be needed - Salary details - Place of work - Hours of work - Contact address - Details of how to apply for the job

Question 30

Name at least 3 methods of selection

Answer 30

1. Letter of application 2. Application from 3. CV 4. Interviews 5. Tests and presentations 6. Group activities 7. References

Question 31

What benefits do well - motivated workers bring to a business?

Answer 31

- High employee performance - Less need to supervise them - Reduced waste of raw materials - Better delivery of services

Question 32

What are the two types of motivation and give an example of each?

Answer 32

Financial - Wages - Bonusses Non - financial - Praise - Working environment

Question 33

What might a business train their workers towards?

Answer 33

- Management skills - Personal development - Product knowledge - Health and safety training

Question 34

What are the two types of training and give an advantage and disadvantage of each?

Answer 34

Off the job training A - Experts give the training so it is more professional D - They may gain the skills and then leave On the job training A - The training is more specific to the business D - The workers need to train them so there will be less productivity

Question 35

What could a business discriminate against?

Answer 35

- Race - Ethnicity - Sex / Gender - Religion / belief - Sexual orientation

Question 36

How could a business discriminate against a worker?

Answer 36

- Pay them less - Not promote them - Not train them properly

Question 37

Name the 3 types of production

Answer 37

1. Batch production Where a product is made in sections 2. Job production Where one employee makes the whole product 3. Flow production Where every employee does one part of the product

Question 38

Give an advantage and a disadvantage of each type of production

Answer 38

Job production A - Products are usually high quality D - Costs will be high as workers need to be skilled Batch production A - The products are made suited for the customer D - Takes time to switch between the products Flow production A - Large amounts can be made D - Jobs on an assembly line can be repetitive and so can be very boring for the workers, making them lose motivation

Question 39

Describe the difference between quality control and quality assurance

Answer 39

Quality control is checking a product is good quality before selling Quality assurance is checking a product is good quality while it is being made

Question 40

Give 3 methods of selling

Answer 40

1. E - commerce 2. Face to face 3. Telesales

Question 41

How could a business provide good customer service (name 3 points)

Answer 41

1. After - sales service 2. The importance of good product knowledge 3. Customer engagement

Question 42

What 3 things should a product be to be able to sell it?

Answer 42

1. Of satisfactory quality 2. Fit for purpose 3. As described

Question 43

What factors influence where a business might choose to be located?

Answer 43

Proximity to: - Labour - Suppliers - Customers - Competitors - Raw materials

Question 44

What is the role of procurement (3 points)

Answer 44

1. Identifying customer needs 2. Choosing suppliers 3. Ordering goods and services