Business Studies Topic 1

Question 1

What is a business

Answer 1

An organisation that produces a good or supplies a service

Question 2

Example of a business

Answer 2

ASDA, which sells food and other goods for money

Eletrician goes to customer’s houses and fixes their electrics in return for money

Question 3

Examples of products

Answer 3

Cars

Washing machines

Mobile phones

Question 4

A service

Answer 4

an act that a business person carries out for you in exchange for money

Question 5

Examples of a service

Answer 5

Accountancy

Travel agents

Cleaning

Question 6

4 factors of production

Answer 6

Land – somewhere to produce the goods

Labour – people to work in the business

Capital

Enterprise

Question 7

Reasons for starting a business

Answer 7

To produce goods

To supply a service

To distribute products

Question 8

How social enterprises help people

Answer 8

Aim to tackle the effects of poverty

Provide jobs and tackle unemployment

Help children with a social need

Question 9

How social enterprises can help the planet

Answer 9

Reduce pollution

Tackle deforestation

Halt climate change

Question 10

Primary sector

Answer 10

extracts raw materials from the planet

Mining materials, chopping down trees for wood

Question 11

Secondary sector

Answer 11

Goods are manufactured from raw materials into finished goods

Question 12

Examples of secondary sector

Answer 12

Plastic

Metal

Other materials made into cars

Question 13

Tertiary sector

Answer 13

concerned with providing services for its customers

Question 14

Examples of tertiary sector

Answer 14

Lorries and transport of goods

Question 15

Entreprenueur

Answer 15

A person who starts a business and takes on financial risk in the hope of making a profit

Question 16

Business Initiative

Answer 16

internal campaigns in companies set out to achieve certain goals

Question 17

What can businesses use social media for

Answer 17

Attract customers

Get customer feedback

Increase your market reach

Question 18

Inflation rates

Answer 18

The rates of increase in prices for goods and services

Question 19

Interest rates

Answer 19

the cost of borrowing money or the return for investing money

Question 20

Why would anyone want to be an entrepenuer

Answer 20

They want to keep all profits of a business for themselves so they can earn more money

They have an interest or obby which grows into a business

They want to be their own boss and make their own decisions instead of being employed and reporting to someone else

Question 21

Entrepenuership

Answer 21

Refers to the ability to be an entrepenuer to take risks to develop a business idea

Question 22

Social enterprise

Answer 22

A business set up to help society rather than to make a profit

Question 23

What is a good

Answer 23

physical products that are either purchased or produced for the purpose of being sold

Question 24

Customer

Answer 24

Someone who buys a product

Question 25

What makes a business successful

Answer 25

When it can meet the needs and wants of customers effectively

Question 26

Consumer

Answer 26

Someone who uses goods and services produced by businesses

Question 27

Opportuniy cost

Answer 27

something that is given up in order to do something else

Question 28

Example of opportuniy cost

Answer 28

this could be when a business must choose between two different office locations they will face opportunity costs for the location they do not choose

Question 29

How do inflation rates affect businesses

Answer 29

by supply pressure as they pay more to buy materials and products

Question 30

How do interest rates affect businesses

Answer 30

Rising interest rates make your business debt more expensive

Question 31

What are unemployment rates

Answer 31

the percentage of people in the labour force that are unemployed

Question 32

What impact do unemployment rates have on businesses

Answer 32

For many businesses, this will result in lower sales as people spend less

Question 33

What are exchange rates

Answer 33

A rate at which one currency will be exchanged for another currency

Question 34

How do exchange rates impact a business

Answer 34

By changing the attractiveness of their products to overseas customers

Question 35

Capital

Answer 35

money to get the business started

Question 36

Enterprise

Answer 36

drive or motivation from the owners to start a business

Question 37

3 methods of external growth a business could choose

Answer 37

Merge Takeover Franchise

Question 38

Explain one benefit to a business of using part-time staff

Answer 38

Flexibility to cover breaks and holidays

Question 39

Explain one benefit of providing induction training for employeees

Answer 39

new recruits become productive as quickly as possible

Question 40

Identify 3 stakeholders of a business

Answer 40

Customers Owners Suppliers

Question 41

How to work out percentage increase of 36 to 54 items sold a week

Answer 41

54 - 36 = 18 18 ➗ 36 x 100 = 50% increase

Question 42

How to work out percentage increase

Answer 42

Find the difference between 2 numbers (a - b) Divide the difference with the original number And x100 (c ➗ b x 100) = increase

Question 43

Sole trader

Answer 43

a self-employed person who owns and runs their own business as an individual

Question 44

What's a partnership business

Answer 44

arrangement by two or more parties to manage and operate a business and share its profits

Question 45

Examples of a partnership business

Answer 45

GoPro & Red Bull Uber & Spotify Apple & MasterCard

Question 46

Explain, using one business example, why conflict may arise between different business stakeholders

Answer 46

Employees will want higher wages but owners will want lower costs and higher profits

Question 47

Explain one benefit to a successful business of expanding through franchising.

Answer 47

A successful business can grow quickly with limited risk