paper 1

Question 1

What is an entrepreneur?

Answer 1

A person who takes risks to start and run a business.

Question 2

What is a sole trader?

Answer 2

A business owned and run by one person with unlimited liability.

Question 3

What is a partnership?

Answer 3

A business owned by two or more people who share responsibility and profits.

Question 4

What is a private limited company (Ltd)?

Answer 4

A business owned by shareholders but shares are not sold publicly.

Question 5

What is a public limited company (Plc)?

Answer 5

A business owned by shareholders with shares traded on the stock exchange.

Question 6

What is limited liability?

Answer 6

Owners are only responsible for business debts up to their investment amount.

Question 7

What is unlimited liability?

Answer 7

Owners are personally responsible for all business debts.

Question 8

What are business aims and objectives?

Answer 8

Goals a business sets to guide its operations and measure success.

Question 9

What are stakeholders?

Answer 9

Individuals or groups affected by a business’s activities, such as employees and customers.

Question 10

What is job production?

Answer 10

A method where products are made individually and are often customized.

Question 11

What is batch production?

Answer 11

A method where identical products are made in groups before switching to another batch.

Question 12

What is flow production?

Answer 12

A continuous production process where identical products are made on an assembly line.

Question 13

What is just-in-time (JIT) stock control?

Answer 13

A system where stock is only ordered when needed, reducing waste and storage costs.

Question 14

What is procurement?

Answer 14

The process of purchasing materials and resources needed for production.

Question 15

What is quality control?

Answer 15

Inspecting finished products to ensure they meet required standards.

Question 16

What is quality assurance?

Answer 16

Ensuring quality at every stage of production rather than just at the end.

Question 17

What is revenue?

Answer 17

The income generated from selling goods or services.

Question 18

What is profit?

Answer 18

The difference between total revenue and total costs.

Question 19

What is cash flow?

Answer 19

The movement of money into and out of a business.

Question 20

What is break-even?

Answer 20

The point where total revenue equals total costs, meaning no profit or loss.

Question 21

What is a budget?

Answer 21

A financial plan estimating income and expenses over a period of time.

Question 22

What is gross profit?

Answer 22

Sales revenue minus the cost of goods sold.

Question 23

What is net profit?

Answer 23

Gross profit minus all expenses, including rent, wages, and taxes.

Question 24

What is retained profit?

Answer 24

Profit kept in the business for reinvestment rather than distributed to owners.

Question 25

What is market research?

Answer 25

The process of gathering information about customers, competitors, and market trends.

Question 26

What is primary research?

Answer 26

Collecting new data directly from sources, such as surveys and interviews.

Question 27

What is secondary research?

Answer 27

Using existing data from reports, government statistics, or competitors.

Question 28

What is market segmentation?

Answer 28

Dividing a market into groups based on characteristics like age, income, or location.

Question 29

What is the marketing mix (4Ps)?

Answer 29

Product, Price, Place, Promotion - the key factors in marketing strategy.

Question 30

What is branding?

Answer 30

Creating a unique name, image, or logo to distinguish a business from competitors.

Question 31

What is pricing strategy?

Answer 31

The method used to set the price of a product, such as cost-plus or competitive pricing.

Question 32

What is recruitment?

Answer 32

The process of hiring new employees.

Question 33

What is training?

Answer 33

Providing employees with skills and knowledge to perform their jobs effectively.

Question 34

What is motivation?

Answer 34

Encouraging employees to work harder through incentives like bonuses or promotions.

Question 35

What is an organisational structure?

Answer 35

How a business is arranged, showing hierarchy and roles of employees.

Question 36

What is delegation?

Answer 36

Giving employees authority to make decisions and take responsibility for tasks.

Question 37

What is span of control?

Answer 37

The number of employees a manager directly supervises.

Question 38

What is a tall organisational structure?

Answer 38

A business with many levels of hierarchy and narrow spans of control.

Question 39

What is a flat organisational structure?

Answer 39

A business with fewer levels of hierarchy and wider spans of control.