SAC 1A

Question 1

sole trader

Answer 1

a business that is owned by one person.

Question 2

partnerships

Answer 2

a business that is owned by between 2 and 20 people.

Question 3

private limited company

Answer 3

an incorporated business that is owned by up to 50 private shareholders.

Question 4

public listed company

Answer 4

a business that is owned by shareholders where the shares of a business can be purchased or sold on an open market.

Question 5

social enterprise

Answer 5

a business that exists primarily to fulfil a vision that benefits the community or social need rather than shareholders.

Question 6

government business enterprise

Answer 6

a business that is owned and operated by the government.

Question 7

business objectives

Answer 7

make a profit
increase market share
fulfil a market need
fulfil a social need
meet shareholder expectations

Question 8

market share

Answer 8

the percentage of total sales in a market in comparison to competitors in the market.

Question 9

market need

Answer 9

meeting customer expectations.

Question 10

social need

Answer 10

selling goods or services to make the world a better place.

Question 11

shareholder

Answer 11

shareholders are those that own part of the company.

Question 12

shareholder expectations

Answer 12

shareholders expect return on their investment.

Question 13

stakeholders

Answer 13

someone with a vested interest in the business.

Question 14

areas of management responsibility

Answer 14

operations
finance
Human Resources
sales and marketing
technology support

Question 15

operations

Answer 15

area of the business that produces goods and services.
turns inputs into outputs (e.g materials getting manufactured into clothing to sell).
the manager needs to oversee this to ensure goods and services are produced efficiently and have the desired quality.

Question 16

finance

Answer 16

responsible for managing the money and budgets of the business.
keeping track of finances allows the manager to make informed decisions.

Question 17

human resources

Answer 17

manages the relationship between employees and the business.

manager needs to bring in the right people to their business and ensure their skills are developed and motivated.

Question 18

sales and marketing

Answer 18

responsible for promoting the business and its products and to sell them to potential customers.
marketing team is responsible for product development, pricing strategies, promotion and product distribution.

Question 19

technology support

Answer 19

responsible for implementing and maintaining the technologies within a business.
technology is important for communication, data storage and processing and operations

Question 20

incorporated

Answer 20

refers to turning a sole trader or partnership into a company formally recognised as its own legal business structure set apart from the individuals who founded the business.

Question 21

sole trader: advantages and disadvantages

Answer 21

advantages:
simple to set up and operate.

disadvantages:
unlimited liability

Question 22

partnership: advantages and disadvantages

Answer 22

advantages:
workload can be shared amongst partners

disadvantages:
potential for disagreements over key decisions.

Question 23

public listed company: advantages and disadvantages

Answer 23

advantages:
is a separate legal entity.
limited liability

disadvantages:
the money the business makes belongs to the company.

Question 24

private limited company: advantages and disadvantages

Answer 24

advantages:
separate legal entity.
limited liability.

disadvantages:
more complex business structure to start and run.

Question 25

social enterprise: advantages and disadvantages

Answer 25

advantages:
meeting a social need can encourage community support, increasing profits.

disadvantages:
difficult to obtain finance to begin business.

Question 26

government business enterprise: advantages and disadvantages

Answer 26

advantages:
may invest in areas that the private sector may hesitate to invest in.

disadvantages:
there can be political interference.

Question 27

Corporate Social Responsibility

Answer 27

refers to when a business not only abides by the law but goes above and beyond basic legal requirements. This includes considering their ethical, community and environmental impact.