theme 1

Question 1

what are the features of a sole trader

Answer 1

unlimited liability

owner keeps all profit

owner keeps control

Question 2

what are the features of a partnership

Answer 2

unlimited liability

deed of partnership

greater shared risk

Question 3

what are the features of a private limited company

Answer 3

process of incorporation time consuming

limited liability

wider access to capital

Question 4

what are the features of a public limited company

Answer 4

raise capital by selling shares to the public

ability to take over other businesses

lose control of other businesses

Question 5

what does SMART stand for?

Answer 5

Specific

Measurable

Achievable

Realistic

Time bound

Question 6

what is the difference between an aim and objective

Answer 6

aim - long term

objective - short term

Question 7

what kind of skills will an entrepreneur need

Answer 7

organisation - lots to coordinate

financial management - cash flow management

managing and communicating with people

Question 8

what kind of characteristics will an entrepreneur need

Answer 8

self confidence

self determination

commitment

Question 9

what financial motives may an entrepreneur have

Answer 9

profit maximisation - as much as possible

profit satisfying - generate enough to live

Question 10

what are non financial motives of entrepreneurs

Answer 10

independence and home working

ethical stance - climate change

Question 11

benefits of intrapraneurial staff

Answer 11

solve problems

create exciting new products

Question 12

what are opportunity costs

Answer 12

the loss of other alternatives when one option is chosen

Question 13

what leader ship styles are there

Answer 13

paternalistic

democratic

laissez faire

autocratic

Question 14

what are the benefits and negatives of autocratic leadership

Answer 14

(+)high level of control over unskilled workforce

(-)low levels of motivation if employees feel not respected or valued

Question 15

what are the benefits and negatives of the democratic leadership style

Answer 15

(+)develops a team spirit

(-)decision making can take a long team time

Question 16

what are the benefits and negatives of the laissez faire leadership style

Answer 16

(+)allows employees autonomy raising motivation

(-)lack of control over workforce may miss deadlines

Question 17

what are the benefits and negatives of the paternalistic leadership style

Answer 17

(+)employees feel they are being looked after

(-)employees given no power to make decisions

Question 18

how do businesses treat employees as an asset

Answer 18

reasonable holiday and sick pay

invest in training

Question 19

how can businesses treat their staff as costs

Answer 19

pay workers the minimum

zero hour contracts

Question 20

why is a flexible workforce important

Answer 20

adapt employees to changing demands of business environment

Question 21

what are the methods used to have a flexible workforce

Answer 21

multi skilling employees

outsourcing

part time and temporary contracts

Question 22

what is recruitment and selection

Answer 22

the process of attracting , identifying and selecting the best workers

Question 23

what is a person specification

Answer 23

details of characteristics , qualifications and experience of desired employee

Question 24

what is a job description

Answer 24

states title of job and outlines task, duties and responsibilities

Question 25

what is internal recruitment

Answer 25

role is filled by promoting employees from within the organisation

Question 26

what is external recruitment

Answer 26

bringing in new employees from outside the organisation

Question 27

what methods of training are there

Answer 27

on the job training

off the job training

Question 28

what is the benefits and negatives of on the job training

Answer 28

(+)output may continue

(-)disruptive for others

Question 29

what are the benefits and negatives of off the job training

Answer 29

(+) safer

(-) may be costly