Understanding Buisness

Question 1

What is a sole trader

Answer 1

A sole trader is a business owned and controlled by one individual

Question 2

What is a partnership

Answer 2

A business owned and controlled between 2-20 people

Question 3

What is a private limited companie

Answer 3

It is where a business owned by share holders and controlled by a board of directors

Question 4

What are 2 advantages of a sole trader

Answer 4

All profits kept by owner
Owner has complete control
Owner can choose their own working hours / holidays
More of a personal service offered to consumers
Very easy to set up

Question 5

What are the disadvantages of being a sole trader

Answer 5

Unlimited liability
Fiance is restricted
Owner has no one to share problems and workload with
Work may stop if your sick / if not it is difficult someone to trust in there absence

Question 6

What is an example of an sole trader

Answer 6

Hairdressers
Plumbers
Corner shops

Question 7

What is the advantages of a partnership

Answer 7

Partnership can bring in different areas of expertise
More finance is available
Workload can be shared
Easier to raise finance form tenders

Question 8

What is examples of disadvantages in a partnership

Answer 8

Partners have unlimited liability
Profits have to be shared between partners
Partners may disagree
If one partner leaves or dies a new partnership agreement has to be set up

Question 9

What is the factors of production

Answer 9

Land
Labour
Capital
Enterprise

Question 10

Describe two of the factors of production

Answer 10

land - in/under e.g. oil fish land
labour - workers
capital - man made machinery
enterprise - idea

Question 11

Give an example for each factor of production

Answer 11

land - wheat
labour - teacher , doctor
capital - tractor , scissors
enterprise - Nike (brand) , advert

Question 12

What is a durable good and give an example

Answer 12

A durable good is something that lasts a long time e.g. Bed

Question 13

What is a non durable good and give an example

Answer 13

A non durable good is something that dosent last long and you need to buy often e.g. Bread

Question 14

what is the difference between tangible and non tangible

Answer 14

tangible - see/touch
non tangible - can’t see

Question 15

what are the sectors of industry and give an example for each

Answer 15

Primary - farming , mining , fishing
secondary - manufacturing , man made good , Starbucks
Tertiary - services e.g. banking

Question 16

what are the sectors of the economy

Answer 16

private
public
third

Question 17

give an example for each sector of the economy

Answer 17

private - If an organisation has a profit motive e.g. Ben and Jerries
public - Organisations that are funded by the public e.g. NHS or police
third - organisation’s that are not for profit e.g. Marys Meals

Question 18

what are the external factors

Answer 18

Political
Economic
Socio-cultural
Technology
Environmental
Competitive

Question 19

What is the role of buisness in society

Answer 19

It involves taking resources and using them to produce goods and services that people consume / use in order to satisfy their needs and wants

Question 20

Describe the external factors

Answer 20

Political - any action taken by the government e.g. laws
Economic - current state of the economy
Socio-Cultural - cultural trends e.g. buying habits of customers
Technology - latest developments
Environmental - actions and laws that promote up keep of environmental
Competitive - actions of competitors that force a firm to react

Question 21

What is internal factors

Answer 21

Everything that goes on inside the buisness

Question 22

What are the internal factors

Answer 22

Financial
Human Resources
Current Technology

Question 23

Describe the internal factors

Answer 23

Financial - money in the bank / debts / cash flow
Human Resources- workers./ employees - trained / managers - capable / risk assessments
Current Technology - the effective use of technology

Question 24

What is the interest of a stakeholder

Answer 24

intrest is what the stakeholder wants from the business

Question 25

what is the influence of a stakeholder

Answer 25

influence is the action or decision the stakeholder can take that will affect the buisness

Question 26

Give examples of internal stakeholders

Answer 26

Managers
Shareholders
Employees
Owners

Question 27

give examples of external stakeholders

Answer 27

Donors (charity)
Customers
Government
Local community
Suppliers
Bank

Question 28

what is the interest and influence of an Owner

Answer 28

intrest - Profit / buisnes to succed
Influence - hire and fire staff / extend product lines

Question 29

what is the interest and influence of an Employee

Answer 29

intrest - Good salaries / good working conditions /job security
infulence - wage demands on firm / Their efforts control the performance of the firm