Unit 1 AOS 2

Question 1

What are resources, natural resources, labour resources, and capital resources.

Answer 1

Resources are the people and objects that are needed for the business to function properly.
Natural resources are items used by the business that come from the natural environment. These include land, water, raw materials etc.
Labour resources refer to the people that provide their skills, effort and knowledge to the business.
Capital resources refer to the tools and machinery that are used to produce goods or perform services.

Question 2

Identify the different business structures

Answer 2

Unincorporated
Sole trader
Partnership
Incorporated
Private company
Public company
Social enterprise
Government business enterprise (GBE)

Question 3

Describe 3 Business support services

Answer 3

Solicitors: Provides advice on legal matters such as formation, registration, contracts and legislation.
Accountants: Provides advice on financial management issues and taxation obligations.
Technological support: Provides help with technological matters, such as establishing an online business presence.

Question 4

Compare the disadvantadges and advantadges of buying an existing business

Answer 4

Buying an existing business can be good as there is no start up costs, already has staff, already has a structure, already has a steady income stream, has a known customer base and good will. But this is can also be bad as it can be hard to change the previous image of the business, hard to valuate, previous owner debts could pass on you, and staff may be resistant to change.

Question 5

Compare the disadvantadges and advantadges of establishing a new business

Answer 5

Establishing a new business can be a great investment as you have freedom to how the business is set up and there is no good will in. which the owner has to pay. This also has disadvantadges too as it is high risk, can prove difficult to secure finance, slow starts, and high startup costs.