Business Studies
Business activity and people — Topics 1-2
- 1.
A small bakery changes from sole-trader ownership to a private limited company. Explain one advantage and one disadvantage of this change for the owner.
[4 marks] · no calculator - 2.
A firm employs 80 people. During the year, 12 employees leave. Calculate labour turnover and state one possible consequence of a high result.
[4 marks] - 3.
A company that catches fish, a company that cans the fish, and a company that sells the canned fish in shops belong respectively to which sectors? A All primary B Primary, secondary, tertiary C Secondary, tertiary, primary D All tertiary
[1 mark] · no calculator - 4.
A furniture maker buys wood worth $50 and turns it into a chair that sells for $200. Explain the concept of added value in this example.
[2 marks] · no calculator - 5.
Explain what is meant by limited liability, and why this might encourage someone to invest in a company.
[2 marks] · no calculator - 6.
Explain one advantage to two friends starting a business together of forming a partnership rather than each operating as a separate sole trader.
[2 marks] · no calculator - 7.
Explain one reason why a growing private limited company might choose to become a public limited company by selling shares on a stock exchange.
[2 marks] · no calculator - 8.
Explain what is meant by a social enterprise, and how it differs from a typical profit-driven business.
[2 marks] · no calculator - 9.
Explain the difference between internal growth and external growth for a business.
[2 marks] · no calculator - 10.
Explain why survival, rather than maximising profit, is often the main objective of a business in its first year of trading.
[2 marks] · no calculator - 11.
A large multinational car manufacturer opens a new factory in a developing country. Analyse one benefit this could bring to that country.
[2 marks] · no calculator - 12.
An entrepreneur's own skill in organising land, labour and capital to start a new business is itself a fourth factor of production, known as: A Land B Labour C Capital D Enterprise
[1 mark] · no calculator