1.5 Entrepreneurs & Leaders

Question 1

Social Objectives

Answer 1

Obligations of business towards consumers.

Question 2

Cost Efficiency

Answer 2

Saving money by improving a product or process.

Question 3

Shrinkflation

Answer 3

Product shrinks but price stays the same.

Question 4

Corporate Social Responsibility (CSR)

Answer 4

Strategy to take a positive social role.

Question 5

Name 3 business objectives, how they work and what type of businesses they apply to.

Answer 5

Survival
- Small, new businesses
- Keeping the business operating

Employee Welfare
- All businesses to an extent
- Facilities, financial etc

Profit Maximisation
- All businesses to an extent
- Increasing Revenue and reducing costs

Question 6

Sole trader + Pros & Cons

Answer 6

Single person with 100% ownership of a business

+ Easy to set up
+ Less capital needed
- Unlimited Liability
- Difficult to raise capital

Question 7

Partnership + Pros & Cons

Answer 7

A business with 2 or more owners

+ Easy to raise capital
+ Profits go to partners
- Unlimited Liability
- Partners can disagree

Question 8

Franchise

Answer 8

Business model/brand sold/rented to someone to manage.

Question 9

LTD

Answer 9

Shares not available for public purchase

+ Limited Liability
+ Credibility & Trust
- Accountancy fees
- Limited access to investments

Question 10

PLC

Answer 10

Shares available for public to buy

+ Limited Liability
+ Raise finance through Share capital
- Loss of control
- Increased Legal responsibilities

Question 11

Collective Bargaining

Answer 11

Employees coming together to negotiate for better conditions.

Question 12

Opportunity Cost

Answer 12

Cost of foregoing the next best alternative.

Question 13

Trade Off

Answer 13

A compromise due to limited resources.

Question 14

Leader

Answer 14

Ability/Action of leading a group/organisation (In charge of …)