B1

Question 1

name the six business objectives

Answer 1

profit
growth
survival
cash flow
social
ethical

Question 2

profit

Answer 2

to achieve sales revenue that is higher than total costs
PROFIT = SALES REVENUE-TOTAL COST

Question 3

growth

Answer 3

to increase in size by value of sales or volume of sales
done by opening new stores or launching new products

Question 4

survival

Answer 4

to continue to exist as a business
this is a primary objective for a new business

Question 5

cash flow

Answer 5

the flow of cash in and out of a business
target to have enough cash to meet day to day expenses

Question 6

social

Answer 6

to behave in a way that benefits society
by creating employment, supporting local community or improving educational standards

Question 7

ethical

Answer 7

to behave in a way which is considered to be morally correct
by treating key stake holders

Question 8

what is a sole trader

Answer 8

an individual who owns and runs their own business

Question 9

name advantages of being a sole trader

Answer 9

cheap and easy to set up
all profits go to the sole trader
autonomy in decision making

Question 10

name disadvantages of being a sole trader

Answer 10

unlimited liability
lack of cover when ill
retaining employees can be difficult