Business Unit 1

Question 1

what is an aim in a business

Answer 1

Its long term

Question 2

Describe the difference between a businesses Financial VS non-financial objectives

Answer 2

Financial:
- profit
- growth
- survival
- market share
, financial security

non-financial:
- customers satisfaction
- independence
-control
- social

Question 3

Why might a businessess objectives chnage as the business evolves?

Answer 3

• business might already have fulfilled their goal
• internal reasons like: motivation
• technology, new softwares
• market condition: more competition
• legislation: laws on tax, carbon footprint

Question 4

Define a sole trader:

Answer 4

A sole trader is when a single individual works in business, this person makes all the profit and makes all the decisions by themselves

Question 5

does a sole trader have limited or unlimited liability? and what does that mean?

Answer 5

a sole trader has:
unlimited liability

meaning: they are personally responsible for all the debts of the business

Question 6

state a few advantages of being a sole trader?

Answer 6

• easy to set up due to little documents to sign
• owner has all control of the business
• all profit belongs to the owner
• simple tax arrangement
• can provide a flexible, personal service

Question 7

state a few disadvantages of being a sole trader?

Answer 7

• the owner has limited skills such as: ideas for growth, ways of improvement etc
• the owner is responsible for all the debts in the business
• long hours of hard work due to lots of responsibility for the owner
• no business continuity, if the owner dies the business dies as well

Question 8

what is a partnership?

Answer 8

when two or more people join together to own a business

Question 9

in a partnership is there limited or unlimited liability? and what does that mean ?

Answer 9

has unlimited liability meaning the personal is in charge of the businesses profit