Bussiness term 2

Question 1

Identify two reasons why a government might support business start-ups.

Answer 1

Job Creation: Start-ups create jobs, reducing unemployment.
Innovation and Competition: They encourage new ideas and increase market competition

Question 2

State two types of business organisation other than partnership

Answer 2

1.sole trader business
2. private limited company

Question 3

Outline two disadvantages of being a business partnership.

Answer 3

Shared Liability: Partners are personally liable for business debts, risking personal assets.
Potential for Disagreements: Differences in opinion or management style can cause conflicts and hinder decision-making.

Question 4

Explain two ways used to motivate employees

Answer 4

Financial Rewards: Bonuses and pay raises to motivate employees.

Recognition: Acknowledging good work to improve morale.

Question 5

List any four stakeholders

Answer 5

Employees
Customers
Owners
Suppliers

Question 6

Explain why some businesses fail

Answer 6

Poor Cash Flow: If a business doesn’t manage its money properly, it may run out of funds to pay for expenses and could fail.

Lack of Market Demand: If customers don’t want the product or service, the business won’t make enough money to survive

Question 7

Define added value

Answer 7

Added value is the enhancement a business gives to a product to make it more desirable, often through features, design, or branding

Question 8

Define secondary sector

Answer 8

he secondary sector in business refers to industries that process raw materials into finished goods or products

Question 9

list two and explain 2 finanacial methods of motivation

Answer 9

Job Security: Ensuring stable employment, reducing financial anxiety, and motivating employees to stay loyal and perform consistently.
Salary Increases: Regular raises in pay can motivate employees to maintain or improve their performance

Question 10

Explain two factors that can be used to determine the size of the business. which is likely to be the best way to use.

Answer 10

Revenue: This is how much money a business makes from selling its products or services. The more money it makes, the larger it is considered to be. For example, big companies like Apple or Amazon make billions of dollars, which makes them large businesses.

Number of employees: This is how many people work for the business. A larger business usually needs more employees to handle different tasks. For example, a small store might have a few employees, but a big chain like McDonald’s needs many people to run multiple locations.