Component 1

Question 1

How many employees in a micro enterprise?

Answer 1

0-9

Question 2

How many employees in a small enterprise?

Answer 2

10-49

Question 3

How many employees in a medium enterprise?

Answer 3

50-249

Question 4

Name 3 features of a sole trader

Answer 4

1. A sole trader is owned by just 1 person. 2. They have unlimited liability 3. A sole trader can employ people

Question 5

Name 3 features of a partnership

Answer 5

1. You can have 2-20 partners in a business. 2. Partners sign a legal agreement called a Deed of Partnership. 3. Partnerships have unlimited liability.

Question 6

Name 3 features of a private limited company

Answer 6

1. Shares are sold privately to friends and family. 2. Private limited companies have limited liability 3. Private limited companies have the letters ltd after the business name.

Question 7

What is meant by limited liability?

Answer 7

The owners assets are separate from their private assets. This means that if the business goes bankrupt only business assets can be used to pay debts.

Question 8

What is meant by unlimited liability?

Answer 8

The owners assets are not separate from their private assets. This means that if the business goes bankrupt business assets AND private assets can be used to pay debts.

Question 9

What name is given to a business that has a physical store?

Answer 9

bricks and mortar

Question 10

What name is given to a business that sells online?

Answer 10

Ecommerce

Question 11

What is mcommerce?

Answer 11

A business that sells via mobile devices

Question 12

What is the difference between a business and an enterprise?

Answer 12

Enterprises are businesses early in the growth phase

Question 13

What do you call an enterprise that exists to do good in the community?

Answer 13

A social enterprise eg a village store run by volunteers

Question 14

What is the name of a business run by someone alongside their main job or education?

Answer 14

Side hustle

Question 15

What is an LLP?

Answer 15

A limited liability partnership where a partnership has registered legally to have limited liability.

Question 16

Name the 3 business sectors?

Answer 16

Primary, secondary and tertiary

Question 17

Give an example from each business sector

Answer 17

primary eg farming, secondary eg manufacturing, tertiary eg retail

Question 18

What is the difference between B2B and B2C enterprises?

Answer 18

B2B stands for Business to Business meaning the business is selling its product or service to other businesses. B2C means Business to customer meaning the business is selling to individual customers.

Question 19

What is an aim?

Answer 19

A target for the enterprise to achieve

Question 20

Why have aims?

Answer 20

To provide a challenge
To provide a focus
To check your progress

Question 21

Name 7 types of aim

Answer 21

Profit, Break even, survival
Environment, Ethics, Expand
Sell, Sell, Sell (maximise sales)

Question 22

Give 2 examples of environmental aims

Answer 22

To use 100% renewable energy by 2025
To reduce waste by 50% this year

Question 23

How could an ethical aim relate to people’s pay?

Answer 23

To pay people a fair wage

Question 24

How might a company achieve an aim of expanding?

Answer 24

More sales, more stores, more customers or more products

Question 25

What is meant by the term 'an industry'?

Answer 25

A group of similar businesses based on the main product or service

Question 26

What industry might a cafe operate in?

Answer 26

Food or hospitality industry

Question 27

What industry might a cinema operate in?

Answer 27

The entertainment industry

Question 28

What industry might a gym operate in?

Answer 28

The sport or fitness industry

Question 29

Name the 4 reasons an entrepreneur might start their own business.

Answer 29

Be your own boss, flexibility, pursue an interest, pursue a social benefit

Question 30

What name is given to someone who starts their own business, spelt correctly!

Answer 30

entrepreneur

Question 31

Name 6 types of changes that might happen in a market

Answer 31

1. Change in social trends eg social media 2. Change in tastes 3. Technological advances 4. Economic changes 5. Changes in society priorities eg environment 6. Change in competition

Question 32

What type of change can be seen in lots of people across the country finding they are doing low paid jobs

Answer 32

Economic changes

Question 33

What type of change can be seen in 5G coverage accessible across most areas of the UK.

Answer 33

technological change

Question 34

List 3 ways an enterprise could attract new customers

Answer 34

eg discount vouchers, BOGOF, loyalty cards, sales or competitions

Question 35

Why does an entrepreneur need to manage its human resources well?

Answer 35

Human resources are staff. Staff should be motivated. Motivated staff give better customer service and also stay longer in the business.

Question 36

Why does an entrepreneur need to manage its financial resources well?

Answer 36

Financial resources include cash to pay the bills and buy stock and profit to investment in growing the business (including advertising).

Question 37

How does a business calculate profit?

Answer 37

Sales revenue - costs

Question 38

What is market research?

Answer 38

Collecting and analysing data and information about customers and competitors

Question 39

What is quantitative data?

Answer 39

Data in the form of numbers, providing simplified information without people's opinions

Question 40

What is qualitative data?

Answer 40

Data which is non-statistical, more in-depth information about people's opinions and attitudes

Question 41

What is primary market research?

Answer 41

Research gathered that is original and first-hand to find answers to the enterprise's research questions

Question 42

Give 3 examples of primary research methods

Answer 42

Focus Groups, surveys and questionnaires

Question 43

What is an open question?

Answer 43

A question where the respondent can respond using their own format

Question 44

What is a closed question?

Answer 44

A question where the respondent can only respond using a given format eg yes/no

Question 45

What is secondary research?

Answer 45

research that has already been undertaken by another organisation and therefore already exists

Question 46

Name 5 sources of secondary research?

Answer 46

Government reports, competitor materials, market reports, trade magazines, online data

Question 47

Name a company that provides market reports

Answer 47

either Mintel or Mori

Question 48

Give 2 advantages of secondary research

Answer 48

it is already collected so it is fast to access. It can provide quality information because it might be collected by experts

Question 49

Give 2 disadvantages of secondary research

Answer 49

Information can be out-of-date. Market reports can be expensive to buy.

Question 50

Define a niche market

Answer 50

specialist markets where the product needs are adapted f or small target customer group.

Question 51

What term is used for the opposite of a niche market, where a single product meets all customer needs?

Answer 51

mass market

Question 52

Give 5 examples of how to segment a market

Answer 52

Age, gender, income, location, lifestyle (AGILL)

Question 53

What does USP stand for?

Answer 53

Unique Selling Point

Question 54

What is product differentiation?

Answer 54

Features that allow the business to stand out from its competitors

Question 55

Give 2 advantages of selling in a niche market?

Answer 55

Less competition, charge higher prices, customer loyalty

Question 56

What is the difference between a patent and a copyright?

Answer 56

Patent offers legal protection for an idea or invention eg recipe. Copyright offers legal protection for an image or design eg branding

Question 57

What is meant by the term 'branding'?

Answer 57

The distinctive image, design and colour of the business eg the Coca-Cola brand

Question 58

What do the letters PEST stand for?

Answer 58

Political, Economic, Social and Political

Question 59

What is situational analysis?

Answer 59

When a business examines the influences that affect its success using PEST