Paper 1

Question 1

Define the term public limited company (line 1). [2 marks]

Answer 1

• Owned by shareholders who have limited liability
• Managed by Board Of Directors
• Offers shares to the public on stock exchange (raising capital from a larger pool of investors)

Question 2

State two features of a charity (line 104). [2 marks]

Answer 2

• Exclusively states that whatever the charity does, it is for the benefit of the public and not for profit for the charity
• Relies of generosity of individuals through receiving funds to support the charity’s activities (can be done through fundraising methods, etc)

Question 3

Explain two advantages for SVT being a public limited company (line 1). [4 marks]

Answer 3

• Increased access to capital by issuing shares to the public. Greater financial resources and to invest in its operations or expand its business activities.

Question 4

Define the term vision statement (line 2). [2 marks]

Question 5

Describe the purpose of a vision statement (line 116). [2 marks]

Question 6

Define the term corporate social responsibility (CSR) (line 95). [2 marks]

Question 7

Describe two benefits to SVT of improving its corporate social responsibility (CSR) (lines 95 - 125). [2 marks]

Question 8

Identify two external stakeholders of SVT. [2 marks]

Question 9

Define the term acquisition (line 32). [2 marks]

Question 10

State two methods of internal growth for SVT (line 31). [2 marks]

Question 11

State two methods of external growth for SVT (line 90). [2 marks]

Question 12

Define the term economies of scale (line 57). [2 marks]

Question 13

Explain two advantages of internal growth for SVT (line 31). [4 marks]

Question 14

Describe two features of a takeover (line 49). [4 marks]

Question 15

Explain two advantages of a takeover as a method of growth for SVT (lines 49 and 56). [6 marks