Past Paper Questions Flashcards
Define the term entrepreneur.
Define the term enterprise
Define the term partnership
Outline TWO benefits of establishing a partnership over a sole trader type business
State FOUR reasons why a person may start a business
State two advantages of being an entrepreneur
State two disadvantages of being an entrepreneur
Identify four characteristics of an entrepreneur
Identify TWO problems faced by entrepreneurs
Explain TWO ways in which entrepreneurship benefits the economy
State THREE characteristics of cooperatives
- Owned by its members
- It has limited liability
3.Profits are shared among members
Distinguish between EACH of the following:
Sole Traders and Partnership
Distinguish between EACH of the following:
Private and Public Sector
List THREE types of business documents
State THREE characteristics of a sole proprietorship
- Only one owner
- Unlimited Liability
- Easy to start
- Requires small amount of capital to set up
State THREE characteristics of public liability companies
Identify TWO stakeholders who are involved in a business
Describe the concept of ‘mobile money’.
Mobile money is the use of a mobile phone in order to transfer funds between banks or accounts, deposit or withdraw funds or pay bills. It further encompasses using a mobile device to buy products. This may be in a physical or electronic setting.
Outline TWO advantages and TWO disadvantages of the ‘barter system’. (4 marks)
Advantages:
1. It encouraged specialisation in production and better use of available resources.
2. It allowed for greater variety in diet as early families could exchange different food items with each other.
3. It provided a means to avoid losing any surplus produced.
4. It increased the total volume and variety of goods and services available for trade.
Disadvantages:
The need for a double coincidence of wants.
Difficulty establishing an agreed rate of exchange.
Indivisibility of goods.
Inability to store wealth.
Outline THREE ways in which a free-market economy differs from a planned or command economy. (6 marks)
State TWO advantages of a mixed economic system (2 marks)
State TWO disadvantages of a mixed economic system (2 marks)
Give 2 examples of countries with a mixed economic system (2 marks)
What is the significance of the word ‘Limited’ in the name of a company?
State the main purpose of each of the following documents:
Memorandum of Association
Articles of Association
Partnership Agreement
State three functions of a business
Identify THREE differences between a market economy and a planned economy
Name a country which has a planned economy
Name a country which has a mixed economy
