section a

Question 1

enterprising

Answer 1

innovative, imagination etc

Question 2

USP

Answer 2

the unique selling point of a business - makes them stand out, therefore, more customers e..g to be ethical

Question 3

empowerment

Answer 3

sharing information, rewards and power with employees. puts them at the heart of the organisation
providing employees with a certain degree of power & control in their day to day activities

Question 4

why might a business get fined

Answer 4

• not abiding by laws e.g. consumer protection act

- not operating ethically e.g. child labour

Question 5

memorandum of association

Answer 5

• private limited company
  includes company and directors - the official name&address of the registered offices, objectives of the company, number of shares bought etc.

Question 6

calculating profit

Answer 6

profit = revenue - total costs

Question 7

revenue

Answer 7

revenue = (selling price x quantity) - (variable costs + fixed costs)

Question 8

variable costs

Answer 8

variable cost per unit x quantity

Question 9

definition of variable costs

Answer 9

variable costs increase/decrease depending on a company’s output levels e.g. packaging, electricity, wages etc.

Question 10

organisational charts

Answer 10

flat/wide structure

hierarchal/tall structure

Question 11

break-even point

Answer 11

fixed costs ÷ (selling price - variable costs)
or
actual sales - margin of safety

Question 12

business uncertainty

Answer 12

• change in technology e.g. automation
• economic factors e.g. interest & exchange rates
• change in demand

Question 13

income statement

Answer 13

an income statement is produced by a business for a specific period of time. this is usually 12 months and produced at the end of the financial year. an income statement will include; revenue and expenses,

Question 14

effects of interest rates

Answer 14

high-interest rates will mean that both businesses and consumers will cut back on spending. people will opt to save their money.
low-interest rates will encourage spending in consumers and businesses.

Question 15

statement of financial position (balance sheet)

Answer 15

a balance sheet is a summary of the financial balances of a business, it represents the assets, liabilities and equity of a business.

Question 16

SWAT

Answer 16

strengths, opportunities, weaknesses and threats in a business. swat analysis is great for assessing these four aspects of your business.

Question 17

partnership act

Answer 17

the partnership act 1890 states that each partner is required to share the profits of the business equally, regardless of the amount contributed. each partner is jointly liable for losses suffered by the business.