U1AOS3

Question 1

Define “Sole Trader”

Answer 1

A sole trader is a business model that is owned and operated by an individual.

Question 2

Define “Partnership”

Answer 2

A partnership is a business structure that is owned by 2 to 20 people.

Question 3

Define “Private Limited Company”

Answer 3

A private limited company is an incorporated business structure that has at least one director and a maximum of 50 shareholders.

Question 4

Define “Public Listed Company”

Answer 4

A public listed company is an incorporated business structure that has an unlimited number of shareholders

Question 5

Define “Online Business”

Answer 5

An Online Business is a business model that trades its goods and services via the internet.

Question 6

Define “Bricks and Mortars”

Answer 6

Bricks and Mortar is a business that has a physical store presence.

Question 7

Define “Social Enterprise”

Answer 7

A social enterprise is a business model that aims to fulfil a community or environmental need by selling goods or services.

Question 8

Define “Franchise”

Answer 8

A franchise is a business model that grants another person the right to operate under their name, use its business system, and sell its good and services.

Question 9

Define “Importer”

Answer 9

An Importer purchases goods and services from overseas and sells them in their home country.

Question 10

Define “Exporter”

Answer 10

An Exporter produces goods and services in their home country and sells them to overseas buyers.

Question 11

Define “Business Location”

Answer 11

Business Location is the physical or non-physical place that a business operates from.

Question 12

Shopping Strips, etc

Question 13

Define “Natural Resources”

Answer 13

Natural Resources are items from the organic environment that are used in the production of goods and services.

Question 14

Define “Labour Resources”

Answer 14

Labour Resources are the people who provide the business with their skills and qualifications to conduct business activities.

Question 15

Define “Capital Resources”

Answer 15

Capital Resources are man-made goods used in the production of goods and services.

Question 16

Define “Equity Capital”

Answer 16

Equity Capital is money contributed to a business by an investor in exchange for partial ownership.

Question 17

Define “Debt Capital”

Answer 17

Debt Capital is money that has been lent to a business by an external source.

Question 18

Define “Grant”

Answer 18

A grant is money given by a government or another organisation for a particular reason.

Question 19

Define “Overdraft Facilities”

Answer 19

Overdraft Facilities are agreements between banks and businesses that allow a bank account to be withdrawn below zero

Question 20

What is “Purchasing an existing business”?

Answer 20

Purchasing an existing business involves buying a business that is already set up and operating.

Question 21

What is “Establishing a new business”?

Answer 21

Establishing a new business is often the best choice for individuals with innovative business ideas that are not yet present in a market.

Question 22

Define “Business Support Services”

Answer 22

Business support services are the specialised people, facilities or amenities that aim to help businesses successfully operate.

Question 23

Business Support Services

Answer 23

Legal
Financial
Technological
Community-based
Informal networks
Formal networks
Business Mentors

Question 24

Corporate social responsibility for planning

Answer 24

Businesses should plan to implement initiatives that display corporate social responsibility in order to remain competitive in the market.