Understanding business past paper questions

Question 1

Discuss advantages and disadvantages of being a private limited company

Answer 1

shareholders have limited liability.
easy to to raise finance as additional. shares cannot be sold to the public. profit is shared between shareholders.

Question 2

Describe the influence of stakeholders on a private limited company

Answer 2

Shareholders through the level of investments they make. managers through the decisions they make for the business. Suppliers by increasing or decreasing their prices. Customers can chose to buy or not to buy from the business

Question 3

Identify 2 internal factors that could affect the success of an organisation

Answer 3

finnace, technology, employees

Question 4

Outline ways in which an organisation can ensure good customer service

Answer 4

having polite and helpful employees, having an after sales srvice, selling good quality products at the best price, having an after sales service

Question 5

Define the term non durable good

Answer 5

Goods which last a limited amount of time

Question 6

Describe 2 sectors of the economy

Answer 6

the public sectors aims to break even. the private sector aims to maximise profit. the private sector is owned by private individuals the public sector is owned by the governemnt

Question 7

Compare the objectives of a sole trader with those of a charity

Answer 7

A sole trader aims to be socially responsible responsible. Whereas a charity also aims to be socially responsible. A sole trader aims to maximise profit. Whereas a chairty aims to increase donations

Question 8

Outline the factors of production

Answer 8

land is the natural resources used by the business, labour is the human resources employed in a business, capital is the money or equipment used t start a business, enterprise is the entrepreneur who combines all the other factors together

Question 9

outline the impact of poor customer service

Answer 9

There will be an increase in complaints, the organisations image may be damaged, customer satisfaction will decrease

Question 10

Explain the effect of internal technological factors

Answer 10

An organisation may update their technology. This means there will be time spent on training all employees

Question 11

Explain the effect of social influences

Answer 11

There can be changes in trends and fashion. This means the organisation may need to update their products.

Question 12

Describe methods of ensuring good customer service

Answer 12

Having high quality products at the best price, having an after sales service, having polite and helpful employees
use high quality raw materials

Question 13

Explain the impact of political influences

Answer 13

The government can increase the minimum wage. This means the organisation might lose profit
The government can decrease taxation levels. This means customers will have more disposable income which could increase sales

Question 14

explain the advantages and disadvantages of forming a partnership

Answer 14

Partners can share the worload fo running a business. This means the output produced can increase.
partners can specialise in the business.
The is a chance fo arguments and disagreements. Therefore this can slow down decision making.
The business has unlimited liability. This means partners might lose personal posessions to repay business debts

Question 15

Explain how economical factors can affect an organisation

Answer 15

The rate of interest can decrease. This means customers are more likely to borrow money to purchase products.
Unemployment kevels can be low. This means an organisation can raise their prices.

Question 16

Explain how technological influences can affect an organisation

Answer 16

An organisation can introduce e-commerce. This means there will be an increase in sales around the world.
There can be an advancement in the technology used in the organsiation. This means the business will need to train all employees.

Question 17

Explain how social influences can affect an organisation

Answer 17

There has been changes in trends and fashions. This means a business may have to update their products

Question 18

Outline the objectives of an organisation in the third sector

Answer 18

Raise awareness of issues, be socially responsible, provide us with services

Question 19

justify the importance of good customer service

Answer 19

will result in fewer complaints from customers, the organsiations image will improve, can lead to brand loyalty, can attract new customers

Question 20

Explain how internal factors could affect the success of an organisation

Answer 20

Technology used by the business can break down. This means there can be delays in production.
The organisation has a lack of finance. This means they may not be able to pay back loans and bills on time
Having highly trained employees. This means they may be able to offer good customer service.

Question 21

explain the ways internal factors can affect an organisation

Answer 21

Business may introduce new technology. this means all staff will have to be trained.
Employees can take industrial action. This means a busiensses productivity will be slowed down
The business may not ahve the finaince to raise wages. This emans staff may eb demotivated

Question 22

outline the information contained in a busienss plan

Answer 22

the busienss name
the product or service offered
who the target market is
the numebr of employees required

Question 23

explain the impact of stakeholders

Answer 23

employees cna carry out industrial action. therefore the amount being produced will be impacted
owner can make major decision whic can elad to mistakes. this means the business may lose profit

Question 24

Explain the ways in which an organisation can ensure good customer service

Answer 24

having polite and helpful employees. this means compliants are less likely.
having an after sales service. This emans any issuel will be dealt with easier

Question 25

Describe fetaures of a social enetrprise

Answer 25

they opperate i the thirs sector of the economy
they make a profit but reinvest i tto help their cause
it is run byu volunteers

Question 26

explain the effects of technology external factor

Answer 26

the business can introduce e-commerce. this means they will have an increase in sales all over the world
social media can eb used for promotion. thereofe customer awareness of the busienss will increase

Question 27

Compare the public and private sector in terms of ownership, control and finance

Answer 27

Private sector is owned by private individuals. whereas the public sector is owned by the governemnt. The private sector is funded by the owners capital. whereas the public sector is financed by taxes
the private sector is controll by sole trader, partners or board of directors. whereas the public sector is controlled by mps and councillors

Question 28

Explain the advantages and disadvantages of a private limited company

Answer 28

Shareholders have limited liability. Therefore shareholders only lose investments in the events of the business going bust.
A legal agreement must be set up. this measn it can take longer to set up the business.
Shareholders must be consulted about decisions. this means it can slow down decision making
It means there will be increased specialisation. This means shareholders could bring new skills

Question 29

Describe the skills and qualities a successful entreprenur should have

Answer 29

show have the ability to make good decisions
the determination to make the business successfull
the creativity needed for good ideas
the willingness to take risks

Question 30

Describe the effect of external factors on a business

Answer 30

competition can try to steal customers from the business
technology- social media increases customer awareness about the business
changes in trends and fashion can lead to higher demand

Question 31

compare a charity with a private limited company in terms of ownership, control, finance

Answer 31

Charities are owned by trustees. Whereas private limited company is owned by a minimum of one shareholder
charities are controlled by trustees or appointed managers. whereas a private limited company is controlled by a board of directors
Charities are financed through donations. whereas a private limited company is financed by private individuals buying shares