unit 1 knowledge review (no answers)

Question 1

What is meant by a service
give an example

Question 2

describe one characteristic of an entrepreneur

Question 3

State two factors of production

Question 4

State and explain one sector of production

Question 5

State the four functional areas of business

Question 6

State and explain one ownership structure

Question 7

Explain what is meant by “limited liability”?

Question 8

What is the difference between a public limited company (PLC) and an organisation in the public sector
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Question 9

Explain one drawback to being a sole trader
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Question 10

Explain one benefit to being a Partnership
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Question 11

Explain one benefit to setting objectives
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Question 12

State and explain one business objective

Question 13

State two ways that shareholder value can be maximised

Question 14

Business A sells 54,000 units. The total sales in the market were 600,000 units. What is the market share of business A?

Question 15

State two stakeholder for a business

Question 16

define stakeholder

Question 17

State one objective the stakeholders of employees may have
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Question 18

Explain one way stakeholders may influence a business

Question 19

State 2 factors that may influence a businesses choice of location

Question 20

An import is……
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-A good or service produced in one country and entering another (i.e from France to the UK)

-A good or service produced in one country that is sold to another (i.e UK to France)

Question 21

State and explain one type of protectionist policy
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Question 22

Explain one benefit of locating overseas
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Question 23

State two features of a business plan
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Question 24

Explain one benefit of creating a business plan
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Question 25

A business sells 300 units for £3 each - what is their revenue
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Question 26

A business had revenue of £200,000 from selling 50,000 units. Their fixed costs are £70,000 and their variable costs are £1 per unit - what is their profit?
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Question 27

State and explain one type of economy of scale
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Question 28

State two types of organic growth (internal)
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Question 29

State and explain one type of inorganic growth (external)
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Question 30

Explain one drawback of outsourcing
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Question 31

Explain one benefit of franchising for a franchisor
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