Which of these are NOT included in a business plan? A description of the market the business is targeting. Financial information including income statements, sources of capital etc. Organisation structure & management.

Which firms they plan to merge with.

What is an 'entrepreneur'?

A person who organises, operates and takes the risk of a new business venture.

When a business 'creates or adds value' it increases: the difference between the cost of purchasing raw materials and the price the finished goods are sold for, the number of products it sells, the difference between the cost of producing a product and the price for which it is sold, the difference between the price of a product and the variable cost of its production

the difference between the cost of purchasing raw materials and the price the finished goods are sold for

What is opportunity cost?

the value of the next best option that is not selected when a choice is made.

One of the claimed benefits of having clear objectives is that

the managers have a sense of direction when taking decisions

A business might have growth as one of its objectives because

they would be more likely to increase market share

The best definition of a sole trader form of business organisation is:

the business is owned by one person

One of the disadvantages of a sole trader business is that:

capital is limited to owner’s savings and bank loans

One of the advantages of a partnership form of business organisation is that:

the business has access to more capital than a sole trader

Which of the following is NOT a feature of a private limited company? Shares can be issued to raise capital Shares can be bought and sold on the Stock Exchange All owners of the business have limited liability The business continues after the death of shareholder

Shares can be bought and sold on the Stock Exchange

Which of the following statements best applies to a public limited company (plc)? Options: It is owned by the government and is in the public sector It is owned by shareholders who can sell their shares in the Stock Exchange It is quick and easy to set up with few legal formalities Its accounts can be kept private and it receives little coverage in the business press

It is owned by shareholders who can sell their shares in the Stock Exchange

The main reason why the owners of many private limited companies convert their businesses into public limited companies is because:

they want to raise additional capital to expand the business

One of the main drawbacks of many public limited companies is that:

there can be a loss of control by the original owners as additional shares are sold

Which of the following statements about most public limited companies is true? They are owned and controlled by the workers, They are owned by the directors but controlled by the shareholders, The are owned by shareholders but controlled by directors, They are owned and controlled by the government

They are owned by shareholders but controlled by directors

One of the reasons for a business buying a franchise is because:

the risks of failure are lower as it is buying a well known business idea

One of the advantages to a business of selling a franchise licence to franchisees is that:

the business can expand more quickly

One of the limitations for an entrepreneur of setting up a new business as a franchise is:

some decisions will be taken by the franchisor not the franchisee

Unlimited liability means that

owners are held responsible for all debt and not just limited to the amount invested in the business.

An unincorporated business is one

that does not have a separate legal identity.

Which is a franchisor? Options: Starts a business, Takes over a business, Buys into an existing brand, Allows others to use their brand name

Allows others to use their brand name

IGCSE Business Studies Section 1 Flashcards

Student preview

44 questions

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1.

FLASHCARD QUESTION

Front

Businesses including farming, fishing, forestry & the extraction of natural resources e.g. oil, minerals etc.

Back

Primary Sector

2.

FLASHCARD QUESTION

Front

Land, labour, capital and enterprise are collectively known as

Back

Factors of production

3.

FLASHCARD QUESTION

Front

Which of these is the best definition of the ‘economic problem’? Options: People do not have enough money. There are not enough resources to satisfy people’s wants. There are too many factors of production. The amount of something produced by a person, machine or industry.

Back

There are not enough resources to satisfy people’s wants.

4.

FLASHCARD QUESTION

Front

Examples of tertiary sector companies include Transport, banking, teaching, nursing, police.

Back

Transport, banking, teaching, nursing, police

5.

FLASHCARD QUESTION

Front

What is 'added value'?

Back

is the difference between the selling price of a product and the cost of bought-in materials and components.

6.

FLASHCARD QUESTION

Front

Which of the following is an example of PRIMARY business activity? Factories, Shops, Schools, Farmers

Back

Farmers

7.

FLASHCARD QUESTION

Front

Which of the following is an example of SECONDARY business activity? School, Factories, Shops, Farmers

Back

Factories

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