Business Activity

Which of the following characteristics does a succesful entrepreneur have? Tick all answers that apply...

• Creative / innovative

• Willing to take calculated risks

• Determined & resilient

• Risk averse

• Confident & good at communication

What might an entrepreneur risk when starting up a business? Tick all that apply...

• They might have invested their own personal savings

• Relationships with family & friends might suffer due to long hours

• Giving up a job / steady income

• Getting rich if the business does well

Why is it useful to create a business plan when starting a new business? Tick all that apply...

• It guarantees the business will succeed

• It can help obtain finance from a bank / investors

• It helps to identify the resources needed to operate

• Undertanding the needs of customers helps the business to make better marketing decisions, thus reduces the risk of failure

Which of the following is a benefit of being a Sole Trader?

• The owner has limited liability

• Finance can be raised by selling shares to friends and family

• The owner has complete control over business decisions

• Workload can be shared between the owners

Which of the following is a benefit of being a Partnership?

• The partners have limited liability

• Finance can be raised by selling shares to friends and family

• One person has complete control over business decisions

• Each partner can contribute finance and skills to the business

Which of the following is a benefit of setting a business up as a Private Limited Company (Ltd)?

• The owners have limited liability

• It's the quickest and cheapest type of business to set up

• The finances of the business can be kept private

• Dividends must be paid to the shareholders

Which of the following is a benefit of setting a business up as a Public Limited Company (plc)?

• The owners have unlimited liability

• Large sums of finance can be raised by selling shares on the stock exchange

• The business can be taken over if someone buys 51% or more of the shares

• Members of the public can buy products and services from the business

What does the term unlimited liability mean?

• The owners of the business are personally responsible for the debts of the business, and might have to use their own money to pay off debts

• The owners are legally seperate from the business

• The owners are not personally responsible for paying off the debts of the business with their own money / assets

• The owners of the business are entitled to keep all of the profits

Which of the following objectives is a small, new business most likely to have when entering a competitive market?

• To make £1 million profit in the first month of trading

• To expand to 3 other countries

• To survive the first year of trading

• To be the market leader within the first 6 months

Which of the following is an internal stakeholder of a business?

• The government

• A supplier

• A customer

• An employee