IGCSE Business Studies - Topic 1 (Knowledge Test)

An individual who has an idea for a business and takes the financial risk of starting and managing a new business.

• managers

• entrepreneurship

• entrepreneur

• leaders

Which of the following ARE the characteristics of successful entrepreneurs? (more than 1 answer)

• self-motivated and determined

• Risk-taker

• Understand the functions of many fields, such as marketing, finance, operations and HR

• Process-driven

Why do you need to make a business plan as a business owner? (two answers)

• It is an annual procedure for every business to do.

• It gives sense of purpose and direction

• It could help you to gain financial support for your business from lenders, e.g. banks.

• It gives your competitors sense of competition to provide better products for consumers in the same industry.

Business start-up! What is it?

• an authorization granted by a government or company to an individual or group enabling them to carry out specified commercial activities

• A business that is formed and registered under any of the previous companies' laws.

• A newly formed business. It usually starts small, but some might grow to become much bigger

• a person who is the exclusive owner of a business, entitled to keep all profits after tax has been paid but liable for all losses; a sole proprietor.

Here are the reasons why the government support business start-ups, except.....

• Job creation

• Support the economy for the region

• Provide a variety of goods and/or services

• Reduce the competition in the same industry

How does a government support business start-ups? (2 answers)

• no tax paid for the first several years

• grants and interests free or low-interest loans

• rent-free premises for workers

• help to provide information, advice, and support from specialist agencies (consultant)

One way to measure a business is by seeing the percentage earned of that business against the total revenue of all businesses in the same industry.

• capital employed

• value of output

• market share

• number of employees