GCSE Edexcel Business Unit 1.4

A ​ (a)   is a business that is owned and run by one person. There is only one owner, but they may have ​ (b)   who work for them. Sole traders are usually start-ups or small businesses. Like ​ (c)   they are subject to​ (d)   meaning that the business owner or owners are ​ (e)   for all of the debts of the business, no matter what the value is.

• sole trader
• employees
• partnerships
• unlimited liability
• personally liable

Private Limited Companies and Public Limited have ​ (a)   . This means that the business owner or owners are ​ (b)   up to the value of their financial investment in the business. Having Limited liability ​ (c)   . Sole Traders and Partnerships risk losing ​ (d)   to pay their debts as they have ​ (e)   .

• Limited Liability
• only responsible for business debts
• reduces risk
• personal 
• personal assets
• unlimited liability

Same Partnerships may have Limited Liability under the Limited Liability Partnerships Act 2000.

• TRUE

• FALSE

Organize these options into the right categories

Groups:

(a) SHORT TERM FINANCE

,

(b) LONG TERM

• Loans

• Trade Credit

• Retained Profit

• Crowd funding

• Share Capital

• Overdraft

• Debentures

Match the definition to the term.

• FRANCHISOR

• A business that agrees to manufacture, distribute or sell branded products under the licence of a franchisor

• FRANCHISE

• The right given by one business to another to sell goods using its name

• FRANCHISEE

• A business that gives franchisees the right to manufacture, distribute or sell its branded products in return for a fixed sum of money or royalty payment

Organize these options into the right categories

Groups:

(a) Proximity to the Market

,

(b) Proximity to Labour

,

(c) Proximity to Materials

,

(d) Proximity to Competiton

• Farms tend to be located in rural areas as it is easier to produce the materials they need.

• Hairdressers, Corner Shops and Takeaways tend to be located near their main customers near

• Petrol stations tend to be away from rivals but fast food shops are to high footfall

• People in the Fishing industry tend to live near coastal waters

Put the correct term under the correct heading

Groups:

(a) PRODUCT

,

(b) PRICE

,

(c) PLACE

,

(d) PROMOTION

• Paid for Advertising

• Discount

• Physical Store

• Online

• Net Cost

• Services

• Goods

• Social Media

The Business Plan. Match the label to the description.

a

b

c

d

e

f

g

h

i

The 4P's

Money in v Money Out

Predicted Sales

What the Business plans to sell

How the Business is Funded

Gain or Loss

Primary & Secondary, Target Markets

The Aims and Objectives of the Business

Site of the Business

The Nature of the Business

Groups:

(a) PRIMARY (extract raw materials)

,

(b) SECONDARY (manufacture goods)

,

(c) TERTIARY (provide services)

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• 
• 
• 
• 
• 
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• 
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One of the key documents used to ​ (a)   is ​a (b)   . There maybe times of the year when they may lose money. They can then use this information to make changes to ​ their​ (c)   .
A good, clear ​ (d)   will also make ​ (e)   easier from lenders such as banks or investors.

• minimize risk
• cash flow forecast
• budget
• business plan
• obtaining finance