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

• Retained Profit

• Trade Credit

• Overdraft

• Loans

• Share Capital

• Debentures

• Crowd funding

Match the definition to the term.

• FRANCHISOR

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

• FRANCHISE

• 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

• FRANCHISEE

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

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

• 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

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

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

Put the correct term under the correct heading

Groups:

(a) PRODUCT

,

(b) PRICE

,

(c) PLACE

,

(d) PROMOTION

• Goods

• Physical Store

• Social Media

• Services

• Online

• Net Cost

• Discount

• Paid for Advertising

The Business Plan. Match the label to the description.

a

b

c

d

e

f

g

h

i

Money in v Money Out

Gain or Loss

What the Business plans to sell

How the Business is Funded

Site of the Business

The 4P's

The Aims and Objectives of the Business

Predicted Sales

Primary & Secondary, Target Markets

The Nature of the Business

Groups:

(a) PRIMARY (extract raw materials)

,

(b) SECONDARY (manufacture goods)

,

(c) TERTIARY (provide services)

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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