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WorksheetsOCR GCSE Business
Total questions: 67
Worksheet time: 36mins
Select TWO true statements that relate to a sole trader. (Select two answers)
Sole traders have limited liability
Sole traders get to make all their own decisions about the business
Sole traders may find it harder to raise funds for the business
Sole traders usually get more holidays than partners or directors
Disadvantage of a Sole trader:
Expensive to create
Hard to employ people
Doesn't generate much profit
Unlimited liability
An advantage of operating as a sole trader...
Owner receives all profit
No need to pay tax
Investment from shareholders
Cheaper advertising
A company with limited liability
Sole Trader
Partnership
Public limited company
Private limited company
True or false: If a business has unlimited liability, the owners personal possessions are at risk if the business falls into debt.
True
False
Which of the following best describes the term limited liability? If the business fails:
Personal possessions of the owner can be taken to pay any debts
The owner is personally liable for all the debts of the business
There is no limit on the amount the owner has to pay to settle debts
The owner only loses the amount invested in the business
Which type of legal structure is used when two or more people join together to start a business and have unlimited liability?
Sole trader
Partnership
LTD
PLC
Which of the following is an advantage of operating a large established business as a public limited company?
Shares can be sold to the public to raise additional finance
Financial accounts are published
Shares can only be sold to invited investors to raise finance
Owners have unlimited liability
Which of the following is a disadvantage of being a public limited company?
The business is at risk of takeover
Large sums of money can be raised
Unlimited liability
Limited liability
Which of the following is a disadvantage of setting up a business as a partnership?
Shared losses
Shared workload
Shared profit
More ideas generated
Which of these has unlimited liability?
Sole Trader
Private Limited Company
Public Limited Company
Multi National Company
Someone who starts, operates and assumes the risk of a business is known as an...
Investor
Interest person
Entrepreneur
Business inventor
Items that can be seen and touched are known as...
Goods
Services
An entrepreneur needs which of the following characteristics?
very well dressed at all times.
know a person in business.
very good at accounts.
confident and determined.
Which of the following is most likely to be a benefit of business growth?
Increased costs
Increased sales
Increased competition
Increased chance of failure
Which of the following is NOT a method of internal (organic) growth?
Increasing output
Gaining new customers
Developing new products
Merging with / taking over another business
Dyson started by selling vacuum cleaners...they now sell hand dryers, washing machines, and fans. Which type of business growth is this an example of?
Internal (organic) growth
External growth
The first Tesco store was built in London. Tesco have since opened stores all accross the UK and in other countries. Which type of business growth is this?
Internal (organic) growth
External growth
Kraft took over Cadbury in 2010. Which type of business growth is this an example of?
Internal (organic) growth
External growth
Some mergers / takeovers in the UK are blocked by the government (CMA). This is because mergers / takeovers can lead to a lack of choice for consumers. A lack of competition between businesses in a market could lead to...
Lower prices and better customer service
Higher prices and worse customer service
Which of the following is an example of a horizontal merger/takeover?
A chocolate producer buys another chocolate producer
A chocolate producer buys a cocoa farm
A chocolate producer buys a chain of coffee shops
A chocolate producer buys a car producer
Which of the following best describes the term 'diversification'?
To join with a business in the same industry as you
To join with a business that can supply you with raw materials
To join with a business that sells something similar to you
To join with a business in a completely unrelated industry
If a business currently has sales of £250,000 in a market worth £2 million, what is it's market share?
10%
12.5%
17.5%
25%
A sole proprietor has to share the profits made by the business. True or False?
True
False
Select TWO true statements that relate to a sole trader. (Select two answers)
Sole traders have limited liability
Sole traders get to make all their own decisions about the business
Sole traders may find it harder to raise funds for the business
Sole traders usually get more holidays than partners or directors
Why may an entrepreneur prefer to set up a business as a partnership?
The entrepreneur would get to make all the decisions
They entrepreneur would get to keep all the profit
The business would benefit from a greater range of skills and knowledge
The business would make more money quicker
Partnerships are set up by....
One person
Two or more people
Ten or more people
Twenty or more people
Which of the following are types of limited company? (Select 2 answers)
Personal
Private
Public
Premier
A limited company is owned by
Shareholders
Stakeholders
Directors
Employees
An advantage of operating as a sole trader...
Owner receives all profit
No need to pay tax
Investment from shareholders
Cheaper advertising
A company with limited liability
Sole Trader
Partnership
Public limited company
Private limited company
True or false: If a business has unlimited liability, the owners personal possessions are at risk if the business falls into debt.
True
False
Which of the following best describes the term limited liability? If the business fails:
Personal possessions of the owner can be taken to pay any debts
The owner is personally liable for all the debts of the business
There is no limit on the amount the owner has to pay to settle debts
The owner only loses the amount invested in the business
Which type of legal structure is used when two or more people join together to start a business and have unlimited liability?
Sole trader
Partnership
LTD
PLC
Which of the following is an advantage of operating a large established business as a public limited company?
Shares can be sold to the public to raise additional finance
Financial accounts are published
Shares can only be sold to invited investors to raise finance
Owners have unlimited liability
Which of the following is a disadvantage of being a public limited company?
The business is at risk of takeover
Large sums of money can be raised
Unlimited liability
Limited liability
Which of the following is a disadvantage of setting up a business as a partnership?
Shared losses
Shared workload
Shared profit
More ideas generated
Which of the following is a disadvantage of setting up a business as a partnership?
Shared losses
Shared workload
Shared profit
More ideas generated
Someone who starts, operates and assumes the risk of a business is known as an...
Investor
Interest person
Entrepreneur
Business inventor
What is a business plan?
Written document that only outlines the business practices of the new business.
Written document that describes the financial aspects of the business.
Written document that only describes the ownership of the business.
Written document that describes all the steps necessary for opening and operating a successful business.
Why do you need a business plan?
To explain your idea
the ability to get financing.
it's a road map that sets objectives and goals for the business.
To help reduce the risk of business failure.
All of the above.
Complete the sentence: A business plan...
is useful once your business is operational but not much help during the startup phase
is not usually needed once the business is up and running
can serve as a tool for helping a business during the startup phase and for managing your business once it is up and running.
Which of the following is NOT a heading on a business plan?
The staff
The idea
Market research
Advertising campaign examples
Competitors
Which of the following is NOT a heading on a business plan?
Finance
Business objectives
The idea
The staff
Motivation techniques
Which of the following would be interested in seeing the business plan of a new company?
Customers
Potential investors
The owners of the company
Banks/ potential lenders
Local council
A business plan would normally be updated:
Every day
A month after the business starts
Once a business adjusts its aims/objectives
Every so often
Never - It stays the same in its original form
Which of the following pieces of information would you expect to find within a business plan
How much staff wages are going to cost
The production method the business will use
Information about competitors products
Opinions collected from the customers
The organisation structure of the company
What is the role and objectives of an owner (internal stakeholder)?
Which of these answers uses context.
Deliveroo uses flexible 0 hours contracts when employing it's deliverers, this means that Deliveroo's employees need to be available for delivering more frequently if they are to make more money.
The business uses flexible 0 hours contracts when employing it's staff, this means that their employees need to be available for work more frequently.
