CCEA BUSINESS STUDIES AS UNIT 1
EXAM QUESTIONS AND ANSWERS.
VERIFIED 2025/2026.
Business Enterprise - ANS Any operation established to produce or supply goods/services
desired by consumers generally with a view to making profit.
Factors of Production - ANS The inputs of land, labour, capital and enterprise required to
produce or supply goods/services.
Entrepreneur - ANS Someone who starts and runs a business and has the responsibility of the
risks involved.
Entrepreneurial Characteristics - ANS These are common traits found in successful
entrepreneurs and examples may include innovative, visionary, flexibility, knowledgeable, risk
taker, decisiveness, goal orientated, motivated and committed.
Adding Value - ANS A business will add value to raw materials used in its production process
so that there will be a significant difference between the cost of purchasing raw materials and
the selling prices of the finished article.
Competitive Advantage - ANS A favourable situation that a business organisation has over its
rivals arising from a marketing opportunity such as price or cost or both. It strengths and
positions a business better within the business environment.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Sole Trader - ANS A business organisation which has a single owner and in which there is no
legal distinction between the owner and the business. The owner receives all the profits and has
unlimited responsibility for all losses and debts.
Partnership - ANS A business relationship of two or more entities conducting business for
mutual benefit. They manage the business and share equal responsibility for the company's
profits and losses, and its debts and liabilities.
Deed of Partnership - ANS A binding legal document which states the formal rights of
partners in the business.
Sleeping Partner - ANS A partner who contributes capital and shares in profits/losses but
does not participate in decision making.
Limited Partnership - ANS A partnership which has at least one ordinary partner who has
unlimited liability. A limited partner contributes capital, share in profits but has limited liability.
A limited partner cannot participate in decision making.
Limited Company - ANS A business organisation which has separate legal entity from those of
its owners. The liability of the members of the company is limited to what they have invested to
the company.
Shareholders - ANS Investors who have bought a share in the company.
Limited Liability - ANS Each shareholder is only liable for the original amount of money
invested in the business.
Franchise - ANS An agreement between two parties, which gives one party the rights to
market a product or service using the trademark of another business.
Social Enterprise - ANS A business venture established to address a social issue within a
community or to improve the quality or life for citizens or the environment. All profit made is
reinvested to help achieve the social objective of the business.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
EXAM QUESTIONS AND ANSWERS.
VERIFIED 2025/2026.
Business Enterprise - ANS Any operation established to produce or supply goods/services
desired by consumers generally with a view to making profit.
Factors of Production - ANS The inputs of land, labour, capital and enterprise required to
produce or supply goods/services.
Entrepreneur - ANS Someone who starts and runs a business and has the responsibility of the
risks involved.
Entrepreneurial Characteristics - ANS These are common traits found in successful
entrepreneurs and examples may include innovative, visionary, flexibility, knowledgeable, risk
taker, decisiveness, goal orientated, motivated and committed.
Adding Value - ANS A business will add value to raw materials used in its production process
so that there will be a significant difference between the cost of purchasing raw materials and
the selling prices of the finished article.
Competitive Advantage - ANS A favourable situation that a business organisation has over its
rivals arising from a marketing opportunity such as price or cost or both. It strengths and
positions a business better within the business environment.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Sole Trader - ANS A business organisation which has a single owner and in which there is no
legal distinction between the owner and the business. The owner receives all the profits and has
unlimited responsibility for all losses and debts.
Partnership - ANS A business relationship of two or more entities conducting business for
mutual benefit. They manage the business and share equal responsibility for the company's
profits and losses, and its debts and liabilities.
Deed of Partnership - ANS A binding legal document which states the formal rights of
partners in the business.
Sleeping Partner - ANS A partner who contributes capital and shares in profits/losses but
does not participate in decision making.
Limited Partnership - ANS A partnership which has at least one ordinary partner who has
unlimited liability. A limited partner contributes capital, share in profits but has limited liability.
A limited partner cannot participate in decision making.
Limited Company - ANS A business organisation which has separate legal entity from those of
its owners. The liability of the members of the company is limited to what they have invested to
the company.
Shareholders - ANS Investors who have bought a share in the company.
Limited Liability - ANS Each shareholder is only liable for the original amount of money
invested in the business.
Franchise - ANS An agreement between two parties, which gives one party the rights to
market a product or service using the trademark of another business.
Social Enterprise - ANS A business venture established to address a social issue within a
community or to improve the quality or life for citizens or the environment. All profit made is
reinvested to help achieve the social objective of the business.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
