Download this complete,fully solved and updated actual exam for CCEA Business Studies AS Unit 1|GUARANTEED SUCCESS

Business Enterprise Any operation established to produce or supply goods/services desired by consumers generally with a view to making profit. Factors of Production The inputs of land, labour, capital and enterprise required to produce or supply goods/services. Previous Play Next Rewind 10 seconds Move forward 10 seconds Unmute 0:00 / 0:15 Full screen Brainpower Read More Entrepreneur Someone who starts and runs a business and has the responsibility of the risks involved. Entrepreneurial Characteristics 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 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 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. Sole Trader 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 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 A binding legal document which states the formal rights of partners in the business. Sleeping Partner A partner who contributes capital and shares in profits/losses but does not participate in decision making. Limited Partnership 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 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 Investors who have bought a share in the company. Limited Liability Each shareholder is only liable for the original amount of money invested in the business. Franchise 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 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. Stakeholder Groups Specific groups of people who have a genuine interest in the activities of a particular business and who will be affected by the activities of the business. Examples include owners, employees, customers, lenders, government, suppliers, management and community. Consumer Goods and Services Market This is where households purchase the goods/services they desire and businesses try to meet their demand by selling the goods/services in store, online etc. Capital Goods Market This in an industrial market selling tangible goods required by businesses who supply the consumer goods market. Items include machinery, equipment, vehicles and tools. Labour Market This is where those seeking work can interact with employers who are competing to hire them. Demand The desire to own anything, the ability to pay for it, and the willingness to pay.