Updated 2025 Pearson Edexcel GCSE Study Guide: Actual Exam Questions with
Verified Answers, Detailed Rationales, and 100% Accuracy – Guaranteed Pass |
Graded A+
Unlimited liability - (answers)The owner is responsible for the businesses debts
1 disadvantages of a partnership - (answers)1. unlimited liability
2. profits are shared
3. there may be disagreements
4. 20 people max.
5. partnership ends when one partner leaves
请您
6. decisions made by one partner can affect all partners
3 disadvantages of a franchise - (answers)1. unlimited liability
2. franchisees need to pay an initial fee as well as ongoing fees (royalties) and/or shares of their
profits
3. less control for the franchisee as they will have to run the promotions currently being
advertised
4. cannot made independent decisions
5. brand reputation can be damaged by other franchisees
3 advantages of a franchise - (answers)1. lower risk as business model is already successful
2. support and training provided by the franchisor
3. franchisees benefit from national marketing campaigns
4. market research done at head office level, the business will get the benefit of the promotional
activity and signage all done on a national level
5. less competition as territories are divided up
3 advantages of a partnership - (answers)1. very few procedures to set up
,2. partners may have a wider expertise and can share ideas
3. decision making is shared
4. financial information is kept private
5. more sources of finance
6. risk is shared
7. easier to raise finance to establish or grow a business
Partnership - (answers)A business owned by 2-20 people who share the financial risk, decision
making, and the profits
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Franchisor - (answers)The person or business who offers to franchise other businesses its trading
methods, products, and business logos
Royalty - (answers)A payment made to the franchisor based on the sales turnover of the
franchise
Sole trader/proprietor - (answers)A business owned by one person who has unlimited liability
Franchisee - (answers)A person or business buying the franchise
3 advantages of sole proprietorship - (answers)1. they make all decisions
2. no disagreements and quick decisions
3. they keep all the profit
4. quick and easy to set up
5. all financial information kept private
3 disadvantages of sole proprietorship - (answers)1. unlimited liability
2. may be difficult to raise money to start or grow a business
, 3. a lot of pressure on just one person
4. difficult to run if the sole trader is sick or needs time off
Franchise - (answers)One business gives another business permission to trade using its name and
products in return for a fee and a share of its sales
Private Limited Company (Ltd) - (answers)A company made up of people who know each other
and with limited liability
Limited liability - (answers)Risk is limited to the amount of money invested into the business.
Personal assets are not at risk.
请您
3 advantages of a private limited company - (answers)1. limited liability
2. term 'ltd' makes the business seem bigger or a more long-established business
3. can be easier to raise finance to establish or grow the business
4. business continues to trade even if the shareholders change
3 disadvantages of a private limited comapny - (answers)1. more complex to set up than a sole
proprietorship or partnership
2. disagreements between share holders
3. financial information is published
4. more requirements to report information to organisations such as HMRC and Companies
House
Business Risk - (answers)The possibility that an enterprise may have lower profits than expected
or experience a loss
A business could create a new product by... - (answers)1. mix and match
2. new version of an old product/service
Verified Answers, Detailed Rationales, and 100% Accuracy – Guaranteed Pass |
Graded A+
Unlimited liability - (answers)The owner is responsible for the businesses debts
1 disadvantages of a partnership - (answers)1. unlimited liability
2. profits are shared
3. there may be disagreements
4. 20 people max.
5. partnership ends when one partner leaves
请您
6. decisions made by one partner can affect all partners
3 disadvantages of a franchise - (answers)1. unlimited liability
2. franchisees need to pay an initial fee as well as ongoing fees (royalties) and/or shares of their
profits
3. less control for the franchisee as they will have to run the promotions currently being
advertised
4. cannot made independent decisions
5. brand reputation can be damaged by other franchisees
3 advantages of a franchise - (answers)1. lower risk as business model is already successful
2. support and training provided by the franchisor
3. franchisees benefit from national marketing campaigns
4. market research done at head office level, the business will get the benefit of the promotional
activity and signage all done on a national level
5. less competition as territories are divided up
3 advantages of a partnership - (answers)1. very few procedures to set up
,2. partners may have a wider expertise and can share ideas
3. decision making is shared
4. financial information is kept private
5. more sources of finance
6. risk is shared
7. easier to raise finance to establish or grow a business
Partnership - (answers)A business owned by 2-20 people who share the financial risk, decision
making, and the profits
请您
Franchisor - (answers)The person or business who offers to franchise other businesses its trading
methods, products, and business logos
Royalty - (answers)A payment made to the franchisor based on the sales turnover of the
franchise
Sole trader/proprietor - (answers)A business owned by one person who has unlimited liability
Franchisee - (answers)A person or business buying the franchise
3 advantages of sole proprietorship - (answers)1. they make all decisions
2. no disagreements and quick decisions
3. they keep all the profit
4. quick and easy to set up
5. all financial information kept private
3 disadvantages of sole proprietorship - (answers)1. unlimited liability
2. may be difficult to raise money to start or grow a business
, 3. a lot of pressure on just one person
4. difficult to run if the sole trader is sick or needs time off
Franchise - (answers)One business gives another business permission to trade using its name and
products in return for a fee and a share of its sales
Private Limited Company (Ltd) - (answers)A company made up of people who know each other
and with limited liability
Limited liability - (answers)Risk is limited to the amount of money invested into the business.
Personal assets are not at risk.
请您
3 advantages of a private limited company - (answers)1. limited liability
2. term 'ltd' makes the business seem bigger or a more long-established business
3. can be easier to raise finance to establish or grow the business
4. business continues to trade even if the shareholders change
3 disadvantages of a private limited comapny - (answers)1. more complex to set up than a sole
proprietorship or partnership
2. disagreements between share holders
3. financial information is published
4. more requirements to report information to organisations such as HMRC and Companies
House
Business Risk - (answers)The possibility that an enterprise may have lower profits than expected
or experience a loss
A business could create a new product by... - (answers)1. mix and match
2. new version of an old product/service
