GCSE AQA Business Studies Paper 2
2024/2025 Exam Questions and Answers
| A+ Score Assured
Public limited company - 🧠 ANSWER ✔✔A public limited company can
advertise its shares and fan be listed (quoted) on tbe stock exchange. It
must have a share capital of over £50,000. It is not possible to place
restrictions on whom the shares are sold to. A chief executive officer (CEO)
and board of directors manage and oversee the business' activities.
Floatation - 🧠 ANSWER ✔✔Occurs when a private limited company
decides to become a public limited company. To do this, shares must be
sold to the general public and the firm must meet the regulations of the
Stock Exchange
Advantages of becoming a public limited company - 🧠 ANSWER ✔✔-It can
advertise its shares to the general public so it has access to a greater
amount of potential investors. It may be able to raise a much higher sum of
money than a private limited company and this could be used to finance
expansion
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 1
STATEMENT. ALL RIGHTS RESERVED
,-They attract more media coverage because they usually have more
shareholders. By becoming a plc, a business is likely to attract more
interest from television and newspapers, which provides a good form of
publicity
-Public limited companies are usually thought of as having more status
than private limited companies (and are often bigger). This can impress
customers
-Investors may be willing to buy shares because they should be able to sell
them later on relatively easily and find someone who wants to buy them
-increased negotiation opportunities with suppliers in terms of prices
because larger businesses can achieve economies of scale
Disadvantages of becoming a public limited company - 🧠 ANSWER ✔✔-
Although more media coverage can be good, it can also be bad. If a plc
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 2
STATEMENT. ALL RIGHTS RESERVED
,makes a mistake or does something wrong, the media are more likely to
cover the story than if the business was a private limited company
-A plc cannot control who buys its shares, so managers may find that a
competitor buys control of the company and takes it over (hostile takeover)
-A plc is more regulated than a limited company - it has more things it must
do according to the law e.g. it must produce more detailed information on
its finances each year and send it to its shareholders. This can be
expensive as well as giving information away to potential competitors and
the media
-When a private company becomes a public company, it brings in more
outside investors. The original owners may not agree with the views and
objectives of the new owners - they may clash when trying to agree what
the business should be doing
-It is expensive to set up, requiring a minimum set up cost of £50,000
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 3
STATEMENT. ALL RIGHTS RESERVED
, -Shareholders will expect to receive a percentage of the profits as
dividends
-Shareholders may clash when making decisions about the business
The purpose of business planning - 🧠 ANSWER ✔✔-To help set up a
business successfully, as it allows entrepreneurs to think ahead and gather
data. It helps them to assess the risk of various decisions and hopefully
make better decisions
-To help anticipate any problems. If problems are identified in advance, the
business should be better able to deal with them
-Raise finance - potential investors can judge whether they think the
business will be effective, what the managers intend to do with it and when
they are likely to see a return on their investment. An entrepreneur is able
to take a business plan into a meeting with a bank or investors to provide
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 4
STATEMENT. ALL RIGHTS RESERVED
2024/2025 Exam Questions and Answers
| A+ Score Assured
Public limited company - 🧠 ANSWER ✔✔A public limited company can
advertise its shares and fan be listed (quoted) on tbe stock exchange. It
must have a share capital of over £50,000. It is not possible to place
restrictions on whom the shares are sold to. A chief executive officer (CEO)
and board of directors manage and oversee the business' activities.
Floatation - 🧠 ANSWER ✔✔Occurs when a private limited company
decides to become a public limited company. To do this, shares must be
sold to the general public and the firm must meet the regulations of the
Stock Exchange
Advantages of becoming a public limited company - 🧠 ANSWER ✔✔-It can
advertise its shares to the general public so it has access to a greater
amount of potential investors. It may be able to raise a much higher sum of
money than a private limited company and this could be used to finance
expansion
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 1
STATEMENT. ALL RIGHTS RESERVED
,-They attract more media coverage because they usually have more
shareholders. By becoming a plc, a business is likely to attract more
interest from television and newspapers, which provides a good form of
publicity
-Public limited companies are usually thought of as having more status
than private limited companies (and are often bigger). This can impress
customers
-Investors may be willing to buy shares because they should be able to sell
them later on relatively easily and find someone who wants to buy them
-increased negotiation opportunities with suppliers in terms of prices
because larger businesses can achieve economies of scale
Disadvantages of becoming a public limited company - 🧠 ANSWER ✔✔-
Although more media coverage can be good, it can also be bad. If a plc
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 2
STATEMENT. ALL RIGHTS RESERVED
,makes a mistake or does something wrong, the media are more likely to
cover the story than if the business was a private limited company
-A plc cannot control who buys its shares, so managers may find that a
competitor buys control of the company and takes it over (hostile takeover)
-A plc is more regulated than a limited company - it has more things it must
do according to the law e.g. it must produce more detailed information on
its finances each year and send it to its shareholders. This can be
expensive as well as giving information away to potential competitors and
the media
-When a private company becomes a public company, it brings in more
outside investors. The original owners may not agree with the views and
objectives of the new owners - they may clash when trying to agree what
the business should be doing
-It is expensive to set up, requiring a minimum set up cost of £50,000
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 3
STATEMENT. ALL RIGHTS RESERVED
, -Shareholders will expect to receive a percentage of the profits as
dividends
-Shareholders may clash when making decisions about the business
The purpose of business planning - 🧠 ANSWER ✔✔-To help set up a
business successfully, as it allows entrepreneurs to think ahead and gather
data. It helps them to assess the risk of various decisions and hopefully
make better decisions
-To help anticipate any problems. If problems are identified in advance, the
business should be better able to deal with them
-Raise finance - potential investors can judge whether they think the
business will be effective, what the managers intend to do with it and when
they are likely to see a return on their investment. An entrepreneur is able
to take a business plan into a meeting with a bank or investors to provide
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 4
STATEMENT. ALL RIGHTS RESERVED
