AQA BUSINESS PAPER 1 EXAM QUESTIONS AND ANSWERS

AQA BUSINESS PAPER 1 EXAM QUESTIONS AND ANSWERS Why do business complete a business plan? - ANSWER -1. Creating a business plan forces the owner to think carefully about what the business is going to do and what resources are needed. This will help them to calculate how much start-up capital is needed. 2. The plan can be used to convince financial backers (bankers) that the business is a sound investment. 3. If the business is a bad idea, the planning should help the owner or the financial backers relative this an an early stage. Reduces waste in time and money. Risk and uncertainties of starting a business which can't be controlled. - ANSWER -1. The health of the economy. The UK entered a sharp recession in 2009 that very few people predicted which led to may business closed as a result. 2. The actions of competitors. Few business know what their competitors are planning What are the seven factors influencing the location of a business? - ANSWER -1. Location of raw materials 2. Labour supply 3. Transport 4. Economies of concentration 5. Communication links 6. Location of the market 7. Government policy field research (primary research) examples - ANSWER - Questionnaires, telephone surveys, customer/supplier feedback and focus groups Advantages of field research - ANSWER -1. Useful for donating new information, and getting customers views on products 2. Specific and relevant to the business 3. Up to date research Disadvantages of field research - ANSWER -1. Large samples are the most accurate but are also the most expensive 2. To codify the research it's time-consuming 3. Only large business can conduct large snakes sizes smaller business must have small sample sizes Desk research (secondary research) examples - ANSWER -Market research reports (such as mingle), Government publications (such as Family expenditure survey or social trends), and articles in newspapers, magazines and the internet Advantages of desk research - ANSWER -1. Cheaper than field research 2. Easily found 3 instantly available 4. Doesn't take as long to complete Disadvantages of desk research - ANSWER –