Business Studies Pearson Edexcel
GCSE Exam 2025 With 100% Correct
Answers
Explain one advantage of a sole trader business over a partnership or private limited company (3) -
correct answers ✔✔Due to the single ownership, a sole trader has complete autonomy over decision
making, unlike a partnership (1), where the other business owners need to be consulted before making
key business decisions (1). Hence, faster decisions are more likely in sole traders than in a partnership (1)
Explain one reason why a person may choose to start up and run a franchise operation - risk (3) - correct
answers ✔✔The risk of failure is lower when a person starts up and runs a franchise operation rather
than a completely independent business (1). This is because the product / service the business is selling
has been tried and tested (1), and any problems encountered by established franchisees have already
been met and overcome (1)
Explain one reason why a person may choose to start up and run a franchise operation - money (3) -
correct answers ✔✔It might be easier to raise money to start up a franchise operation than a completely
independent business (1). This is because the franchise idea has been tried and tested elsewhere (1),
and therefore banks and other investors recognise that they are not taking such a big risk (1)
Explain one benefit to an entrepreneur of buying a franchise to start a business - correct answers ✔✔An
entrepreneur could receive support and training (1). This means they are less likely to make poor
business decisions (1), which reduces the chance of business failure (1)
The entrepreneur could benefit from national advertising campaigns (1) because they have access to a
larger advertising budget (1). This means the business will have increased brand awareness (1)
Explain one advantage to business owners of having limited liability (3) - correct answers ✔✔Limited
liability means that the owners (shareholders) can only lose the money invested in the business if it fails
(1) because they are not responsible for all losses made by the business (1) which means they will not
lose their personal possessions (1)
GCSE Exam 2025 With 100% Correct
Answers
Explain one advantage of a sole trader business over a partnership or private limited company (3) -
correct answers ✔✔Due to the single ownership, a sole trader has complete autonomy over decision
making, unlike a partnership (1), where the other business owners need to be consulted before making
key business decisions (1). Hence, faster decisions are more likely in sole traders than in a partnership (1)
Explain one reason why a person may choose to start up and run a franchise operation - risk (3) - correct
answers ✔✔The risk of failure is lower when a person starts up and runs a franchise operation rather
than a completely independent business (1). This is because the product / service the business is selling
has been tried and tested (1), and any problems encountered by established franchisees have already
been met and overcome (1)
Explain one reason why a person may choose to start up and run a franchise operation - money (3) -
correct answers ✔✔It might be easier to raise money to start up a franchise operation than a completely
independent business (1). This is because the franchise idea has been tried and tested elsewhere (1),
and therefore banks and other investors recognise that they are not taking such a big risk (1)
Explain one benefit to an entrepreneur of buying a franchise to start a business - correct answers ✔✔An
entrepreneur could receive support and training (1). This means they are less likely to make poor
business decisions (1), which reduces the chance of business failure (1)
The entrepreneur could benefit from national advertising campaigns (1) because they have access to a
larger advertising budget (1). This means the business will have increased brand awareness (1)
Explain one advantage to business owners of having limited liability (3) - correct answers ✔✔Limited
liability means that the owners (shareholders) can only lose the money invested in the business if it fails
(1) because they are not responsible for all losses made by the business (1) which means they will not
lose their personal possessions (1)
