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Business Studies Mock Exam IGCSE TOPIC
1. Exam Questions And Answers 100% Pass
Business Objective - ANS A goal or target set by a business. Eg. To make a profit
The importance of having clear business objectives - ANS - provide a sense of direction
- motivate staff
- used to measure performance
Sole trader - ANS A business owned and operated by one person
Benefits of being a sole trader - ANS - owner has complete control of business
- easy to set up
- owner keeps all profits
Drawbacks of being a sole trader - ANS - unlimited liability
- owner may feel isolated
- difficult to raise finance
- lack of continuity
Partnership - ANS A business owned by 2 to 20 people
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Benefits of being in a partnership - ANS - more capital can be raised by owners
- more ideas and specialisation
- improved continuity
Drawbacks of being in a partnership - ANS - disagreements between partners
- profits have to be shared
- unlimited liability
Limited company - ANS A limited liability company that is owned by shareholders
Shareholder - ANS A part owner of a limited liability business
Difference between private and public limited companies - ANS Ltds can only sell their shares
privately. Plcs can sell their shares to the public
Private limited company (Ltd) - ANS A limited liability business that is owned by shareholders
and whose shares can only be bought and sold privately
Benefits of being a Ltd - ANS - limited liability
- easier to keep control of the business than compared to Plc's
Drawbacks of being an Ltd - ANS - sharing the profits
- more paperwork
- harder to raise capital through selling shares because they can't be sold to the public
Public limited company (Plc) - ANS A limited liability company that is owned by shareholders
and whose shares can be bought and sold to the public
Business Studies Mock Exam IGCSE TOPIC
1. Exam Questions And Answers 100% Pass
Business Objective - ANS A goal or target set by a business. Eg. To make a profit
The importance of having clear business objectives - ANS - provide a sense of direction
- motivate staff
- used to measure performance
Sole trader - ANS A business owned and operated by one person
Benefits of being a sole trader - ANS - owner has complete control of business
- easy to set up
- owner keeps all profits
Drawbacks of being a sole trader - ANS - unlimited liability
- owner may feel isolated
- difficult to raise finance
- lack of continuity
Partnership - ANS A business owned by 2 to 20 people
, ©EVERLY 2025 ALL RIGHTS RESERVED
Benefits of being in a partnership - ANS - more capital can be raised by owners
- more ideas and specialisation
- improved continuity
Drawbacks of being in a partnership - ANS - disagreements between partners
- profits have to be shared
- unlimited liability
Limited company - ANS A limited liability company that is owned by shareholders
Shareholder - ANS A part owner of a limited liability business
Difference between private and public limited companies - ANS Ltds can only sell their shares
privately. Plcs can sell their shares to the public
Private limited company (Ltd) - ANS A limited liability business that is owned by shareholders
and whose shares can only be bought and sold privately
Benefits of being a Ltd - ANS - limited liability
- easier to keep control of the business than compared to Plc's
Drawbacks of being an Ltd - ANS - sharing the profits
- more paperwork
- harder to raise capital through selling shares because they can't be sold to the public
Public limited company (Plc) - ANS A limited liability company that is owned by shareholders
and whose shares can be bought and sold to the public
