GSCE Business Studies (AQA) Exam With
Complete Solution Graded A+
Reasons to start a business - Answer - Sense of satisfaction
- Want to be their own boss
- Want to keep all profit
Primary sector - Answer Made up of organisations which are at the first stage of
production and use raw materials
Secondary sector - Answer Made up of organisations which are at the 2nd stage of
production process, involved in using primary resources & converting these into
resources
Tertiary sector - Answer Made up of organisations that provide a service
Objectives - Answer Survival, Being ethical, Providing a good product, Earning Profit
Survival - Answer Get the name known, make a profit
Providing a good product - Answer Doing a good job and making something you're
proud of
Earning profit - Answer Earn enough to live a good standard of living
Being ethical - Answer Fair wages, treating suppliers fairly & using fair trade products
Environmental/social expectations - Answer - How a business looks after the
environment?
- Does it recycle?
- What resources are they using?
Objective - Answer A target that is set for a business to achieve
Not-For-Profit - Answer Set up to achieve objectives other than profit (e.g. Charity)
Floatation - Answer Occurs when a ltd becomes a plc and has its share listed on the
Stock Exchange.
Stock exchange - Answer A market for shares of PLC's
, Profit - Answer Revenue - costs
Unlimited liability - Answer The owner is personally and fully responsible for all losses
and debts of the business
Legal change - Answer Legislation may affect costs or demand of the products
Technological change - Answer Constant changing in market in tech, creating new
products, influence way we shop and how
Economic change - Answer The income in the economy (GDP), cost of borrowing
money can change (interest rates), rate at which prices are increasing (inflation)
Public Limited Company (PLC) - Answer Business ownership structure that is
incorporated and has shares that can be bought and sold by anyone
Advantages of PLC's - Answer Much more money can be raised, helps company
expand
Disadvantages of PLC's - Answer Can be hard to get lots of shareholders to agree on
how business is run, Risk of takeover, accounts have to be made public
Soletraders - Answer One person owns a business which doesn't have its own legal
identity
Advantages of Soletraders - Answer Easy to set up, Get to be your own boss & decide
what happens to profit
Disadvantages of Soletraders - Answer Work long hours, hard to raise money & doesn't
have its own legal identity
Niche Market - Answer Small segment of a larger market offering a specialised product
designed to meet the distinctive needs of a group of customers.
Market share - Answer Value of sales / Sales in market x 100
Partnership - Answer 2 - 20 people in an incorporated company
Advantages of a partnership - Answer More owners means more ideas, more people to
share workload & grow faster
Disadvantages of a partnership - Answer each partner is legally responsible for what all
other partners do, unlimited liability, profits are shared between partners
Complete Solution Graded A+
Reasons to start a business - Answer - Sense of satisfaction
- Want to be their own boss
- Want to keep all profit
Primary sector - Answer Made up of organisations which are at the first stage of
production and use raw materials
Secondary sector - Answer Made up of organisations which are at the 2nd stage of
production process, involved in using primary resources & converting these into
resources
Tertiary sector - Answer Made up of organisations that provide a service
Objectives - Answer Survival, Being ethical, Providing a good product, Earning Profit
Survival - Answer Get the name known, make a profit
Providing a good product - Answer Doing a good job and making something you're
proud of
Earning profit - Answer Earn enough to live a good standard of living
Being ethical - Answer Fair wages, treating suppliers fairly & using fair trade products
Environmental/social expectations - Answer - How a business looks after the
environment?
- Does it recycle?
- What resources are they using?
Objective - Answer A target that is set for a business to achieve
Not-For-Profit - Answer Set up to achieve objectives other than profit (e.g. Charity)
Floatation - Answer Occurs when a ltd becomes a plc and has its share listed on the
Stock Exchange.
Stock exchange - Answer A market for shares of PLC's
, Profit - Answer Revenue - costs
Unlimited liability - Answer The owner is personally and fully responsible for all losses
and debts of the business
Legal change - Answer Legislation may affect costs or demand of the products
Technological change - Answer Constant changing in market in tech, creating new
products, influence way we shop and how
Economic change - Answer The income in the economy (GDP), cost of borrowing
money can change (interest rates), rate at which prices are increasing (inflation)
Public Limited Company (PLC) - Answer Business ownership structure that is
incorporated and has shares that can be bought and sold by anyone
Advantages of PLC's - Answer Much more money can be raised, helps company
expand
Disadvantages of PLC's - Answer Can be hard to get lots of shareholders to agree on
how business is run, Risk of takeover, accounts have to be made public
Soletraders - Answer One person owns a business which doesn't have its own legal
identity
Advantages of Soletraders - Answer Easy to set up, Get to be your own boss & decide
what happens to profit
Disadvantages of Soletraders - Answer Work long hours, hard to raise money & doesn't
have its own legal identity
Niche Market - Answer Small segment of a larger market offering a specialised product
designed to meet the distinctive needs of a group of customers.
Market share - Answer Value of sales / Sales in market x 100
Partnership - Answer 2 - 20 people in an incorporated company
Advantages of a partnership - Answer More owners means more ideas, more people to
share workload & grow faster
Disadvantages of a partnership - Answer each partner is legally responsible for what all
other partners do, unlimited liability, profits are shared between partners
