A level Business

What is an entrepreneur?

• Someone who is employed

• Someone who doesn't work

• Someone who has set up their own business

• Someone who works from home

What challenges does an entrepreneur face?

• money

• responsibility

• paperwork

• all of the above

What is a problem of being an entrepreneur?

• Making all the decisions by yourself

• Keeping all the profits

Which one of the following isn't likely to be a common business objective?

• To make profit
• To provide a service to the community
• To pay as much tax as possible
• To increase market share

A business might have growth as one of its objectives because

• they will be able to benefit from diseconomies of scale
• they would be more likely to increase market share
• the shareholders always prefer growth to increased profits
• all businesses have to grow in order to survive

Most businesses are likely to put survival as their main objective when

• the competition is  becoming weaker
• the economy is becoming weaker
• the government plans to increase grants to firms
• consumers are increasing their demand for products

Social enterprises are likely to have which combination of objectives?

• Maximum returns for owners and increased market share
• Community service, profits and protection of the environment
• Survival and an increased share price
• Increased profits for owners and protection of the community

A business with one owner is known as a:

• Company

• Sole trader

• Partnership

Advantages of a partnership are:

• The partners split the profit

• Unlimited liability

• Raise more capital than a sole trader

• Share the workload

A private held coporation may change into a public corporation because it wants:

• Limited liability

• To raise additional finance

• Unlimited liability

• To avoid takeover