Edexcel A-Level Business Theme 1.5 Entrepreneurs and leaders overview quiz quiz

Holding shares passively as an investor while taking no part in running the business at all

Auditing the company accounts each year to check that the financial records are accurate

Setting government policy on tax and regulation that affects how businesses operate

Bearing risk and organising resources to create and run a business

The desire for independence

Maximising the profit earned by the business each year

Building up substantial personal wealth over time

Achieving long-term capital growth on the investment

A registered charity that relies entirely on donations and grants and never trades commercially

A business that trades to achieve a social or environmental mission, reinvesting surplus

A business that ignores profit entirely and makes no attempt to cover its own running costs

A government department funded out of taxation to deliver a public service to citizens

Profit maximisation

Maximising market share globally

Survival

Paying high dividends

A private limited company (Ltd)

A public limited company (plc)

An incorporated company

A sole trader

The owners' personal assets beyond their investment

The company itself from ever going bankrupt, however large its debts become over time

The business from competition by rivals, guaranteeing it a protected share of the market

Employees from being made redundant if the business runs into financial difficulty

The total cost of running a business, adding together all its fixed and variable costs

The value of the next best alternative given up when a choice is made

The cost of borrowing money, measured by the interest charged on a business loan

The cost of advertising a product, including the spend on media and promotion

They are completely identical roles, and the two terms mean exactly the same thing in practice

Management sets the vision and inspires people, while leadership simply handles the routine paperwork

Leadership sets vision and direction; management organises and controls day-to-day work

Only managers are ever able to motivate staff, since leaders have no direct contact with workers

Democratic

Laissez-faire

Paternalistic only

Autocratic

They fail to move from doing everything to leading and delegating

Limited liability disappears as soon as the business grows beyond a certain size

Opportunity cost falls to zero once a business becomes large and well established

Business objectives can never change once they have been set at the very start