CCEA GCSE Business Studies Creating a Business quiz

A person who takes the risk of starting a business

An employee who is paid a wage

A government department

A customer of a business

Profit

Tax

Capital

Marketing

The business can borrow without limit

The owner is personally responsible for all business debts

The business pays no tax

Shareholders lose only what they invested

Public limited company

Partnership

Private limited company

Sole trader

The owners gain limited liability

It pays no tax

It needs no paperwork

It keeps all accounts secret

A sole trader bakery

The NHS

A public limited company

A private limited company

To maximise profit for owners

To avoid paying any tax

To achieve a social or environmental purpose

To be owned by the government

They mean exactly the same thing

An aim is short term and an objective is long term

An aim is set by the government and an objective by the owner

An aim is a broad long-term goal and an objective is a specific measurable target

New businesses face high costs and few customers, so they can easily fail

New businesses make large profits immediately

The government requires it

New businesses have no competition

Marketing

Measurable

Maximum

Market share

Only the owners

Only the customers

Any group with an interest in the business

Only the shareholders

High dividends

Fair pay and job security

Low prices

Prompt payment of invoices

Customers and suppliers both wanting the business to close

Owners and the government both wanting higher taxes

Employees and customers both wanting lower wages

Owners wanting low wages while employees want higher pay

Through taxation

By selling shares

By charging high prices

Through bank loans only

They must publish their accounts

They have unlimited liability

They cannot make a profit

They are owned by the government