Eduqas GCSE Business topic area 1 Business activity overview quiz quiz

Land

Money

Labour

Enterprise

8

22

30

38

The business is legally allowed to borrow unlimited amounts of money from any bank or lender that it chooses to approach

The business has the right to earn unlimited profit each year without paying any tax on it

The owner is personally responsible for all the business's debts and could lose personal possessions

The owners can only ever lose the amount of money that they originally chose to invest in it

A sole trader

A partnership

A private limited company (Ltd)

A public limited company (plc)

Being independent and your own boss

Maximising the total profit earned

Increasing the firm's market share

Increasing total sales revenue made

They mean exactly the same thing and the two words can be used interchangeably in a plan

An objective is always a financial money target, whereas an aim is always non-financial instead

An aim is a long-term goal; an objective is a specific, measurable target that helps reach it

An aim is always short-term and an objective is always the long-term direction of the firm

12%

20%

6.7%

15%

Two businesses agreeing to combine into one new, larger business

One business buying a controlling share of another firm against its wishes

A single business deciding to open a brand new branch in a different town

A business choosing to close down and sell off all of its remaining assets

Because bulk buying of materials gets cheaper, lowering the average cost of every unit made

Because communication slows and morale can fall in a larger firm, pushing unit costs back up

Because a much bigger firm is able to pay far less tax on the profit that it earns each year

Because advertising costs are spread over more sales, reducing the cost per item sold

1.00

0.40

1.40

2.00

Being located very close to raw materials

Having quick and direct access to a port

The availability of cheap rural land

Footfall and proximity to customers

To predict the money flowing in and out each month so a shortfall can be spotted early

To work out exactly how much salary the owner should be allowed to take from the firm

To advertise the business and attract brand new customers to buy its products and services

To formally register the new business as a limited company with Companies House