OCR GCSE Business topic 1 Business activity overview quiz quiz

Anyone who is employed to work for an existing business

A customer who regularly buys products from a business

A person who takes a financial risk to set up and run a business

A bank that lends money to a business in return for some interest

3 pounds

11 pounds

14 pounds

8 pounds

They are personally responsible for all the business debts

They can only ever lose the money they originally invested

They do not have to pay any tax at all on the profits they make

They are not allowed to employ any staff in the business

Sole trader

Public limited company (plc)

Partnership

Private limited company (Ltd)

Increasing the firm's overall market share

Maximising the profit made each year

Achieving independence for the owner

Growing the total sales revenue each year

To do a bit better than the business did last year

To become a really successful business one day soon

To sell as many products as is humanly possible

To increase sales by 10 percent within 12 months

Employees

Shareholders

Customers wanting lower prices

The bank that lent the money

Taking over a rival company in the same market

Opening new branches funded by the firm's own profit

Merging with another business to form one new firm

Buying a majority of another firm's shares to control it

The rise in total costs that happens as a business grows

The extra tax that a large business is required to pay

The fall in average cost per unit as output rises

The wages that are paid out to the extra workers hired

It guarantees the business will succeed

It removes all risk from starting up

It means market research is no longer needed

It helps the owner raise finance from a bank

Reinvests it into its social or community aim

Pays it all out to the private owners as dividends

Returns the whole surplus to the government as tax

Splits it up equally among all of its customers

Two separate firms agree to combine into one new business

One business buys a controlling interest in another

A business grows by opening its own brand new shops

A business launches a brand-new product onto the market