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WalesBusinessQuick questions
Business Opportunities (AS Unit 1)
Quick questions on Business location and finance - WJEC A-Level Business
5short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What is factors influencing location?Show answer
The main factors WJEC expects are:
What is sources of finance?Show answer
For a brand-new start-up there is no retained profit yet, so the owner's savings are usually the first source, often topped up by external finance.
What is matching the source to the need?Show answer
The right source depends on the amount needed, the purpose (long-term asset or short-term cash gap), the cost (interest), and the owner's willingness to give up control. Grants are attractive because they need not be repaid; loans suit larger long-term needs; overdrafts and trade credit cover short-term gaps; selling shares funds large growth but dilutes control.
What is q1?Show answer
State two factors that influence where a business locates. [2 marks]
What is q2?Show answer
Explain one advantage of using a grant rather than a bank loan to finance a start-up. [3 marks]
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