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| Question | Answer |
| What is a sole trader? | A Sole Trader means that a single person owns the business |
| Advantages & Disadvantages of being a Sole Trader | Advantages: - You're your own boss - Pay yourself what you want - Don't get distracted by others views Disadvantages: - Making all decisions is pressure - Little / No support - Holidays are a problem |
| What is a partnership? | A Partnership is when between 2-20 people own the business |
| Advantages and Disadvantages of a partnership | Advantages - Owners share the work load - Less Stress as responsibility is shared - Shorter working hours Disadvantages - May be disagreements - Partners have to share profits - Poor communication can cause problems |
| How can the business meet it's objective of increasing sales revenue? | - Sell a wider variety of products - Advertising - Lower costs to attract customers - New Products - Jams, sauces and chutneys |
| Name 2/3 new objectives for the business other than to survive | - Grow the business: More products, wider variety Employ more people Increase outlets - Become more environmentally friendly: Not use harmful sprays Use recyclable materials - Work more with the local community: Sell to local schools & stores at good prices |
| What is a cashflow forecast? | A forecast of the income and outgoings of a business over a given period. |
| What sources of finance could the business use to purchase the new machinery? | Retained Profit: - money the business has already made + No interest - No Backup funds Bank Loan: + Quick way of getting money - Pay back more due to interest |
| Why do business objectives change? | Objectives change over time as they are reached. A small start up business may aim to survive in the first year. Once successful, the business then sets itself the objective of increasing profits or growing in size. |
| A business may wish to change the form of ownership from being a Sole Trader as the business expands. Suggest a suitable form of ownership. | Partnership - 2 to 20 people + Less Stress + Less Pressure + Responsibility Shared |
| Characteristics of a Private Limited Company | Shareholders with limited liability Shares are only for family and friends, not the general public |
| What are two types of Market Research | Primary - Field Research: All the information you want but can be costly. Secondary - Desk Research: Internet, blogs, magazines. Not always what you want but is cheaper. |
| Name and describe the 3 different methods of production | Job: Doing a job from start to finish Batch: Making something exactly the same way but in large batches - "lots of same product" Flow: "Conveyer Belt" Each person does a job along a production line. |
| Define USP | Unique Selling Point |
| What is quality control & Total quality management? | Quality Control: Checking the product at various stages of production. Total Quality Management: Encouraging all employees to consider the quality of their work. |
| What are quality circles? | Groups of workers discussing how to improve the quality of work or product. |
| Difference between full and part time staff? | Full time work full time hours whereas part time staff work when and as needed, mainly during busy seasons such as Christmas. |
| How can staff be motivated? | Money / Pay rise Job Enlargement Job Enrichment Better environment or working conditions Company Car Bonuses |
| What are the stages of the recuitment process? | 1. Identify the job vacancy 2. Draw up the job description 3. Draw up the person specification 4. Advertise the vacancy 5. Shortlist applicants 6. Prepare the interview 7. Select and appoint the new employee |
| PESTLE for the business | Political - Working hours + Where to setup + Pay Economic - Recession = bread and milk more important than chutneys Social - Times of the year it may be more popular at, Christmas. "Old people" Technical - Sell their product online + machinery Legal - Ingredients must be listed etc Environmental Influence - Bag Taxes, environmental taxes, pesticides. |
| What distribution techniques could be used? | - Over the internet - Cars/Vans/Roads to (Local Stores & schools) |
| How could the business become more environmentally friendly? | - Not use harmful sprays - Use recyclable material - No plastic bags |
| What are the current objectives of the business? | To Increase Sales Revenue |
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