1
1 Identify two ways a government might support business start-ups.
Way 1: ......................................................................................................................................................
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Way 2: ......................................................................................................................................................
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[Total: 2]
2 Identify two possible causes of business failure.
Cause 1: ...................................................................................................................................................
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Cause 2: ...................................................................................................................................................
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[Total: 2]
3 Identify two reasons why a business might offer training to its employees.
Reason 1: .................................................................................................................................................
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Reason 2: .................................................................................................................................................
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[Total: 2]
4 Define ‘globalisation’.
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[Total: 2]
2
5 Define ’unemployment’.
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[Total: 2]
6 Identify two ways a business could contribute to sustainable development.
Way 1: ......................................................................................................................................................
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Way 2: ......................................................................................................................................................
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[Total: 2]
7 Identify two examples of tertiary sector business activity in your country.
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[Total: 2]
3
8 Anouk is a sole trader. She designs and makes jewellery at home, using hired (rented) equipment. Anouk
enjoys selling the jewellery at local markets. Last year her sales revenue increased by $500 to $3000. She
plans to use $50 for a marketing budget. Anouk would like to do some primary market research when she
has time. Anouk thinks she should have a business partner.
Identify and explain two disadvantages to Anouk of having a business partner.
Disadvantage 1:........................................................................................................................................
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Explanation:.............................................................................................................................................
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Disadvantage 2:........................................................................................................................................
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Explanation:.............................................................................................................................................
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[Total: 6]
9 What is meant by ‘opportunity cost’?
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[Total: 2]
4
10 Javid is a company that manufactures a range of luxury chocolates using batch production. Over the past
year, profit has fallen due to increased competition. In order to cut costs, the Finance Director has suggested
the company introduces new technology into the production process.
Identify two advantages (other than cutting costs) to the company of using new technology.
Advantage 1: ............................................................................................................................................
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Advantage 2:.............................................................................................................................................
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[Total: 2]
11 Define 'limited company'.
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[Total: 2]
12 Identify two features of a sole trader.
Feature 1: .................................................................................................................................................
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Feature 2: .................................................................................................................................................
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[Total: 2]
13 Define ‘partnership’.
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[Total: 2]
5
14 (a) What is meant by ‘franchise’?
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[Total: 2]
15 What is meant by a ‘joint venture’?
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[Total: 2]
16 Table: Private sector business organisations in country R (millions)
Calculate the percentage (%) of businesses in country R which are partnerships.
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[Total: 2]
