GCSE Business Revision Worksheets Unit 1 Revision Pages

GCSE Business Revision Worksheets

Unit 1 Revision Pages 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. Enterprise Skills Types of Ownership: Sole Trader Types of Ownership: Private Limited Companies Types of Ownership: Public Limited Companies Types of Ownership: Franchise Market Mapping Primary Market Research: Focus Groups Deliberate Creativity (Lateral Thinking) Break Even, Costs, Revenue and Profit Cashflow (also in Unit 3) Added Value: Branding Added Value: Customer Service Calculated Risks Market Segmentation Marketing Mix (also in Unit 3) Location Factors Business Objectives Invention and Innovation Market Demand Supply Recruitment Interest Rates Exchange Rates The Business Cycle Stakeholders (also in Unit 3)

Enterprise and Entrepreneurs Keywords Entrepreneur Enterprise Risk Reward Skills that entrepreneurs have Why are they important? Rewards of being an entrepreneur Reasons why someone would choose to become an entrepreneur 1. 3. 2. 4.

Types of Ownership: Sole Trader Definition: Ownership: Liability: Taxes Paid: Advantages and disadvantages of owning a business as a sole trader Advantages Disadvantages • • • What is the meaning of the term ‘unlimited liability’?

Types of Ownership: Private Limited Company Definition: Ownership: Liability: Taxes Paid: Advantages and disadvantages of owning a business as a sole trader Advantages Disadvantages • • • What is the meaning of the term ‘unlimited liability’?

Types of Ownership: Public Limited Company Definition: Ownership: Liability: Taxes Paid: Advantages and disadvantages of owning a business as a sole trader Advantages Disadvantages • • • What is the meaning of the term ‘unlimited liability’?

Types of Ownership: Franchise Definition: Key Terms Franchisee Franchisor Royalty Franchise Fee Page 1

Types of Ownership: Franchise Advantages and disadvantages of owning a business as a Franchisee Advantages Disadvantages Advantages and disadvantages of owning a business as a Franchisor Advantages Disadvantages Page 2

Market Mapping Definition: What is market research? How does it help create a market map? Scales that might be used: 1. 2. 3. 4. Why might a business choose to create a market map? Advantages and disadvantages of Market Mapping Advantages Disadvantages

Primary Market Research: Focus Groups Definition: Qualitative or Quantitative research? Why? Advantages and disadvantages of focus groups Advantages Why might a business choose to carry out a focus group? Disadvantages

Deliberate Creativity (Lateral Thinking) Definition: How does deliberate creativity benefit businesses? Why would a business use deliberate creativity? How does 6 hats help?

Break Even, Revenue, Costs and Profit Key Terms Definition Break Even Point Fixed Costs Variable Costs Contribution Selling Price Margin of Safety Total Costs Key Formula Break Even Point Contribution Revenue Profit Why would a business use break even? Page 1

Break Even, Revenue, Costs and Profit What would the impact on the break even point be if the following changes happened? Selling price increased Selling price decreased Fixed/variable costs increased Fixed/variable costs decreased Draw a break even chart and label it: sales revenue, total costs, fixed costs, profit (margin of safety), loss, costs/revenue, quantity sold. Page 2

Cash Flow Key Term Definition Cash flow forecast Sales Revenue Receipts Net Cash Flow Opening Bank Balance Closing Bank Balance Why are cash flow forecasts important? How can a business improve their cash flow? Method Explanation Page 1

Cash Flow Term Formula Opening Bank Balance Net Cash Flow Closing Bank Balance Why do businesses fail? Jan Feb Mar Sales £ 5500 £ 4000 Fixed Costs £ 2000 Stock £ 3000 Total Receipts £ 5000 Net Cash Flow Opening Balance Closing balance £ 1800 Apr £ 2000 £ 1000 £ 2000 £ 3000 £ 700 £ 250 (£ 200) £ 1450 Complete the cash flow forecast. £ 2450 Page 2

Added Value Method Definition: Description/Example USP Branding Convenience Speedy Service Customer Service Design Give reasons and explain why is it important for a business to add value? 1. 2. 3.

Added Value: Branding Definition: What does branding do for business? What is meant by the term ‘Global Brand’? What are the benefits of branding for business? Drawback What is meant by the term ‘Differentiation’? Impact on business

Added Value: Customer Service Definition: What are the benefits of good customer service for business? Benefits Impact on business What are the drawbacks of poor customer service for business? Drawback Impact on business

Calculated Risks Definition: Give 2 examples of calculated risks that an entrepreneur might take. What risks do entrepreneurs take? What are the benefits of calculating the risk involved in a decision Why is it a risk for a business?

MARKET SEGMENTATION Definition: Why might a business choose to segment the market? How might a business segment their market?

Marketing Mix Definition: Why is it important to manage the marketing mix effectively? Definition: Price Skimming: Definition: Product Key factors: Penetration pricing: Price takers: Definition: Place Distribution Channels: Factors to consider for choice of location: Definition: Methods: Promotion Why might some products fail? Price makers:

Location Factors Key factors affecting location Factor Reason

Business Objectives Key Terms Definition Objective Aim Mission Social mission Objectives that businesses may have Type of business/how well established? Why?

Invention and Innovation Key Term Definition Invention Innovation Risk Patent Copyright Trademark Why might a successful patent be likely to lead to high profits for the inventor of a product? Reason Explanation

Supply and Demand Key Term Definition Supply Demand Equilibrium Explain what this supply and demand curve is showing. How might firms use the information shown in a supply and demand curve? Explain what would happen if… …demand was higher than supply? …Supply was higher than demand?

Recruitment Key term Definition Recruitment CV (Curriculum Vitae) Interview Shortlist reference Person Specification Job Description Why is it important for a business to recruit the right staff? Reason What is discrimination? Explanation Examples of discrimination

Explain the impact of the following on businesses: a) When the business has borrowed a lot of money. b) When the interest rate rises sharply. Impact of a high interest rate on businesses and families Key Term Interest Rate Bank of England Chancellor of the Exchequer Impact of a low interest rate on businesses and families Definition

Definition Exchange Rate Impact of an increase in the value of the £ Impact of a decrease in the value of the £ Why is a strong £ important for businesses? What is meant by the term ‘weak £’? Why might a weak £ be a problem for… a) Businesses? b) Shoppers? Exchange rate calculations How do you convert £’s into a foreign currency? How do you convert a foreign currency into £’s?

Page 1 Add the following labels to the business cycle: 1. Boom 2. Growth 3. Recession 4. Recovery 5. Slump Key Term Definition Liquidation Recession Economic downturn Boom Explain the impact of an economic downturn on the following: Consumer Spending Interest rates Unemployment Borrowing Types of products that are more successful?

Page 2 Explain the impact of economic growth on the following: Consumer Spending Interest rates Unemployment Borrowing Types of products that are more successful? How might consumers behave if they are confident about their future? Why might a discount retailer such as Lidl cope better with a recession than a luxury goods retailer such as Marks and Spencer? How does the Bank of England try to control the economy?

Stakeholders Key term Definition: Definition Primary Stakeholder Secondary Stakeholder Key stakeholder Internal or External Stake in business Why might employees be regarded as primary stakeholders? Page 1

Stakeholders Outline how stakeholder interests in a business may conflict with each other. Stakeholder A Stakeholder B Explain the conflict What is the difference between a stakeholder and a shareholder? Why might shareholders in a public limited company be treated like they are the most important stakeholder in the business? Explain two disadvantages for staff who work for a business which only focusses on the needs of shareholders rather than stakeholders. 1. 2. Page 2