Unit 1 Multiple Choice Year 11 Mocks Observations

Unit 1 Multiple Choice Year 11 Mocks

Observations • Don’t tick the boxes • Read the question…. if it asks for 3, give 3 • You can change your mind, but you can’t change it back • Take your time. .

Question 1 • Sources of finance • What is suitable for a type of business? • A SOLE TRADER

Question 2 • Limited and Unlimited liability Only LIMITED companies have LIMITED liability

Question 4 • Primary & Secondary research • Read the question properly

Question 7 • Exchange Rates • Need to revise the effects of changes in an exchange rate • If the value of the £ goes up against the $… – £ is worth more – Costs to the business will go down • If the value of the £ falls against the $… – £ is worth less – Costs to the business will go up

Question 9 • Added Value • How can a business add value to a product or service? (ie. Make it better and charge more for it!)

Question 10 • Stakeholders • NOT the same as shareholders • Anyone with an INTEREST in the business

Question 14 • Factors affecting costs to the business • Know what an increase in cost of a commodity or raw material will have

Q 15 • Employee Protection • Learn your protection acts – Race – Age – Disability – Gender – Pay – Contracts of employment

Question 16 • Being competitive • How? • How can it be better than the competitiors?

Question 17 Taxes Who pays what? Employee – income tax and national employment Sole Trader & Partnership – Income tax and national insurance, (VAT, if sales are over £ 67, 000) • Limited companies – National Insurance, Corporation tax and VAT • Sole trader pays tax on income • Limited companies pay tax on profits • •

Question 20 • Key terms • What is a commodity? • The difference between a person specification & job description