OCR GCSE Business Paper 1 Exam With 100% Correct Questions And Answers

OCR GCSE Business Paper 1 Exam With 100% Correct Questions And Answers

Business plan - Is a simple plan which sets out details on the product or service being sold, where the 
finance is to come from to start the business, how the product is to be marketed and the market 
research carried out.
Finance - Finance is needed to start a business - maybe a loan or grant.
Success - For a business can take many forms, including making a profit, surviving and providing a good 
service.
Resources - Are the things a business needs to make it work, including land, labour, capital and 
enterprise.
Limited liability - Is where the responsibility for the debts of a business is limited to the amount invested 
by a shareholder. They will not be made to sell personal belongings to pay off business debt. A feature of 
private and public limited companies.
Unlimited liability - Is where the responsibility for all the debts of a business rests with the owners of the 
business. A feature of sole traders and partnerships who may need to sell their own personal belongings 
to pay off business debt.
Entrepreneur - Is a person who takes the risk of starting and running a business enterprise.
Spotting an opportunity - Is the ability to see the need for a particular product or service that customers 
need.
Enterprising characteristics - Are the features of an entrepreneur, which include being determined, 
creative and having ability to take risks.
Sole trader - Is a business owned by one person. They have sole responsibility but benefit if the business 
is a success.
Partnership - Is a business owned by between two and 20 partners.
Private limited company - Is often (but not always) a smaller business. Owned by at least two 
shareholders. Shares cannot be sold to the general public. Has Ltd after its name.
Public limited company - Is a large business, where shares can be sold to the general public enabling vast 
sums of money to be raised to develop the company. Has plc after its name.
Deed of partnership - Is a document setting out the operations of the partnership, including amount of 
capital to be invested and how profits will be shared.
Capital - Is money raised to start or develop a business.
Sleeping partner - Is a partner who invests in a partnership but has no part in the running of the 
business.
Limited liability partnership - Are part partnership part limited company. Owners are members, not 
partners. They have limited liability and have to make their finances available to the public.
Shareholders - Are the owners of a private or public limited company.
Dividend - Is the money paid to shareholders from the profits of a limited company.This is the reward for 
the shareholder taking a risk by investing money in the company.
Market share - Is the share of the total market for a product or service and is shown as a percentage.
Business aims and objectives - Are what the business aims to achieve and include survival, profit, growth 
and providing a services.
Profit - Is the difference between revenue and costs.
Survival - Is when a business just manages to keep going.
Growth - Is where a business becomes larger, for example by making more products or opening more 
places where goods and services are sold.
Providing a service - Is where a business makes sure that the needs of the customer are being met.
Stakeholder - Are groups or individuals who have an interest in a business