CCEA Business Studies AS Unit 1
Exam | Questions And Answers |
Latest Exam 2026-2027 | Graded A+
Business Enterprise -ANSWER Any operation established to produce or supply
goods/services desired by consumers generally with a view to making profit.
Factors of Production -ANSWER The inputs of land, labour, capital and enterprise
required to produce or supply goods/services.
Entrepreneur -ANSWER Someone who starts and runs a business and has the
responsibility of the risks involved.
Entrepreneurial Characteristics -ANSWER These are common traits found in successful
entrepreneurs and examples may include innovative, visionary, flexibility,
knowledgeable, risk taker, decisiveness, goal orientated, motivated and committed.
Adding Value -ANSWER A business will add value to raw materials used in its production
process so that there will be a significant difference between the cost of purchasing raw
materials and the selling prices of the finished article.
Competitive Advantage -ANSWER A favourable situation that a business organisation
has over its rivals arising from a marketing opportunity such as price or cost or both. It
strengths and positions a business better within the business environment.
Sole Trader -ANSWER A business organisation which has a single owner and in which
there is no legal distinction between the owner and the business. The owner receives all
the profits and has unlimited responsibility for all losses and debts.
Partnership -ANSWER A business relationship of two or more entities conducting
business for mutual benefit. They manage the business and share equal responsibility
for the company's profits and losses, and its debts and liabilities.
Deed of Partnership -ANSWER A binding legal document which states the formal rights
of partners in the business.
Sleeping Partner -ANSWER A partner who contributes capital and shares in profits/losses
but does not participate in decision making.
Limited Partnership -ANSWER A partnership which has at least one ordinary partner who
has unlimited liability. A limited partner contributes capital, share in profits but has
limited liability. A limited partner cannot participate in decision making.
, Limited Company -ANSWER A business organisation which has separate legal entity
from those of its owners. The liability of the members of the company is limited to what
they have invested to the company.
Shareholders -ANSWER Investors who have bought a share in the company.
Limited Liability -ANSWER Each shareholder is only liable for the original amount of
money invested in the business.
Franchise -ANSWER An agreement between two parties, which gives one party the rights
to market a product or service using the trademark of another business.
Social Enterprise -ANSWER A business venture established to address a social issue
within a community or to improve the quality or life for citizens or the environment. All
profit made is reinvested to help achieve the social objective of the business.
Stakeholder Groups -ANSWER Specific groups of people who have a genuine interest in
the activities of a particular business and who will be affected by the activities of the
business. Examples include owners, employees, customers, lenders, government,
suppliers, management and community.
Consumer Goods and Services Market -ANSWER This is where households purchase
the goods/services they desire and businesses try to meet their demand by selling the
goods/services in store, online etc.
Capital Goods Market -ANSWER This in an industrial market selling tangible goods
required by businesses who supply the consumer goods market. Items include
machinery, equipment, vehicles and tools.
Labour Market -ANSWER This is where those seeking work can interact with employers
who are competing to hire them.
Demand -ANSWER The desire to own anything, the ability to pay for it, and the
willingness to pay.
Supply -ANSWER The quantity of products which suppliers make available to the market
at any given price.
Equilibrium Price -ANSWER The price at which the quantity demanded by consumers is
equal to the quantity supplied.
Mass Market -ANSWER A broad, non-targeted, non-segmented market.
Niche Market -ANSWER A business aims their product at a narrow or focused subset of a
larger market sector.
Exam | Questions And Answers |
Latest Exam 2026-2027 | Graded A+
Business Enterprise -ANSWER Any operation established to produce or supply
goods/services desired by consumers generally with a view to making profit.
Factors of Production -ANSWER The inputs of land, labour, capital and enterprise
required to produce or supply goods/services.
Entrepreneur -ANSWER Someone who starts and runs a business and has the
responsibility of the risks involved.
Entrepreneurial Characteristics -ANSWER These are common traits found in successful
entrepreneurs and examples may include innovative, visionary, flexibility,
knowledgeable, risk taker, decisiveness, goal orientated, motivated and committed.
Adding Value -ANSWER A business will add value to raw materials used in its production
process so that there will be a significant difference between the cost of purchasing raw
materials and the selling prices of the finished article.
Competitive Advantage -ANSWER A favourable situation that a business organisation
has over its rivals arising from a marketing opportunity such as price or cost or both. It
strengths and positions a business better within the business environment.
Sole Trader -ANSWER A business organisation which has a single owner and in which
there is no legal distinction between the owner and the business. The owner receives all
the profits and has unlimited responsibility for all losses and debts.
Partnership -ANSWER A business relationship of two or more entities conducting
business for mutual benefit. They manage the business and share equal responsibility
for the company's profits and losses, and its debts and liabilities.
Deed of Partnership -ANSWER A binding legal document which states the formal rights
of partners in the business.
Sleeping Partner -ANSWER A partner who contributes capital and shares in profits/losses
but does not participate in decision making.
Limited Partnership -ANSWER A partnership which has at least one ordinary partner who
has unlimited liability. A limited partner contributes capital, share in profits but has
limited liability. A limited partner cannot participate in decision making.
, Limited Company -ANSWER A business organisation which has separate legal entity
from those of its owners. The liability of the members of the company is limited to what
they have invested to the company.
Shareholders -ANSWER Investors who have bought a share in the company.
Limited Liability -ANSWER Each shareholder is only liable for the original amount of
money invested in the business.
Franchise -ANSWER An agreement between two parties, which gives one party the rights
to market a product or service using the trademark of another business.
Social Enterprise -ANSWER A business venture established to address a social issue
within a community or to improve the quality or life for citizens or the environment. All
profit made is reinvested to help achieve the social objective of the business.
Stakeholder Groups -ANSWER Specific groups of people who have a genuine interest in
the activities of a particular business and who will be affected by the activities of the
business. Examples include owners, employees, customers, lenders, government,
suppliers, management and community.
Consumer Goods and Services Market -ANSWER This is where households purchase
the goods/services they desire and businesses try to meet their demand by selling the
goods/services in store, online etc.
Capital Goods Market -ANSWER This in an industrial market selling tangible goods
required by businesses who supply the consumer goods market. Items include
machinery, equipment, vehicles and tools.
Labour Market -ANSWER This is where those seeking work can interact with employers
who are competing to hire them.
Demand -ANSWER The desire to own anything, the ability to pay for it, and the
willingness to pay.
Supply -ANSWER The quantity of products which suppliers make available to the market
at any given price.
Equilibrium Price -ANSWER The price at which the quantity demanded by consumers is
equal to the quantity supplied.
Mass Market -ANSWER A broad, non-targeted, non-segmented market.
Niche Market -ANSWER A business aims their product at a narrow or focused subset of a
larger market sector.
