BUSINESS PAPER 2 REVISION
QUESTIONS WITH CORRECT ANSWERS
Name some stakeholders - correct answer-Employees,Manager,Supplier,Government and customers
What is limited liability? - correct answer-
Shareholders are responsible for the losses and debts of the business
What is unlimited liability? - correct answer-
The owner is personally and fully responsible for all losses and debts of the business
What is a sole trader? - correct answer-
a person who is the exclusive owner of a business, entitled to keep all profits after tax has been paid b
ut liable for all losses
What are the factors affecting the location of a business? - correct answer-
Access to raw materials, Access to the target market, Room for expansion, Government policy and acc
ess to auxiliary
What is a variable cost? - correct answer-a cost that varies with the level of output.
What is economies of scale? - correct answer-
a proportionate saving in costs gained by an increased level of production.
What is diseconomies of scale? - correct answer-
Diseconomies of scale happen when a company or business grows so large that the costs per unit incr
ease
How do you calculate average cost? - correct answer-total cost/quantity
What is the purpose of setting aims and objectives? - correct answer-
They provide a purpose for the business and also a direction
QUESTIONS WITH CORRECT ANSWERS
Name some stakeholders - correct answer-Employees,Manager,Supplier,Government and customers
What is limited liability? - correct answer-
Shareholders are responsible for the losses and debts of the business
What is unlimited liability? - correct answer-
The owner is personally and fully responsible for all losses and debts of the business
What is a sole trader? - correct answer-
a person who is the exclusive owner of a business, entitled to keep all profits after tax has been paid b
ut liable for all losses
What are the factors affecting the location of a business? - correct answer-
Access to raw materials, Access to the target market, Room for expansion, Government policy and acc
ess to auxiliary
What is a variable cost? - correct answer-a cost that varies with the level of output.
What is economies of scale? - correct answer-
a proportionate saving in costs gained by an increased level of production.
What is diseconomies of scale? - correct answer-
Diseconomies of scale happen when a company or business grows so large that the costs per unit incr
ease
How do you calculate average cost? - correct answer-total cost/quantity
What is the purpose of setting aims and objectives? - correct answer-
They provide a purpose for the business and also a direction
