CCEA Business Studies AS Unit 1 Questions and
Answers 100% correct | A+ Rated
Business Enterprise
Any operation established to produce or supply goods/services desired by consumers generally
with a view to making profit.
Factors of Production
The inputs of land, labour, capital and enterprise required to produce or supply goods/services.
Entrepreneur
Someone who starts and runs a business and has the responsibility of the risks involved.
Entrepreneurial Characteristics
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
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
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
, 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
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
A binding legal document which states the formal rights of partners in the business.
Sleeping Partner
A partner who contributes capital and shares in profits/losses but does not participate in
decision making.
Limited Partnership
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
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
Investors who have bought a share in the company.
Limited Liability
Each shareholder is only liable for the original amount of money invested in the business.
Franchise
Answers 100% correct | A+ Rated
Business Enterprise
Any operation established to produce or supply goods/services desired by consumers generally
with a view to making profit.
Factors of Production
The inputs of land, labour, capital and enterprise required to produce or supply goods/services.
Entrepreneur
Someone who starts and runs a business and has the responsibility of the risks involved.
Entrepreneurial Characteristics
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
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
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
, 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
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
A binding legal document which states the formal rights of partners in the business.
Sleeping Partner
A partner who contributes capital and shares in profits/losses but does not participate in
decision making.
Limited Partnership
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
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
Investors who have bought a share in the company.
Limited Liability
Each shareholder is only liable for the original amount of money invested in the business.
Franchise
