gcse business studies workbook paper 1 name...advertising the post. create a list of advantages and...
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GCSE Business Studies Workbook
Paper 1
Name:
Business Ownership
Term Definition
Sole trader
Partnership
Private limited company
Public limited company
Unlimited liability
Limited liability
Continuity
Deed of partnership
Silent partner
Shareholder
Share
Dividend
Separation of
ownership and control
1. Sort the features for sole trader and partnership.
Advantages Disadvantages
Sole Trader
Partnership
Get to keep all of the profit Unlimited liability
Unlimited liability Have to share the profit between all partners
May be arguments Can make all of the decisions
Difficult to get start up finance Easier to get start up finance
More skills and ideas No support
2. Sort the features for a private limited company and a public limited company.
Advantages Disadvantages
Private
limited
company
Public limited
company
Profits are given to shareholders as dividends Limited liability
Limited liability Profits are given to shareholders as dividends
Accounts are public Can be taken over
Raise capital through selling shares Raise capital through selling shares
Takes time and money to become incorporated Can keep more control over who buys shares
Sole trader examples Partnerships examples
Private limited company examples Public limited company examples
3. Answer the knowledge questions
1. What is a sole trader?
2. How many partners can be in a partnership?
3. What does LTD stand for?
4. Who does an LTD sell shares to?
5. What does PLC stand for?
6. Who does a PLC sell shares to?
7. What does unlimited liability mean?
8. Who has unlimited liability?
9. What does limited liability mean?
10. Who has limited liability?
11. What are shareholders?
12. What are shareholders paid once or twice a year?
13. What is a deed of partnership and who signs it?
14. Which two ownerships are incorporated?
4. Answer the analysis questions.
Joe wants to set up his own barbers shop in the centre of Bristol. He has savings of £1000, which will
cover the first month’s rent and buy some equipment he needs. His friend Mark has expressed an
interest into going into business with Joe. He also has some savings he is willing to invest.
1. Analyse one advantage of Joe becoming a sole trader. 3 marks
2. Analyse one disadvantage of Joe becoming a partnership. 3 marks.
3. Recommend whether Joe should go as a sole trader or go into partnership with Mark. 3 marks
JFC is a chicken shop in the middle of Sheffield. James wants to expand and has an objective of opening
an additional 3 chicken shops in the next 3 years. He is currently a sole trader, however requires
investment to open the second shop in the next few months. He is considering becoming an LTD.
1. Analyse one advantage of James becoming an LTD. 3 marks.
Sectors
1. Sort the definitions of primary, secondary and tertiary sector and sort examples.
Primary
Secondary
Tertiary
2. What has happened to output and employment in each sector?
Primary Increase/decrease
Secondary Increase/decrease
Tertiary Increase/decrease
The manufacturing of goods
The extraction of raw materials
The selling of goods and services
Examples:
Farming, Tesco, JLR, Mining, Banks, Restaurants,
hairdressers, food factory
3. Sort the reasons for the trends into primary, secondary and tertiary.
Sector Reasons
Primary
Secondary
Tertiary
Increase in population. Increase in use of machinery. Increased use of machinery.
People are living longer. Increased imports.
Cheaper imports. Cheaper to produce abroad. People have more leisure time
and increased wealth.
Stakeholders
1. Fill in the blanks
Stakeholder Interest
Customers
Wages, holidays, working conditions
Suppliers
Can afford to pay loan/overdraft back, amount
of finance, amount of savings
Owners/shareholders
2. How can stakeholders have conflicting objectives
Conflicting Objectives
How would the interests of each stakeholder conflict:
1. Customers and owners
2. Owners and employees
Business Decision Likely to be
Supported By
Possibly
Opposed By?
Cut jobs to reduce costs
Add extra shifts to
increase factory capacity
Introduce new machinery to
replace manual work
Increase selling prices
significantly to improve
profit margins
Tesco are buying one of their major suppliers of food and drink. Analyse how 2 stakeholders
will be effected. Remember U/APP/AN
Stakeholder 1:
Effect:
Stakeholder 2:
Effect:
Enterprise and Entrepreneurs
1. Who are all of these entrepreneurs?
2. What characteristics do these entrepreneurs have?
3. Put the characteristics in order of importance
4. What are the risks and rewards of setting up your own business?
Risk Reward
5. What entrepreneurial skills do you have? When have you shown these skills? (think about
school, football teams, charity events)
Recruitment
1. Complete the glossary.
Key word Definition
Is the process of choosing between applicants for a job.
Lists the main duties, tasks and responsibilities of a worker.
Lists the qualities, qualifications and knowledge that a person should have
to do a particular job.
Is when a job vacancy is filled by employing someone who is already an
employee of the business.
Is when a job vacancy is filled by employing someone from outside the
business. Is the department in a business that deals with the recruitment and
selection of workers, with pay and other employment matters.
Is when the business recruits skilled workers because it is short of them.
Includes notice boards, word of mouth, company website and emails to
staff. Includes websites, newspapers, social media and specialist magazines.
Is a document on which the applicant outlines their personal details,
experience and skills.
Is a form which asks applicants for personal details, experience and skills.
Is a letter written by the applicant usually explaining why they think they
are suitable for the job.
Are sessions in which the people making the appointment ask questions of
the applicant.
Are activities designed to test how well an applicant works with others.
Are statements from a previous or current employer about the suitability
of the applicant for the job.
Short listing, References, Internal recruitment, Job description, External recruitment, Human
resources, Personal specification, Group activities, Letter of application/Personal statement,
Application form, CV, Interviews
2. Put the stages of the recruitment process in order.
Short listing, Needs analysis, Final Stage, Advertising
1.
2.
3.
4.
3. Advertising the post. Create a list of advantages and disadvantages.
Type Advantages Disadvantages
Local newspaper
National
newspaper
Shop window
Job centre
Recruitment
agency
Internet/website
4. Sort internal and external recruitment statements.
Definition Advantages Disadvantages
Internal
External
A worker is given a promotion within the
business
A worker is recruited from outside of the
business
+cheaper -conflict
+less training +more experience
+range of skills -may not fit in with workforce
+quicker +new ideas
-Lack of skills/ideas -expensive
-less applicants -induction training
+motivated +more applicants
Person
specification
Job
description
Good communication skills
Excellent team working skills
Relevant degree
Experience in working with Microsoft Excel
To hold a current driving license
To ensure that the accounts are up to date.
To establish good working relationships with the
partners
Motivation and Retention
1. Match up the definitions
Method Definition
The worker is given a lump sum of money for reaching a target
A percentage of the businesses profit is paid out to workers
A worker is paid a yearly amount, split over 12 months
A worker is given additional benefits such as a company car, gym
membership
A worker is paid a set amount per hour they work
2. Match up the definitions
Definition
Job enrichment
Job enlargement
Job rotation
Workers move around and do different jobs
Workers are given more tasks to do
Workers are given more responsibility
Bonus
Salary
Wage
Fringe benefit
Profit sharing
3. Sort the types of motivation out into financial and non-financial.
Financial Non financial
4. Advantages and disadvantages of different types of motivation
Advantages Disadvantages
Job enrichment
Job enlargement
Job rotation
Praise
Award scheme
1. Advantages and disadvantages of different types of motivation
Advantages Disadvantages
Bonus
Profit sharing
Wage
Salary
Fringe benefits
Key Term Definition
Motivation
Retention
Financial/Monetary
Non-financial/ Non-
monetary
Praise
Award schemes
Working environment
Job enrichment
Job enlargement
Job rotation
Wage
Salary
Overtime pay
Profit sharing
Bonus
Fringe benefit
Turnover of labour
Organisational Structures
1. Sort out the definition
This is the number of subordinates you
are in control of
This person is responsible for
subordinates and delegates work to
them
This can travel vertical and horizontal
throughout the organisation
The links in authority throughout the
organisation where there is more
power at the top of the hierarchy than
at the bottom
A line manager is in control of these
people
This is where a line manager will give
subordinates tasks
This is how many layers there are in a
structure
2. Draw out a flat structure
3. Draw out a tall structure
Line manager Chain of Command Span of control Subordinate
Delegate Line of communication Hierarchy
4. Sort out the characteristics of a tall and flat structure.
Tall Flat
Wide span of control Long chain of command Subordinates are not
managed
No opportunities for
promotion
Subordinates are
micromanaged
Opportunities for
promotion
Good relationships
with subordinates
Lots of delegation
Expensive Less bureaucracy Cheaper Slow communication
Narrow span of control Short chain of
command
Specialised
departments
Quick communication
Term Definition
Flat structure
Tall structure
Span of control
Wide span of control
Narrow span of control
Chain of command
Long chain of command
Short chain of command
Delegation
Delayering
Subordinate
Line manager
Line of communication
Hierarchy
1. Define span of control
2. Define wide span of control
3. Define narrow span of control
4. Define delegation
5. Which span of control will have more delegation?
6. Define chain of command
7. Define long chain of command
8. Define short chain of command
9. What chain of command does a tall structure have?
10. What chain of command does a flat structure have?
11. What span of control does a tall structure have?
12. What span of control does a tall structure have?
13. Can a tall or flat structure be delayered?
Marketing-Price
1. Match up the pricing strategies
Pricing strategy Definition
When a business is new to a crowded market, they price
their products below that of competitors.
The costs of manufacturing plus what profit is wanted
created the selling price.
A reduction in the price to attract customers, boost sales
or get rid of old stock.
When a business has something new and unique it can set a
high price until competition come into the market.
When there is a lot of competition, a business will look at
what other competitors charge and charge the same.
Cost plus Penetration Competitive
Skimming Promotional
2. Fill in the benefits and drawbacks of each pricing strategy.
Benefit Drawback
Cost-plus (or
“mark-up”)
pricing
Penetration
pricing
Price skimming
Promotional
pricing
Competitor
3. Cost plus calculations
4. Time for YOU to Think!
If there is a lot of competition who are well established and you come into the market and set
your price lower than them…
a. What pricing strategy is this?
b. If competitors lower their price also, what might you do?
c. If you use this strategy for a long time, will you make much profit?
5. Time for YOU to Think!
If you offer a deal or promotion on your product or service…
a. What pricing strategy is this?
b. Why might you have used this strategy?
c. If using this strategy doesn’t get rid of old stock or boost sales, was it worthwhile?
d. Do you think it should be used for a long time?
6. Time for YOU to Think!
If you bring out a new product or service and there isn’t much competition…
a. What pricing strategy is this?
b. Why can you use this strategy?
c. Do you think you will get a lot of profit using this strategy?
d. If competitors start to offer the same product or service, what will you have to do to your
price?
Product Life Cycle
1. Draw the product life cycle
2.
Time
Sales
Introduction
Growth
Maturity
Decline
Promotion
1. Create a list of ways you can promote a product or service and the advantages and
disadvantages of this type.
Way Advantages Disadvantages
Place
1. Where can consumers buy products from?
2. What do you think has happened to the way that consumers buy products?
3. How often do you buy products off the internet?
4. What has happened to the use of internet when selling products?
5. What are the advantages and disadvantages of ecommerce (selling on the internet)?
Advantages Disadvantages
Product
1. Think of 4 ideas for a new product. It can be completely new and unique or an adaptation of a
product already out in the market.
Idea Explain it/draw it
1.
2.
3.
4.
2. Choose one of your ideas. Design the packaging/what it will look like
3. Who will your product be aimed at?
4. What pricing strategy will you use and why?
5. How will you advertise the product? Why?