Cambridge International AS & A Level Business Coursebook Quiz

Questions and Answers

What is the primary purpose of business activity?

To meet the needs of customers by providing a product or service.

What is an important factor that influences the success of an entrepreneur?

Their ability to identify gaps in the market.

What key characteristic of successful entrepreneurs is mentioned?

Ambition and business knowledge.

What does adding value mean in the context of business activity?

Enhancing the benefits of a product or service to customers Signup and view all the answers

Change within a business is a static process.

False Signup and view all the answers

Who provided a loan to Mohammed Qamber Hussain to help finance his first restaurant?

His father. Signup and view all the answers

Business activity does not require any resources.

False Signup and view all the answers

What was the innovative concept of Mohammed's restaurants, Chottu Chai Wala?

A clean and comfortable environment serving traditional street food. Signup and view all the answers

What are the four factors of production needed by businesses?

Land, Labour, Capital, Enterprise Signup and view all the answers

All businesses need only financial capital to operate.

False Signup and view all the answers

What is added value in a business context?

The difference between the selling price of a product and the cost of materials used to produce it. Signup and view all the answers

The economic problem refers to the shortage of _______ to satisfy all human wants.

goods Signup and view all the answers

Name a barrier that entrepreneurs must overcome to turn their business ideas into reality.

Lack of a business opportunity. Signup and view all the answers

What are the key risks faced by entrepreneurs when starting a new business?

Market competition, cash flow issues, and poor management skills. Signup and view all the answers

Which of the following reasons is commonly cited for business failure?

Insufficient personal savings Signup and view all the answers

Match the following terms to their definitions:

Entrepreneur = A person who starts and manages a business. Intrapreneur = An employee who acts like an entrepreneur within a company. Opportunity Cost = The next best alternative that is foregone when making a choice. Economic Growth = An increase in the output of goods and services in an economy. Signup and view all the answers

What is the role of intrapreneurs in a business?

To develop innovative products or projects within an existing business. Signup and view all the answers

What is one major benefit of successful entrepreneurship to the economy?

Employment creation. Signup and view all the answers

Which of the following is an advantage of a private limited company?

Shareholders have limited liability. Signup and view all the answers

In a public limited company, shareholders have unlimited liability.

False Signup and view all the answers

What does 'plc' stand for?

public limited company Signup and view all the answers

The original owner of a private limited company often retains ______ interest in the company.

controlling Signup and view all the answers

What is a disadvantage of a public limited company?

Shares are subject to price fluctuations. Signup and view all the answers

What is one reason why a private limited company might convert to a plc?

To access larger capital sources. Signup and view all the answers

Which of the following correctly describes the formation of a public limited company?

Involves high costs for business consultants. Signup and view all the answers

Public limited companies must publish ______ and accounts annually.

reports Signup and view all the answers

Define the term 'adding value'.

Adding value refers to the process of increasing the worth of a product or service by enhancing its features or benefits. Signup and view all the answers

Define the term 'entrepreneur'.

An entrepreneur is an individual who organizes, manages, and assumes the risks of a business venture. Signup and view all the answers

Analyse one characteristic of successful entrepreneurs.

Successful entrepreneurs often possess strong leadership skills, enabling them to inspire and manage their teams effectively. Signup and view all the answers

Explain one barrier faced by entrepreneurs, apart from limited finance.

One barrier faced by entrepreneurs is increased competition, which can make it difficult to establish and grow a new business. Signup and view all the answers

Explain one example of opportunity cost for an individual planning to become an entrepreneur.

An individual may forgo a steady salary from a job when deciding to start their own business, which represents an opportunity cost. Signup and view all the answers

Analyse one way a country is likely to benefit from the expansion of its business enterprises.

Countries benefit from business expansion through job creation, which contributes to lower unemployment rates. Signup and view all the answers

Explain one role of an intrapreneur in an existing business.

An intrapreneur is responsible for innovating and developing new products or services within a company while working under its umbrella. Signup and view all the answers

Analyse one benefit of a detailed business plan to an entrepreneur.

A detailed business plan provides a clear roadmap for the entrepreneur, guiding decision-making and strategy. Signup and view all the answers

Explain one limitation of business plans.

One limitation of business plans is that they can create a false sense of security, leading owners to rely too much on projections. Signup and view all the answers

Explain one reason why a new hairdressing business will need a factor of production of your choice.

A new hairdressing business will need skilled labor to provide quality services to clients. Signup and view all the answers

Explain one need that a new business must fulfil if it is to be successful.

A new business must fulfill a market need by offering products or services that solve a problem or meet consumer demands. Signup and view all the answers

Analyse one way a supermarket could add value to the food and other goods it buys in.

A supermarket could add value by creating an attractive shopping environment and offering personalized customer service. Signup and view all the answers

Explain one reason why there are so many new business enterprises providing consumer services.

The rise in disposable income and changing consumer preferences have led to an increased demand for personalized services. Signup and view all the answers

Explain one way in which an entrepreneur could overcome the barrier of having no savings to invest.

An entrepreneur could seek financial support through loans, grants, or investment from venture capitalists or angel investors. Signup and view all the answers

Analyse one benefit of entrepreneurship to your country's economy.

Entrepreneurship stimulates economic growth by creating new jobs and fostering innovation. Signup and view all the answers

The ________ sector comprises businesses that are owned and operated by the government.

public Signup and view all the answers

Sole traders might struggle to raise __________ for expansion.

capital Signup and view all the answers

Which of the following is not a characteristic of a partnership?

Separate legal entity Signup and view all the answers

Private limited companies cannot sell shares to the public.

True Signup and view all the answers

Identify one quality of successful intrapreneurs.

Creativity Signup and view all the answers

Explain the term 'opportunity costs'.

Opportunity costs refer to the potential benefits an individual misses out on when choosing one alternative over another. Signup and view all the answers

Explain two qualities Rivelino has that make him a successful entrepreneur.

Rivelino has vision and a drive to succeed, which enable him to identify opportunities and persevere through challenges. Signup and view all the answers

Analyse two ways the partners’ management skills contributed to the success of TFS.

The partners’ complementary skills allowed for specialization in different aspects of the business management, and effective collaboration led to improved decision-making. Signup and view all the answers

Evaluate the benefits and limitations to Wesley of the detailed business plan.

The benefits include having a clear strategy for growth and securing funding, while limitations involve potential rigidity and reliance on predictions. Signup and view all the answers

Study Notes

Important Features of the Coursebook

This coursebook is designed to support the Cambridge International AS & A Level Business syllabus (9609) for examination from 2023.
The book covers the syllabus content and includes features such as:
- Learning intentions to help navigate the coursebook and indicate key concepts in each topic
- Business in context to provide real-world examples and raise important issues for discussion
- Tips to help with learning and avoiding common errors
- Activities, including case studies, evaluative and analytic questions, and opportunities for individual, pair, or group work
- Reflection questions to encourage assessment of learning and reflection on the process used to arrive at answers
- Extension: indicates content that extends beyond the requirements of the syllabus
- Key terms and formulae highlighted in the text with accompanying definitions
- Key concept links to explain how topics are integrated with key concepts in the syllabus
- Business in action: provides insight into how businesses apply key concepts
- Exam-style questions to help prepare for assessments
- Self-evaluation checklist to help learners rate their confidence in understanding the content

Introduction to Command Words

Command words are used in the Cambridge International AS & A Level Business syllabus (9609) and exam-style questions.
Understanding what each command word requires is essential for answering questions correctly.
The command words and their definitions are:
- Advise: suggest a course of action and make a reasoned judgement with a supported conclusion.
- Analyse: examine in detail to show understanding, identifying elements and relationships between them.
- Assess: make an informed judgement, comparing advantages and disadvantages, and coming to a supported conclusion.
- Calculate: work out from given facts or information, showing working and including units.
- Define: give a precise meaning, explaining the term clearly.
- Evaluate: judge or calculate the quality, importance, or value of something, making a reasoned judgement with a supported conclusion.
- Explain: set out purposes or reasons, making the relationships between things evident.
- Identify: name, select, or recognise a relevant point about a business term.
- Justify: support a case with evidence and argument, making a decision or coming to a conclusion.

Getting Started with Cambridge International AS & A Level Business

This section of the book prepares learners for the challenges and opportunities of studying Business at AS & A Level.
Studying Business will enhance career prospects and develop valuable skills.
The coursebook is designed for learners who have not studied Business before, as well as those who have studied it at Cambridge IGCSE level.
The Cambridge International AS & A Level Business syllabus requires a higher level of understanding and application than Cambridge IGCSE.
The skills required include knowledge, application, analysis, and evaluation, with more emphasis on analysis and evaluation at AS & A Level.
Wide reading around business issues, both nationally and internationally, is essential.### Differences between AS Level and A Level
More subject content is studied at A Level than at AS Level
Assessment skills are weighted differently, with more emphasis on subject knowledge and understanding at AS Level and higher-order skills of analysis and evaluation at A Level

Resources Needed

This coursebook and accompanying workbook
Means of keeping notes, exercises, assignments, and other written resources (e.g. file paper, laptop, or tablet computer)
Copy of the syllabus and past exam papers (becomes more important as the course progresses)
Access to business news reports and the internet

Mathematical Concepts in Business

Calculating and interpreting percentages and percentage changes
Calculating and interpreting ratios
Interpreting tables of data, pie graphs, line graphs, and bar charts
Drawing or completing simple line graphs
Reading off data from a line graph
Basic arithmetic operations (addition, subtraction, multiplication)

Skills Needed

Determination and ability to research information
Willingness and ability to read a variety of written sources (e.g. coursebook, newspapers, business case studies)
Decision-making ability to form a judgement and support it
Enthusiasm and ability to discuss issues with others
Reflecting on what is said during discussions to help business managers make the best decisions

Assessment Objectives

AO1: Knowledge and understanding of business concepts, terms, and theories
AO2: Application of business concepts, terms, and theories to problems and issues
AO3: Analysis of business problems, issues, and situations
AO4: Evaluation of evidence to make reasoned judgements and present substantiated conclusions

Key Concepts in Cambridge International AS & A Level Business

Change: the only constant, and the need for businesses to adapt
Context: understanding the basis for every business decision
Decision-making: affecting all levels in a business
Enterprise: the ability to seek out and develop business opportunities
Innovation: enabling businesses to re-invent themselves and stay ahead of the competition
Strategy: knowing where you are, where you want to get to, and how to get there

Unit 1: Business and its Environment

Understanding the nature and purpose of business activity
Identifying and analysing how businesses are set up, classified, and influenced by external factors
Recognising the importance of adding value to resources and meeting people's needs

The Nature of Business Activity

Businesses aim to satisfy people's needs by using resources to produce goods and services
Businesses operate in a constantly changing world, but the purpose of business owners and managers remains the same: to add value to resources while meeting people's needs
The factors of production needed by businesses include land, labour, capital, and enterprise
Adding value is essential for businesses to survive and make a profit

Economic Problem and Opportunity Cost

The economic problem is the fundamental problem of choice due to limited resources and unlimited wants
Opportunity cost is the value of the next best alternative given up when a choice is made

Dynamic Business Environment

The business environment is constantly changing, making it risky to set up and operate a business
Changes in the business environment include new competitors, legal changes, economic changes, and technological changes
A business plan should be flexible to adapt to these changes### Starting a Business
Sufficient capital is essential to inject into a business at start-up to operate during the initial months when cash flow from customers may be slow
Establishing good relations with banks can provide short-term cash problem solutions through overdraft extensions
Effective credit control over customers' accounts ensures timely payment

Entrepreneurial Skills

Most entrepreneurs lack management skills, including leadership, decision-making, cash handling, planning, and marketing
Entrepreneurs require innovation, commitment, self-motivation, multi-skilling, leadership, self-confidence, and risk-taking qualities
Entrepreneurs must be willing to work hard, have ambition, and be keen to learn and adapt

Types of Businesses

Local businesses operate in small, well-defined parts of a country and do not aim to expand nationally or internationally
National businesses have branches or operations across a country but do not operate internationally
International businesses sell products in more than one country, and multinational businesses have operations in more than one country

The Role of Entrepreneurs and Intrapreneurs

Entrepreneurs create new business ventures, often based on innovative product ideas or services
Intrapreneurs demonstrate entrepreneurial qualities within an existing business, encouraging innovation and creativity
Entrepreneurs and intrapreneurs require innovation, commitment, self-motivation, and risk-taking qualities

Barriers to Entrepreneurship

Lack of a business opportunity, sufficient capital, and good locations can be barriers to entrepreneurship
Competition and lack of a customer base can also hinder business success
Entrepreneurs must address these barriers to turn their business ideas into reality

Business Risk and Uncertainty

Business risk can be measured and calculated, whereas business uncertainty is unforeseen and unpredictable
Business planning can help reduce business risk, but uncertainty can still occur

The Role of Enterprise in a Country's Economic Development

Entrepreneurs create employment opportunities, stimulate economic growth, and promote innovation and technological change
Enterprise can lead to increased output, consumption, and tax revenues, improving living standards and national competitiveness
Entrepreneurship can also aid personal development, increase social cohesion, and promote exports

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Assess your understanding of business concepts with this quiz based on the Cambridge International AS & A Level Business Coursebook by Peter Stimpson and Alastair Farquharson.

Cambridge International AS & A Level Business Coursebook Quiz

Questions and Answers

What is the primary purpose of business activity?

What is an important factor that influences the success of an entrepreneur?

What key characteristic of successful entrepreneurs is mentioned?

What does adding value mean in the context of business activity?

Change within a business is a static process.

Who provided a loan to Mohammed Qamber Hussain to help finance his first restaurant?

Business activity does not require any resources.

What was the innovative concept of Mohammed's restaurants, Chottu Chai Wala?

What are the four factors of production needed by businesses?

All businesses need only financial capital to operate.

What is added value in a business context?

The economic problem refers to the shortage of _______ to satisfy all human wants.

Name a barrier that entrepreneurs must overcome to turn their business ideas into reality.

What are the key risks faced by entrepreneurs when starting a new business?

Which of the following reasons is commonly cited for business failure?

Match the following terms to their definitions:

What is the role of intrapreneurs in a business?

What is one major benefit of successful entrepreneurship to the economy?

Which of the following is an advantage of a private limited company?

In a public limited company, shareholders have unlimited liability.

What does 'plc' stand for?

The original owner of a private limited company often retains ______ interest in the company.

What is a disadvantage of a public limited company?

What is one reason why a private limited company might convert to a plc?

Which of the following correctly describes the formation of a public limited company?

Public limited companies must publish ______ and accounts annually.

Define the term 'adding value'.

Define the term 'entrepreneur'.

Analyse one characteristic of successful entrepreneurs.

Explain one barrier faced by entrepreneurs, apart from limited finance.

Explain one example of opportunity cost for an individual planning to become an entrepreneur.

Analyse one way a country is likely to benefit from the expansion of its business enterprises.

Explain one role of an intrapreneur in an existing business.

Analyse one benefit of a detailed business plan to an entrepreneur.

Explain one limitation of business plans.

Explain one reason why a new hairdressing business will need a factor of production of your choice.

Explain one need that a new business must fulfil if it is to be successful.

Analyse one way a supermarket could add value to the food and other goods it buys in.

Explain one reason why there are so many new business enterprises providing consumer services.

Explain one way in which an entrepreneur could overcome the barrier of having no savings to invest.

Analyse one benefit of entrepreneurship to your country's economy.

The ________ sector comprises businesses that are owned and operated by the government.

Sole traders might struggle to raise __________ for expansion.

Which of the following is not a characteristic of a partnership?

Private limited companies cannot sell shares to the public.

Identify one quality of successful intrapreneurs.

Explain the term 'opportunity costs'.

Explain two qualities Rivelino has that make him a successful entrepreneur.

Analyse two ways the partners’ management skills contributed to the success of TFS.

Evaluate the benefits and limitations to Wesley of the detailed business plan.

Study Notes

Important Features of the Coursebook

Introduction to Command Words

Getting Started with Cambridge International AS & A Level Business

Resources Needed

Mathematical Concepts in Business

Skills Needed

Assessment Objectives

Key Concepts in Cambridge International AS & A Level Business

Unit 1: Business and its Environment

The Nature of Business Activity

Economic Problem and Opportunity Cost

Dynamic Business Environment

Entrepreneurial Skills

Types of Businesses

The Role of Entrepreneurs and Intrapreneurs

Barriers to Entrepreneurship

Business Risk and Uncertainty

The Role of Enterprise in a Country's Economic Development

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