Y9 Business Studies Term 3 Exam
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Questions and Answers

What is one advantage of being a sole trader?

  • Complete freedom to set work hours and prices (correct)
  • Limited liability for business debts
  • Guaranteed access to large bank loans
  • Mandatory reporting to external stakeholders

Which of the following is a significant disadvantage for sole traders?

  • Unlimited liability for business debts (correct)
  • They cannot form partnerships.
  • Guaranteed continuity after death
  • Ability to delegate tasks to others

What is a benefit of having close contact with customers for sole traders?

  • Consistency in business operations
  • Increased legal regulations
  • More employees to manage
  • Ability to respond quickly to customer needs (correct)

What should a partnership agreement outline regarding profit sharing?

<p>How profits will be divided among partners (D)</p> Signup and view all the answers

Which of these points is typically included in a partnership agreement?

<p>The duration of the partnership (D)</p> Signup and view all the answers

What can happen if a sole trader falls ill?

<p>The business may cease operations (B)</p> Signup and view all the answers

What is often a limitation for sole traders when seeking to expand their business?

<p>Limited sources of finance available (D)</p> Signup and view all the answers

What crucial aspect determines how tasks are divided in a partnership?

<p>The written partnership agreement (C)</p> Signup and view all the answers

Which advantage allows Mike to focus on marketing while Dave manages accounts?

<p>Shared responsibilities (A)</p> Signup and view all the answers

What is a disadvantage of their partnership regarding personal liability?

<p>Partners have unlimited liability (D)</p> Signup and view all the answers

What potential problem arises if one partner is dishonest?

<p>Financial loss to the other partner (C)</p> Signup and view all the answers

Which of the following is a benefit of forming a private limited company?

<p>Protection of personal assets from business debts (B)</p> Signup and view all the answers

What happens to a partnership if one partner dies?

<p>The partnership is dissolved (B)</p> Signup and view all the answers

Which statement best corresponds to the issue of business identity in partnerships?

<p>Partners share an unincorporated business identity (D)</p> Signup and view all the answers

What was a primary concern for Dave regarding their partnership?

<p>High levels of personal liability (D)</p> Signup and view all the answers

How can disagreements between partners affect the business?

<p>They can delay decision-making (B)</p> Signup and view all the answers

What does the term 'laissez-faire' mean?

<p>Allow to do (A)</p> Signup and view all the answers

Which leadership style involves minimal supervision and high employee autonomy?

<p>Laissez-faire (C)</p> Signup and view all the answers

What role involves giving support and guidance to employees?

<p>Consultation (B)</p> Signup and view all the answers

Which external cost is associated with oil production?

<p>Environmental damage (A)</p> Signup and view all the answers

What is one method of IT-based communication used for real-time interaction?

<p>Two-way radios (C)</p> Signup and view all the answers

Which method of influencing business decisions involves bad publicity?

<p>Media coverage (D)</p> Signup and view all the answers

What is an external benefit of investments in education?

<p>Knowledge production for society (D)</p> Signup and view all the answers

Which communication method is suitable for remote locations?

<p>Satellite communication (A)</p> Signup and view all the answers

What is a sole trader?

<p>A business owned and operated by just one person. (B)</p> Signup and view all the answers

What is NOT a legal regulation a sole trader must follow?

<p>Fulfill advertising laws for marketing. (B)</p> Signup and view all the answers

What must a sole trader do with their business name?

<p>Register it with the Registrar of Business Names. (D)</p> Signup and view all the answers

Which of the following is a requirement for operating as a sole trader in some industries?

<p>They must obtain a license to operate a taxi. (D)</p> Signup and view all the answers

Which type of pen is prohibited for use in the exam?

<p>Gel Pen. (D)</p> Signup and view all the answers

What should be used to correct mistakes on the exam paper?

<p>A rubber/eraser. (C)</p> Signup and view all the answers

What accounts must a sole trader send to the Government Tax Office?

<p>Annual accounts. (D)</p> Signup and view all the answers

What type of businesses is commonly recognized as a sole trader?

<p>An individual-owned business. (A)</p> Signup and view all the answers

What is one benefit of forming a private limited company?

<p>It allows for larger capital investments by selling shares. (D)</p> Signup and view all the answers

What does limited liability mean for shareholders?

<p>They can keep their possessions even if the company fails. (D)</p> Signup and view all the answers

What is one of the disadvantages of forming a private limited company?

<p>Documents must be sent to the registrar of Companies. (A)</p> Signup and view all the answers

Which documents are necessary for forming a private limited company?

<p>Articles of Association and Memorandum of Association. (C)</p> Signup and view all the answers

What can Millie's Managing Director be aware of?

<p>The company's operations can create external costs and external benefits. (B)</p> Signup and view all the answers

Why is the public able to inspect a company's accounts?

<p>To ensure transparency and company accountability. (D)</p> Signup and view all the answers

What leadership style is mentioned regarding Millie's managers?

<p>Laissez-faire (A)</p> Signup and view all the answers

What is a requirement before a company can start trading?

<p>Receive a certificate of incorporation. (D)</p> Signup and view all the answers

Flashcards

Sole Trader

A business owned and operated by a single individual who is solely responsible for its success or failure.

Government Tax Office

The governing body that collects taxes from individuals and businesses.

Annual Accounts

The official record of a business's financial performance over a specific period, usually a year.

Registering Business Name

The process where a business formally registers its name with a designated authority.

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Legal Regulations

Rules and regulations set by the government that all businesses must comply with.

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Licence (e.g., alcohol or taxi)

A specific legal document that grants permission to a business to operate in a particular industry.

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Health and Safety Laws

Laws designed to ensure a safe working environment for employees and the public.

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The Significance of the Business Name

The importance of a business name in terms of building brand recognition, attracting customers, and establishing a legal identity.

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Capital Investment in Partnership

The total funds contributed by each partner at the start of the business.

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Partner Responsibilities

A clear outline of each partner's responsibilities and tasks in running the business.

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Profit Sharing in a Partnership

The agreed-upon method of sharing profits made by the partnership.

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Duration of the Partnership

The specified duration of the partnership agreement.

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Partnership Agreement: Contingency Plans

Plans for managing absences, retirement, and welcoming new partners.

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Unlimited Liability

The potential risk for sole traders where personal assets can be seized to cover business debts.

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Autonomy in Sole Proprietorship

The benefit of being your own boss and having full control over business decisions.

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Profit Retention in Sole Proprietorship

The advantage for sole traders to keep all the profits after taxes.

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Laissez-faire leadership

A leadership style where managers give employees a high level of autonomy and minimal supervision, intervening only when necessary.

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Origin of "Laissez-faire"

Laissez-faire is a French term meaning "allow to do".

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Manager's roles

Managers play a crucial role in delegating tasks and providing support to their team.

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External cost or benefit

A benefit or cost that impacts individuals or society that is not reflected in the market price of a product or service.

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Two-way radios communication

Two-way radios allow real-time communication between workers, providing immediate feedback and enhancing coordination and safety.

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Satellite communication

A reliable method for transmitting data over long distances, especially useful in remote locations. It enables efficient communication even when geographically distant.

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Influencing Business Ethics

Pressure groups can influence a business to act more ethically by raising awareness and advocating for change.

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Publicity and Boycotts

Pressure groups can use media coverage to draw attention to a company's actions or to promote boycotts.

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Memorandum of Association

The official document outlining the company's purpose & structure, including its name, registered address, and the directors' information. It's one of the key documents needed to register a limited company.

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Articles of Association

The document containing the rules for managing the company, outlining how decisions are made, and responsibilities of directors and shareholders.

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Incorporation

The legal process of registering a limited company with the Registrar of Companies. It involves submitting required documents like the Memorandum and Articles of Association.

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External Costs and Benefits

The impact that a company's operations have on the environment, society, and the economy outside of its direct business activities. This can be positive (benefits) or negative (costs).

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Information Technology (IT) Based Communication

The use of computer systems, networks, and software to manage and share information within a company. This helps communication efficiency and collaboration.

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Share Sale

The process of a private limited company selling shares to raise capital and potentially expanding the business through new investments.

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Disadvantage of a partnership: Partner Negligence

When a partner is negligent or dishonest, the other partner may suffer financially, leading to potential conflict and loss of profit.

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Disadvantage of a partnership: Death of a Partner

In a partnership, if one partner passes away, the partnership dissolves. This can cause disruptions and necessitate restructuring the business.

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Disadvantage of a partnership: Disagreements

Partners may disagree on business decisions, leading to potential delays and conflicts in the management process.

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Disadvantage of a partnership: Shared Losses

Partners share business profits but also share any losses that occur, potentially leading to financial hardship for both.

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Advantage of a partnership: Shared Responsibilities

Shared responsibility can help divide work and improve efficiency, allowing partners to specialize in different areas for greater expertise.

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Advantage of a partnership: Increased Capital

Increased capital from multiple partners allows for greater investment and potentially faster business growth.

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Advantage of a partnership: Shared Motivation

Partners are motivated to work hard because they directly benefit from the success of the business, increasing productivity and dedication.

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Benefit of a private limited company: Limited Liability

A private limited company offers limited liability, protecting personal assets from business debts, even in case of bankruptcy.

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Study Notes

Exam Instructions

  • Exam title: 2024-2025 Term 3 Exam, Y9 Business Studies
  • Duration: 1.5 hours (12:00-13:30)
  • Total marks: 100
  • Materials allowed: Black or dark blue ballpoint pen, HB pencils (for notes, diagrams, or graphs only), highlighter, rubber/eraser.
  • Materials not allowed: Gel pens, erasable pens, correction fluid, dictionaries.
  • Exam instructions: Insert details in the table provided, do not fill in the last three columns, use the correct date, class year, and nickname at the top of the page, neatly cross out any mistakes on the answer paper.

Sole Traders

  • Definition: A sole trader is a business owned and operated by one person.
  • Legal Regulations:
  • Register with and report annual accounts to the Government Tax Office.
  • Register the business name with the Registrar of Business Names.
  • Follow relevant industry regulations, including health and safety laws and any licensing requirements (e.g., for alcohol sales, taxis).
  • Advantages:
  • Few legal regulations for setting up.
  • Complete control over the business.
  • Flexibility in holidays, working hours, and employee choices.
  • Close customer relationships and quick responses to needs.
  • Keeps all profits after tax.
  • Disadvantages:
  • Unlimited liability: Responsible for all business debts; creditors can seize personal assets.
  • Limited access to financing: Banks may be hesitant to lend large sums to sole traders.
  • No one to consult on business matters.
  • Business ceases upon the owner’s death or inability to operate.
  • Difficulty expanding the business.

Partnerships

  • Definition: A partnership is a business owned and operated by two or more people who agree to share in the profits and losses.
  • Key points in Partnership agreements:
  • The investment each partner made.
  • The tasks that each partner will be responsible for.
  • How the profits are to be shared.
  • Advantages of Partnerships:
  • More capital available
  • Shared responsibilities
  • Increased motivation and profits
  • Disadvantages of Partnerships:
  • Unlimited liability
  • Potential disagreements
  • Business may cease upon the death or inability to operate of one partner

Private Limited Companies

  • Benefits:
  • Limited liability for shareholders (protects personal assets from business debts)
  • Ability to raise larger sums of capital to invest in the business from selling shares.
  • Easier to expand the business
  • Disadvantages:
  • Significant legal steps and formalities in forming a company.
  • Company accounts are public record.
  • Loss of control for shareholders in decision-making unless they are on the board of the company.

Management Roles

  • Delegation roles: Managers delegate tasks to employees, guiding and consulting them but trusting them to handle the details and execution of their tasks.
  • Support roles: Provide support, guidance, consultation, and training to employees when needed.

External Costs and Benefits

  • Millie's Business Example:
  • External cost: Oil production's environmental impacts (pollution, damage, spills, health risks).
  • External benefit: Education's positive impact on society (knowledge, production).

IT Communication methods

  • Two-way radios (internal communication)
  • Satellite communication (for remote locations)

Pressure Groups

  • Methods to influence businesses:
  • Ethical behavior
  • Publicity campaigns
  • Boycotts to discourage customers from purchasing products.

Laissez-faire Leadership

  • Definition: A hands-off management approach. Allows employees significant autonomy and minimal supervision unless a problem occurs.

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Related Documents

Y9 Term 3 Business Studies Exam Paper PDF 2024

Description

Prepare for the 2024-2025 Term 3 Exam in Year 9 Business Studies. This exam covers important topics such as sole traders, their definitions, legal regulations, and advantages. Make sure to review the necessary materials and regulations before the exam.

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