Podcast
Questions and Answers
What is one advantage of being a sole trader?
What is one advantage of being a sole trader?
Which of the following is a significant disadvantage for sole traders?
Which of the following is a significant disadvantage for sole traders?
What is a benefit of having close contact with customers for sole traders?
What is a benefit of having close contact with customers for sole traders?
What should a partnership agreement outline regarding profit sharing?
What should a partnership agreement outline regarding profit sharing?
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Which of these points is typically included in a partnership agreement?
Which of these points is typically included in a partnership agreement?
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What can happen if a sole trader falls ill?
What can happen if a sole trader falls ill?
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What is often a limitation for sole traders when seeking to expand their business?
What is often a limitation for sole traders when seeking to expand their business?
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What crucial aspect determines how tasks are divided in a partnership?
What crucial aspect determines how tasks are divided in a partnership?
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Which advantage allows Mike to focus on marketing while Dave manages accounts?
Which advantage allows Mike to focus on marketing while Dave manages accounts?
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What is a disadvantage of their partnership regarding personal liability?
What is a disadvantage of their partnership regarding personal liability?
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What potential problem arises if one partner is dishonest?
What potential problem arises if one partner is dishonest?
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Which of the following is a benefit of forming a private limited company?
Which of the following is a benefit of forming a private limited company?
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What happens to a partnership if one partner dies?
What happens to a partnership if one partner dies?
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Which statement best corresponds to the issue of business identity in partnerships?
Which statement best corresponds to the issue of business identity in partnerships?
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What was a primary concern for Dave regarding their partnership?
What was a primary concern for Dave regarding their partnership?
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How can disagreements between partners affect the business?
How can disagreements between partners affect the business?
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What does the term 'laissez-faire' mean?
What does the term 'laissez-faire' mean?
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Which leadership style involves minimal supervision and high employee autonomy?
Which leadership style involves minimal supervision and high employee autonomy?
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What role involves giving support and guidance to employees?
What role involves giving support and guidance to employees?
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Which external cost is associated with oil production?
Which external cost is associated with oil production?
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What is one method of IT-based communication used for real-time interaction?
What is one method of IT-based communication used for real-time interaction?
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Which method of influencing business decisions involves bad publicity?
Which method of influencing business decisions involves bad publicity?
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What is an external benefit of investments in education?
What is an external benefit of investments in education?
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Which communication method is suitable for remote locations?
Which communication method is suitable for remote locations?
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What is a sole trader?
What is a sole trader?
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What is NOT a legal regulation a sole trader must follow?
What is NOT a legal regulation a sole trader must follow?
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What must a sole trader do with their business name?
What must a sole trader do with their business name?
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Which of the following is a requirement for operating as a sole trader in some industries?
Which of the following is a requirement for operating as a sole trader in some industries?
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Which type of pen is prohibited for use in the exam?
Which type of pen is prohibited for use in the exam?
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What should be used to correct mistakes on the exam paper?
What should be used to correct mistakes on the exam paper?
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What accounts must a sole trader send to the Government Tax Office?
What accounts must a sole trader send to the Government Tax Office?
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What type of businesses is commonly recognized as a sole trader?
What type of businesses is commonly recognized as a sole trader?
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What is one benefit of forming a private limited company?
What is one benefit of forming a private limited company?
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What does limited liability mean for shareholders?
What does limited liability mean for shareholders?
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What is one of the disadvantages of forming a private limited company?
What is one of the disadvantages of forming a private limited company?
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Which documents are necessary for forming a private limited company?
Which documents are necessary for forming a private limited company?
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What can Millie's Managing Director be aware of?
What can Millie's Managing Director be aware of?
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Why is the public able to inspect a company's accounts?
Why is the public able to inspect a company's accounts?
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What leadership style is mentioned regarding Millie's managers?
What leadership style is mentioned regarding Millie's managers?
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What is a requirement before a company can start trading?
What is a requirement before a company can start trading?
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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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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.
