Making the Business Effective | Edexcel GCSE Business (1BS0)
Making the Business Effective
- 75 questions
- 5 subtopics
- Paper 1
- Paper 1
Making the Business Effective is examined in Paper 1, Investigating small business (Theme 1).
It covers business ownership and limited liability, franchising as a start-up option, business location, the marketing mix and business plans.
Sample questions from Making the Business Effective
Answer each one closed book first, then open the answer.
-
Business ownership and limited liability
Give two advantages of being a sole trader.
Show the answer
A sole trader is easy and cheap to set up. The owner keeps all the profit and makes every decision. -
Business ownership and limited liability
Give two advantages of a private limited company.
Show the answer
Shareholders have limited liability, so their personal assets are safe. The company can raise capital by selling shares to family, friends or investors. -
Franchising as a start-up option
Why is a franchise less risky than starting an independent business?
Show the answer
The franchise uses a brand and product that customers already know and trust. The business model has already been tested in other locations. -
Franchising as a start-up option
Why might an entrepreneur who values independence avoid franchising?
Show the answer
A franchisee must follow the franchisor's rules on products, prices and appearance. The owner has little freedom to use their own ideas. -
Business location
Why might a business choose to locate near its competitors?
Show the answer
A cluster of similar businesses attracts customers who want to compare. Restaurants and jewellers often gather in the same street for this reason. -
Business location
Give two disadvantages of trading only online.
Show the answer
Customers cannot see or try products before buying. An online seller pays delivery costs and must handle more returns. -
The marketing mix
Why must the four elements of the marketing mix work together?
Show the answer
Each element affects the others, so a mismatch confuses customers. A luxury perfume needs a high price, elegant promotion and upmarket stores. -
The marketing mix
Give an example of a business changing its marketing mix because consumer needs changed.
Show the answer
Supermarkets added vegan ranges as more customers cut out meat. Many also expanded online delivery as shoppers wanted more convenience.
The 5 subtopics
One subtopic is one session. Work down the list.
| Subtopic | What it covers | Questions |
|---|---|---|
| Business ownership and limited liability | Limited and unlimited liability, separate legal identity, sole traders, partnerships and private limited companies with their advantages and disadvantages, and the role of Companies House. | 17 |
| Franchising as a start-up option | What a franchise is, the franchisor and the franchisee, fees and royalties, why a franchise is less risky but costly to start, and how the agreement protects the brand. | 14 |
| Business location | Locating near the market, labour, materials or competitors, how the nature of the business decides location, and how trading online changes the decision. | 14 |
| The marketing mix | Product, price, promotion and place, balancing the mix, how competition and changing needs alter it, and how e-commerce, digital communication and technology have changed each element. | 15 |
| Business plans | What a business plan contains and why, from market research to forecasts, finance and location, how it reduces risk and wins loans, and its limitations. | 15 |
How the guide is worked
Answering a question from memory stores it far better than reading the answer again. The guide runs that as a fixed procedure on one subtopic at a time, about twenty minutes a session.
-
Step 1 · Closed book
Cover the answers. Work through one subtopic and write down what you can. Leave blanks where you have nothing.
-
Step 2 · Open book
Go back to the top. Read each printed answer and write it out in full, including the ones you had right.
-
Step 3 · Closed book again
Same questions, same order, from memory. The gap between pass one and pass three is the session result.
Read the full method, the return schedule and the research behind it.
Nearby topics
Edexcel GCSE Business Active Recall Guide
Every topic, not just this one. 672 questions with their answers.