Business Activity | OCR GCSE Business (J204)
Business Activity
- 95 questions
- 6 subtopics
- Component 01
- Component 01
Business Activity is examined in Component 01, Business 1: business activity, marketing and people.
It covers enterprise and entrepreneurship, business planning and the business plan, sole traders, partnerships and limited companies, business aims and objectives, internal and external stakeholders and organic and external growth.
Sample questions from Business Activity
Answer each one closed book first, then open the answer.
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Enterprise and entrepreneurship
Why must an entrepreneur develop an idea before launching a business?
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Development turns a rough idea into a product customers will buy at a price that covers its costs. A test of the idea at this stage can reveal problems before money is spent. -
Enterprise and entrepreneurship
Explain the concept of risk and reward in business.
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Risk is the chance that a business will fail and the owner will lose money. Reward is the return for taking that risk, such as profit and personal satisfaction. -
Business planning and the business plan
Why does a bank usually ask to see a business plan before lending?
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A business plan shows the bank how the loan will be used and how it will be repaid. The bank can judge the risk of lending from the forecasts. -
Business planning and the business plan
Why do investors want to see market research in a business plan?
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Market research shows investors that there is real demand for the product. Evidence of demand makes the investment less risky. -
Sole traders, partnerships and limited companies
State two disadvantages of a partnership.
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Partners can disagree about how the business should be run. Most partners have unlimited liability, so each can lose personal assets to pay the business's debts. -
Sole traders, partnerships and limited companies
Give two advantages of becoming a public limited company.
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A plc can raise very large amounts of capital by selling shares to the public. A plc's size and public profile also make it easier to borrow from banks. -
Business aims and objectives
Why might a business set an objective to increase its market share?
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A larger market share means more customers buy from the business than from its rivals. A market leader is better known and has more influence over prices. -
Business aims and objectives
Why do different businesses have different objectives?
Show the answer
Businesses differ in size, age, ownership and the market they operate in. The owners' own priorities also shape what a business aims for.
The 6 subtopics
One subtopic is one session. Work down the list.
| Subtopic | What it covers | Questions |
|---|---|---|
| Enterprise and entrepreneurship | Enterprise and the entrepreneur, the purpose of business activity, spotting and developing an opportunity, the qualities of a successful entrepreneur, and weighing risk against reward. | 16 |
| Business planning and the business plan | Why businesses plan, what a business plan contains, how it identifies the market, resources and finance, why banks and investors ask for one, and its limitations. | 15 |
| Sole traders, partnerships and limited companies | Sole traders and partnerships with their advantages and disadvantages, limited and unlimited liability, private and public limited companies, and choosing the right ownership as a business grows. | 16 |
| Business aims and objectives | Aims and SMART objectives, survival, profit, growth and market share, social enterprises, how objectives change as a business evolves, and a worked profit target. | 16 |
| Internal and external stakeholders | Internal and external stakeholders and what owners, employees, customers, suppliers, government and the community each want, why their objectives conflict, and how each can influence a business. | 16 |
| Organic and external growth | Organic growth through new customers and products, external growth by merger or takeover, horizontal, vertical and backward or forward integration, diversification, and the case for each. | 16 |
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.
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Step 1 · Closed book
Cover the answers. Work through one subtopic and write down what you can. Leave blanks where you have nothing.
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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.
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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
OCR GCSE Business Active Recall Guide
Every topic, not just this one. 582 questions with their answers.