Year 9 Business Studies revision questions

Price, quality, reliability of delivery, and payment terms

Businesses weigh up several factors when choosing suppliers — competitive price, consistent quality, reliable and on-time delivery, and favourable payment terms.

$500

£400 x $1.25 = $500. Multiply the pound amount by the exchange rate to convert it into dollars.

To outline the duties, responsibilities and requirements of a job

A job description outlines the specific duties, responsibilities, and requirements of a position within a business. It serves as a guide for both employers and potential employees to understand what is expected in the role. Clear job descriptions help in attracting suitable candidates.

Sole trader

Sole traders and ordinary partners have unlimited liability — if the business owes more than it owns, personal possessions such as a house or car can be used to pay the debt.

£70

Revenue = 50 × £3 = £150. Profit = £150 − £80 = £70.

Many levels of management with clear lines of authority from top to bottom

A tall hierarchy has many layers — CEO → Directors → Managers → Supervisors → Workers — with clear authority and narrow spans of control.

Opening a new branch using retained profits

Organic growth uses a business's own resources — such as retained profits — to expand, without combining with another company.

Producing one unique item at a time, tailored to a customer's specific requirements

Job production makes a single unique product to a customer's specification - eg a bespoke wedding cake or a custom-built house. It is highly skilled but expensive per unit.

Being unable to physically try or test a product before buying

Online shoppers cannot touch, try on, or test a product before purchase, which can lead to more returns compared with buying in a physical shop.

Recovering and persisting after setbacks

Resilience is the ability to bounce back from failures and keep going — essential for entrepreneurs who face many obstacles.

Any individual or group that has an interest in or is affected by the activities of a business

Stakeholders include anyone with an interest in the business - shareholders, employees, customers, suppliers, local communities and governments. They do not need to own shares.

Low and growing slowly as the product becomes known

At launch, sales grow slowly — customers are unaware of the product, distribution is limited, and high promotion spending creates losses for most businesses.

Few management levels and wide spans of control

Flat structures have few layers between the top and bottom — managers oversee more people (wide span of control), enabling faster communication.

There is unsatisfied customer demand that no existing product or service meets

A gap in the market is an unmet customer need - an opportunity for a new business to provide a product or service that existing businesses are not supplying.

Shortlisting candidates for interview

After applications (CVs or application forms) are received, the business shortlists the most suitable candidates before inviting them to interview or assessment.

Shareholders want higher dividends while employees want higher wages

Stakeholder conflict arises when different groups have opposing objectives - eg shareholders wanting higher profits (which could mean lower wages) versus employees wanting higher pay.