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AS / Level – Business (9609) – PAPER 1 – Short-Questions AATIK TASNEEM | AS / LEVEL: BUSINESS (9609) | 03041122845 1 SECTION 1 Topic 1: Enterprise 2+3 MARKS (M/J 2017, V3), Q1 (a) Define the term ‘opportunity cost’. [2] (b) Explain how a business decision involves opportunity cost, using one appropriate example. [3] Answer (a) (2) Opportunity cost is regarded as the next best alternative foregone. (b) One way a business decision might involve opportunity cost is that for example if a business has $1million. It can either spend it on expansion to a new country or invest in research and development. If the businesses choose to invest it in expansion, the research and development becomes the opportunity cost.
AS / Level – Business (9609) – PAPER 1 – Short-Questions AATIK TASNEEM | AS / LEVEL: BUSINESS (9609) | 03041122845 2 (O/N 2021, V2), Q1 (a) Define the term ‘entrepreneur’. [2] (b) Explain one quality of a successful entrepreneur. [3] Answer (a) (1) An entrepreneur is an individual who organizes the factors of production, (2) has the new idea for the business, invested capital to assumes the risk with usually the aim of generating profit. (b) (1) One quality of a successful entrepreneur is that they are good leaders. (2) This means that they are able to set goals, guide their junior employees how to achieve that goal willingly and effectively. (3) This leads to their businesses achieving their business objectives in time and stay competitive against rival brands.
AS / Level – Business (9609) – PAPER 1 – Short-Questions AATIK TASNEEM | AS / LEVEL: BUSINESS (9609) | 03041122845 3 (New Addition) Q1 (a) Define the term ‘intrapreneur’. [2] (b) Explain one benefit to a business of hiring intrapreneurs. [3] Answer (a) (1) A business employee who takes direct responsibility for turning idea into a profitable new product of business venture. (2) They develop an innovative product within an existing business where the risk and reward remain with the business. (b) (1) Intrapreneurs are creativity and innovative. (2) These individuals help the business to create new products and methods of selling due to their high skill. (3) This helps the business to differentiate itself from rival brands which help to increase business sales.
AS / Level – Business (9609) – PAPER 1 – Short-Questions AATIK TASNEEM | AS / LEVEL: BUSINESS (9609) | 03041122845 4 (New Addition) Q2 (a) Define the term ‘Business Plan’. [2] (b) Explain one benefit to a busines of developing a business plan. [3] Answer (a) (1) A written document that describes a business, its objectives, its strategies, the market it is in and its financial forecasts. (2) It includes executive summary, marketing and sales strategy, management team, operations and finance. (b) (1) It helps to gain investors. (2) Since investors can see what is the financial plan along with the financial details like estimated profits and cash flows. (3) This increases their willingness to invest in the business which allows the firm to raise startup money and in the future capital for expansion which ensure survival in the short-run and growth in the long-run.