The political & legal environment of business

In the Source Booklet, look at Figure 3 and read Extract B, then answer Question 7.

State one way that Teendrive must meet employment law.

Table 4 shows the price of block booked driving lessons at Teendrive.

Using the information in Table 4, identify which block of lessons would be the most expensive per individual lesson .

Outline one reason why the idea of Teendrive came about.

In order to increase market share, the owner of Teendrive is considering two options:

Option 1: use market mapping to target new customers

Option 2: increase spending on advertising.

Justify which one of these two options Teendrive should choose.

Evaluate the likely impact of an improvement in the economic climate to the success of Teendrive. You should use the information provided as well as your knowledge of business.

Which two of the following could be used to collect secondary market research?

Select two answers.

Which two of the following are covered by employment law?

Select two answers.

Table 1 contains information for a small business.

Using the information in Table 1, calculate the total costs for the small business. You are advised to show your workings.

Explain one disadvantage to a small business from using retained profit for expansion.

Explain one advantage of opening up a business as a franchise.

Which two of the following are examples of customer needs?

Select two answers.

Which two of the following are roles of an entrepreneur?

Select two answers.

Table 1 contains information about a small business.

The business increases the selling price of its product to £6.50 per unit.

Using the information in Table 1, calculate the decrease in the break even level of output. You are advised to show your workings.

Explain one way a small business could become more competitive.

Explain one advantage to a small business of meeting its legal obligations.

Which one of the following is a definition of insolvency?

Select one answer.

Figure 1 shows the cash-flow of a business from May to August.

Using the information in Figure 1, calculate the total net cash-flow from May to August. You are advised to show your workings.

Explain one way a small business could reduce its variable costs.

Explain one advantage to a small business of meeting all employment legislation.

Discuss how possible conflicts between owners and employees could affect the profit of a small business.

Which one of the following is a disadvantage of starting a partnership?

Select one answer.

Figure 1 shows the sales revenue of a business from January to April.

Using the information in Figure 1, calculate, to 2 decimal places, the percentage decrease in sales revenue from January to March. You are advised to show your workings.

Explain one disadvantage to a small business of an increase in interest rates.

Explain one disadvantage to a small business of manufacturing a high quality product.

Discuss the impact on a small business from the introduction of new employment laws.

Which two of the following are elements of the marketing mix?

Select two answers.

Which two of the following areas are covered by employment law?

Select two answers.

Table 1 contains information about a small business for one month. The business sold 340 units in this month.

Using the information in Table 1, calculate the total costs for one month. You are advised to show your workings.

Explain one possible non-financial aim an entrepreneur may have when starting a small business.

Explain one disadvantage to a small business of using qualitative data for market research.