Entry Level Certificate

ENTRY LEVEL CERTIFICATE

BUSINESS STUDIES

COURSEWORK

UNIT 1

WHAT IS BUSINESS?

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Entry Level Certificate Business Studies Unit 1

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Entry Level Certificate Business Studies Unit 1

What is business?
WHAT IS BUSINESS?

Businesses exist to provide goods and services that people want or need.

AFill in the grid below with twenty businesses which you would expect to find in a town centre, e.g. shoe shop.

Goods are visible items which can be touched, e.g. a chair.

Services are provided for the benefit of customers and are invisible, e.g. a hair cut given by a hairdresser.

What does a business do?
WHAT DOES A BUSINESS DO?

Complete the chart below with 10 businesses you know and tick  whether they provide goods and/or services. In the last column give examples.

Business Name / Goods / Services / Examples
E.g. Boots - Chemist /  /  / Good - Shampoo Service - Prescriptions
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Remember! Goods are visible, services are invisible.
Who owns businesses?
WHO OWNS BUSINESSES?

This activity will require you to research different types of businesses. This could involve text book research, classroom discussion, visits, interviews, writing letters and internet research.

AYou have decided to start up in business on your own.

This type of business is called a s_ _ _ t_ _ _ _ _.

BUsing a textbook, find out about SOLE TRADERS and produce a word processed information sheet which includes answers to the following questions:

What is a sole trader?
What are the advantages of sole traders?
What are the disadvantages of sole traders?

WHO OWNS BUSINESSES?

CYou are doing well in your business and would like to expand. You are looking for a friend or "partner" to put money into the business.

(i)A business owned by two people is called a p______.

(ii)Working with someone else in the class, list four qualities you would be looking for in a good partner.

1.______

2.______

3.______

4.______

DYou and your partner want to make the business even larger and decide to form a company as you need £50,000 to open a small factory.

Eight other people have now agreed to offer money to buy shares in the business.

(i)Each person who puts money in the business is called a s______.

(ii)This type of business is called a private l______c______.

WHO OWNS BUSINESSES?

(iii)If each of the ten shareholders put in the same amount of money, how much money would each person need to give to the business?

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(iv)If a profit is made, how many people will need to get a "share" of the profits?

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(v)If the business makes a profit of £5,000, how much will each shareholder receive?

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EYour business has become even more successful. You have decided to open another larger factory and need more money. Anyone can now buy a share in this business. This type of business is known as a

p_ _ _ _ _ l______c______.

WHO OWNS BUSINESSES?

FWhat is the difference between a private limited company and a public limited company?

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In the table below, list the names of three private limited companies and three public limited companies and state what they do. You can look at the "Yellow Pages" or newspapers to help you find the answers.

Name of Company / What the Company Does/Provides
WHO OWNS BUSINESSES?

GInvestigate a local charity. Word process a short paragraph saying how the charity gets its money and what the charity does.

HFRANCHISE

In a franchise, a person wishing to set up a business can buy the rights to sell the goods or services of a well-known large company, e.g. Burger King.

Give TWO reasons why someone might want to take on a franchise.

(i)______

______

(ii)______

______

WHO OWNS BUSINESSES?

IDraw arrows to match the name of each business with its type of ownership.

BusinessType of ownership

J Patra, newsagentPublic limited company

McWilliams and Evans, SolicitorsPrivate limited company

Scope LtdFranchise

Marks and Spencers plcSole trader

McDonaldsCharity

OxfamPartnership

Why do businesses exist?

WHY DO BUSINESSES EXIST?

AThere are many reasons why businesses are set up. These could include:

To make a profit
Ambition
To help people in need

Below are quotes from business owners.

(i)Mr Patra - corner shop

"I've always wanted to run my own corner shop. I enjoy dealing with the customers. I have plenty of time to spend with my family."

(ii)Mecca Store plc

"We want to be the biggest electrical retailer in the country. We plan to open 20 new stores this year."

(iii)Oilco plc

"While we are concerned about nature and pollution we must make as much profit as possible for our shareholders."

Write a sentence stating the main aim of each of the above businesses.

1.______

______

2.______

______

3.______

______

WHY DO BUSINESSES EXIST?

BYou wish to find out the reasons why people run businesses.

In order to complete this task you will need to discuss how to layout a questionnaire.

(i)Design your own questionnaire which could include some of the questions below.

What type of business do you own?

Why did you set up in business?

How long have you been in business?

What are the good things about running a business on your own?

What are the hard things about running a business on your own?

(ii)Working in groups, add other questions to this list.

(iii)Talk to a business owner in the local area and find out the answers to the questions. If this is not possible, your teacher may either show a video of a business or arrange for a business owner to visit the school.

(iv)Word process a paragraph based on your findings.

WHY DO BUSINESSES EXIST?

C(i)Either on your own or in a group, suggest THREE possible ideas for a small business in your school.

______

(ii)Conduct a survey in the class and if possible, with other pupils, find out which is the most popular idea. Below is an example to help you.

Which idea do you like best?

Select ONE option only!

Tuck Shop / 
Stationery Shop / 
Vending Machine / 

(iii)Transfer your chart findings onto a spreadsheet and print out a copy.

(iv)Produce a graph using the spreadsheet you have created.

WHY DO BUSINESSES EXIST?

(v)Use a simple plan of the school.

In a group:

Talk about where the business might be placed.

Make a presentation to the rest of the class to explain why you have chosen this place for the business.

Suggestions for the presentation:

Draw out the plan on a large poster.

Word process a paragraph to be read to the class giving reasons for the place which has been chosen.

Prepare an overhead for the overhead projector listing the main points from the paragraph.

What do businesses need?
WHAT DO BUSINESSES NEED?

AIf you decided to set up a small business in the school, list four things that you would need.

(i)______

(ii)______

(iii)______

(iv)______

BHaving listened to a talk, watched a video or gone on a visit, complete the table below.

What do you need to run a business? / Where does it come from?

CDesign a poster letting everyone else in the school know about the business, what it does, where it will be and when it will be open.

How do businesses affect the community?
HOW DO BUSINESSES AFFECT THE COMMUNITY?

Look at the picture.

From the picture, list THREE benefits and TWO problems which arise from a large business coming to the area.

HOW DO BUSINESSES AFFECT THE COMMUNITY?

List THREE benefits.

1.______

______

2.______

______

3.______

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List TWO problems.

1.______

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2.______

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IH/ME/W47(05)

24 May 2005

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Entry Level Certificate Business Studies - Unit 1