PAST PAPERS

• What does the term 'capital' refer to in production?

  Resources used in the production process
• What are two examples of capital?

  Money and machinery
• What type of resources does capital include?

  Only man-made resources
• What are the three types of capital mentioned?

  Financial, fixed, and working capital
• What is one source of capital for starting a business?

  Personal savings
• Who can provide capital besides personal savings?

  Friends and family
• What role do banks play in capital sourcing?

  They provide loans for businesses
• What is a grant?

  Money given without repayment
• What is the purpose of venture capitalists?

  To invest in startups for returns
• What is one way to raise capital through ownership?

  Selling shares in the company
• What defines a partnership in business?

  Owned by two or more persons
• What is one benefit of a partnership over a sole trader?

  Access to more capital
• How does expertise differ between a sole trader and a partnership?

  Partnerships have a wider knowledge pool
• Why is continuity an advantage in a partnership?

  Business can continue after a partner's death
• What is one ethical issue related to taxation for businesses?

  Tax evasion and dishonest reporting
• What is a concern with advertising in business?

  False advertising can mislead consumers
• How can businesses impact the environment?

  By creating waste during production
• What is one unethical practice related to money in business?

  Money laundering
• What is the purpose of a feasibility study?

  To assess if a business idea is practical
• What does 'feasible' mean in a business context?

  Capable of being done or accomplished
• Why is it important to conduct a feasibility study before starting a business?

  To ensure the idea is possible in the market
• What is one type of business document used for inquiries?

  Letter of inquiry
• What is a quotation in business documents?

  Estimate of costs for goods or services
• What is a purchase order?

  Document to confirm a purchase
• What does an advice note indicate?

  Confirmation of goods being shipped
• What is a requisition form used for?

  Requesting items between departments
• What is an invoice?

  Document detailing a sale and payment
• What is a credit note?

  Document showing a deduction for faulty goods
• What is a pro forma invoice?

  Estimate of costs, not a true invoice
• What is the purpose of financial documents in business?

  To reveal profit and loss information
• What is a credit note used for?

  To show deductions for faulty goods
• What is a pro forma invoice?

  A document that resembles an invoice but isn't a true invoice
• How can a pro forma invoice be used when buying a car?

  To obtain a loan based on the invoice amount
• What are some financial documents used in business?

  • Profit and loss statements
  • Income statements
  • Credit notes
  • Invoices
• Why do firms utilize documents in business transactions?

  To keep a record of transactions
• What is one reason for tracking shipment progress with documents?

  To ensure timely delivery of goods
• Why are documents needed for insurance purposes?

  To provide proof for reimbursement claims
• What legal reasons necessitate documentation in business?

  To comply with government regulations and taxes
• How can documentation help in analyzing business trends?

  It allows businesses to review historical data
• What is traceability in documentation?

  Tracking the origin of products for safety