Edexcel A Level Economics B
Edexcel A Level Economics B 1.2 Enterprise, Business and the Economy Exam Questions
Free Edexcel A Level Economics B exam questions on 1.2 Enterprise, Business and the Economy, with mark schemes. Covers entrepreneurs, business objectives and forms of business.
1.2 Enterprise, Business and the Economy exam questions
1 question pack of real past exam questions with its mark scheme. Answer every question without notes, then mark your answers line by line against the mark scheme.
StemUp mark scheme flashcards
A Level Economics Flashcards
Every answer is written in mark scheme wording, so you learn exactly what examiners give marks for. Pick your exam board, then test yourself with the questions on this page.
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About Edexcel A Level Economics B 1.2 Enterprise, Business and the Economy
1.2 looks at the people and organisations that create output. Questions often ask why entrepreneurs matter to the economy and how a firm's form affects its aims.
What you need to know
- The role of entrepreneurs They organise factors of production, take risks, innovate and create jobs and growth.
- Forms of business Sole traders, partnerships, private and public limited companies, social enterprises and not-for-profit organisations, with limited and unlimited liability.
- Business objectives Survival, profit, growth, market share, social and ethical goals.
- Enterprise and the economy Enterprise drives competition, innovation and productivity growth.
Common mistakes in 1.2 Enterprise, Business and the Economy
- Mixing up limited and unlimited liability.
- Assuming every business aims only to maximise profit.
- Describing an entrepreneur as just a business owner without mentioning risk and innovation.
Try three 1.2 Enterprise, Business and the Economy exam-style questions
1. Define limited liability. (2 marks)
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Owners are only responsible for business debts up to the amount they invested (1), so their personal assets are protected (1).
2. Explain one way entrepreneurs contribute to economic growth. (3 marks)
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Entrepreneurs start new businesses and introduce new products or processes (1), which creates jobs and output (1) and increases competition and productivity (1).
3. State two possible objectives of a social enterprise. (2 marks)
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Any two: social or environmental goals, reinvesting profit in the community, providing jobs for disadvantaged groups, covering costs (1 each).
1.2 Enterprise, Business and the Economy FAQs
What does Edexcel A Level Economics B 1.2 cover?
The role of entrepreneurs, forms of business, business objectives and how enterprise affects the economy.
Why is limited liability important?
It reduces risk for investors, making it easier for firms to raise finance and grow.
Do I need to know specific business forms?
Yes. Know sole traders, partnerships, private and public limited companies and social enterprises.
Revise this topic with flashcards: A Level Economics Flashcards, with mark scheme answers for Anki and Quizlet.
