Photo AI
1. (a) Which one of the following is an example of a reward from business activity? Select one answer - Edexcel - GCSE Business - Question 1 - 2020 - Paper 1
Question 1
1. (a) Which one of the following is an example of a reward from business activity? Select one answer. - A Financial loss - B Increased overheads - C Indepe... show full transcript
Worked Solution & Example Answer:1. (a) Which one of the following is an example of a reward from business activity? Select one answer - Edexcel - GCSE Business - Question 1 - 2020 - Paper 1
Step 1
Which one of the following is an example of a reward from business activity?
Answer
The correct option is C. Independence. Independence is often viewed as a reward in business as it reflects the ability of the business owner to make decisions and run their business without external pressures.
Step 2
Step 3
Explain one benefit to a small business from having a unique selling point.
Answer
Having a unique selling point (USP) allows a small business to differentiate itself from competitors. This distinction can attract specific customers who seek that unique feature or quality. Additionally, a strong USP can lead to brand loyalty, as consumers are more likely to return to a business that offers something they cannot find elsewhere.
Step 4
Explain one advantage to a small business of using trade credit as a source of finance.
Answer
One significant advantage of using trade credit is that it allows a small business to acquire goods and services without immediate cash payment. This flexibility can help manage cash flow, enabling the business to allocate funds to other operational needs while still taking advantage of supplier relationships.