1. USING COMMAND WORDS How to answer SQA exam questions!

2. COMMAND WORDS You should NEVER just write what you know about a topic. You must answer the question in a specific way. Ignoring the command word will result in no marks. Use a highlighter to underline the command word in the question.

3. COMMAND WORDS SUGGEST GIVE/NAME OUTLINE DESCRIBE COMPARE DISTINGUISH BETWEEN DEFINE IDENTIFY EXPLAIN Success Guide P8

4. EXPLAIN Explain one advantage and one disadvantage of one source of finance. 2 marks Identify one source of finance. Give one advantage using a link word – eg this means…… Give one disadvantage using a link word – eg which means that…. Good Answer: An advantage of a bank loan is that you don’t have to pay all the money back at once this means that if you are short of cash you can spread the payments. This also means that you will know exactly how much you have to pay each month and for how long you will have to pay the loan eg £100 per month for 12 months (1). A disadvantage of a bank loan is that you will need to pay it back with interest which means that you have to pay back more money than you borrowed (1).

5. COMPARE Compare the objectives of a charity with those of a partnership. 2 marks What are the similarities? Both …….. What are the differences between? …… whereas ….. Look for similarities first – easy marks! Good Answer: An objective for both a charity and a partnership could be to provide a service (1). An aim for a charity is to help a good cause whereas a partnership usually aims to make as much profit as possible (1). One Mark for Both Parts of Answer

6. DISTINGUISH BETWEEN Distinguish between the features of a sole trader with those of a partnership. 2 marks What are the similarities? Both …….. What are the differences between? …… whereas ….. You must talk about things which are different. Good Answer: A sole trader is owned by one person whereas a partnership is owned by between 2 and 20 people (1). A sole trader can set up a business with no legal documentation whereas a partnership requires a Partnership Agreement (1). One Mark for Both Parts of Answer

7. IDENTIFY Identify 2 sources of finance available to an organisation. 2 marks Good Answer: Two sources of finance available to an organisation are: A Bank Loan (1) and Trade Credit (1)

8. DESCRIBE Describe 2 sources of finance available to an organisation. 2 marks Give at least 2 ways an organisation can do this. Give illustrations or an example Must give a different illustration/example for each point. Good Answer: A bank loan is money which you receive from the bank – you pay it back in instalments - and you pay interest on it eg 8% (1). Trade credit is when you buy goods from a supplier but don’t pay for them immediately – you will pay for them at a later date – eg after 30 days (1).

9. GIVE Give 3 external factors that could affect a business organisation. 3 marks Good Answer: Three external factors which could affect an organisation are: Political (1) Economic (1) and Environmental (1)

10. DESCRIBE Describe 3 external factors that could affect an organisation. 3 marks Good Answer: Environmental factors – these are things like the changing weather - eg if it is snowing then stock may not get delivered and production may have to stop – if it is hot then products like food might deteriorate quickly (1). Political factors – these are things like a new law being passed by the government - eg new Health and Safety Legislation which means we need more fire extinguishers (1). Economic factors – these are things like interest rates increasing – if interest rates increase then mortgages will increase – if mortgages increase customers will have less money to spend on luxury goods and services.

11. YOUR TURN Q1: Identify 3 types of training. Answer: Induction Training, On the Job Training and Off the Job Training Q2: Describe one method of on-the-job training and one method of off- the-job training.2 marks Answer: One method of on-the-job training would be a demonstration by the line manager or another colleague. This would be undertaken in the employee’s own workplace where they are familiar with any equipment and/or software eg training in Office 2013.

12. A method of off-the-job training would be a course provided by the local college. The college would offer a course on a particular topic and the course would be delivered by an expert in that field eg interview skills. Choose from the following questions: 2009 Credit Describe 3 possible consequences to the business if their employees choose to take strike action. Describe the necessary skills and abilities required of an entrepreneur in starting a new business. Describe 3 stages involved in bringing a new product to the market. Describe 2 benefits of being a multinational company. Describe the purpose of preparing a cash budget. Describe the purpose of Appraisal. 2 2 2 3 3 4