These documents contain all of the notes for Chapter 3.1 for the 2021/2022 exam season for A-level business for the AQA exam board. I got an A using these notes.
Business – An organisation or individual that provides a good or service to customers
Tangible – A real thing
Goods / products are tangible
Services are intangible
Four factors of production – The 4 things a business needs to be able to produce their
goods / services.
1. Capital (Finance)
2. Enterprise (Skills of employees to combine the other 3)
3. Land (Natural resources and location)
4. Labour (Workers)
Value added
Needs – In order to survive
Wants – In order to enjoy
Why businesses exist:
Create wealth
Create jobs
Benefit society
Support other businesses (supply chain)
Provide a source of tax revenue for the government
1
, 3.1 – What is Business?
Aims and Objectives
Aim – Generic, broad, long-term goals for the future.
Objective – More specific, SMART, short-term goals to achieve aims.
Specific
Measurable
Agreed
Realistic
Time-related
Types of aims:
Survival – At least break even
Growth – Reinvest profits to increase market share
Profit maximisation – Increase revenue or cut costs
p
r
o
f
i
t
¿
r
e
v
e
n
u
e
− ¿ c
o
s
t
Growth – Increase market share
m
a
r
k
e
t
s
h
a
r
e
¿
b u s i n e s s s a l e s
t o t a l m a r k e t s a l e s
¿
1 0 0
Objectives hierarchy:
1. Aims – One of the 3 types
2. Mission statement
3. Corporate objectives – Relate to the business as a whole e.g., increase market share
by 5% in 3 years.
4. Functional objectives – Help achieve corporate objectives
Influences on business objectives:
Size of business
Private/public sector
Market
Ownership
Mission Statements
2
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller saiirving. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.79. You're not tied to anything after your purchase.
