Exam (elaborations)
AQA A level Business Studies - 2024 Exam Questions and Answers
- Course
- Institution
AQA A level Business Studies - 2024 Exam Questions and Answers
[Show more]
Seller
Follow
RevisionKing
Reviews received
Content preview
AQA A level Business Studies - 2024Exam Questions and Answers
What is a business objective? Why is one needed? - Answer>> - It is a
goal for the entire organisation
- They guide the actions of those withing the business
What are the main objectives a business might have? (8) - Answer>> -
Growth
- Reduction of risks / diversification
- Profit (reduce production costs / increase price)
- Survive (applicable for most start-up companies
- Cash flow objective (making sure the cash flowing into a business is
enough to cover what must pay out in any period)
- Ethical objectives (environment, fairtrade etc)
- Becoming the market leader
- Stakeholder Objectives (keeping the shareholders / employees /
government happy)
What is a Stakeholder? - Answer>> A stakeholder is an individual / group
of peope with an interest in the business e.g - workers, shareholders,
government etc
What is a public limited company? - Answer>> A company that is owned
by shareholders (generally a larger company)
What does niche mean? - Answer>> A small specific market aimed at
only a few types of people
How is profit calculated? - Answer>> total revenue - total cost
(money in - money out)
What are the two types of costs? What are they and what are some
examples? - Answer>> Fixed cost and Variable cost
Fixed - If output changes, fixed costs do not change
e.g - rent of the building, salary of the worker
,Variable - As output changes, so do variable costs
e.g - costs of materials
What do the letters SMART stand for in regards to business objectives? -
Answer>> Specific
Measurable
Agreed
Realistic
Timescale
^ used for making company goals
What does qualitative mean? - Answer>> With no data / facts
What is a mission statement? - Answer>> A qualitative statement of an
organisation's aims that uses language intended to motivate employees
and convince customers, suppliers and those outside the firm of it's
sincerity and commitment
How and why does a company's mission link to its objectives? -
Answer>> - Objectives allow companies to reach the aims in their
mission statement
- A company must understand it's mission / overall goals to form objectives
How do we structure an 8 mark analysis question? - Answer>> PECAn
Point
Explain
Context
Analysis
What is the difference between a public and a private sector business? -
Answer>> Public sector - controlled by the government (things we should
all have the right to)
Private sector - privately owned (shareholders / owners)
What are some examples of each business sector? - Answer>> Public -
BBC, NHS, Ofsted
Private - ITV, Bupa, Coca-Cola
,What are the advantages of private over public sector and vice-versa? -
Answer>> Public - more available, worse service, paid for through tax
(funded by the government)
Private - less available, better service (each company is competing for your
money), paid for directly by the consumer
What is the difference between an incorporated and unincorporated
business? - Answer>> An unincorporated business is a business
whereby there is no legal distinction between the business and the owner.
An incorporated business has a separate legal identity to its owner(s).
What is a liability? - Answer>> A debt or financial obligation for which
someone is responsible
What is the difference between limited and unlimited liability? Which kinds
of businesses have which kind of liability? - Answer>> Unlimited: The
owner(s) is personally responsible for the company (possessions can be
repossessed)
Limited: Owner / shareholders are not personally responsible for the
company
An unincorporated business have unlimited liability. An incorporated
business will have limited liability
What is a Sole Trader? What kind of liability do they have? - Answer>> A
Sole Trader is one person setting up their own business. They have
Unlimited Liability
What are some Pros and Cons of being a Sole Trader? - Answer>> Pros:
You get all the profit
Cons: There's much more risk, possessions can be repossessed, you have
to rely on yourself / external corporation if you have any problems
, What is a Partnership? What kind of liability do they have? - Answer>> 2
or more people with an equal share in the company.
They have Unlimited Liability
What are some Pros and Cons of being in a Partnership? - Answer>>
Pros: Distributes risk, increases growth which means increased profits,
increased budget
Cons: Still liable for the company, less percentage of the profit goes to the
original owner
What is a Private Limited Company (LTD)? What kind of liability do they
have? - Answer>> Has shareholders, but only those invited.
They have Limited Liability
What are some Pros and Cons of an LTD? - Answer>> Pros: Less risk
because you're not liable, less risk than a PLC because it's not public, so
no risk of a takeover, even more increased growth
Cons: Less percentage of the profit goes to the original owner
What is a Public Limited Company (PLC)? What kind of liability do they
have? - Answer>> A company on the stock exchange (any member of
the public can become a shareholder)
They have limited liability.
What are some Pros and Cons of a PLC? - Answer>> Pros: Bigger
overall company, greater growth / profits
Cons: - Legally requires transparency in financial records (since it's public)
- At risk of a hostile takeover (where an individual / individuals obtain 51%
or more of the total overall shares)
- Less percentage of the profit goes to the original owner
Which legal business structures have shareholders? - Answer>> LTD's
and PLC's
Which legal business structures need at least £50,000 share capital to be
set up? - Answer>> LTDs and PLCs
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 RevisionKing. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
76799 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now