Lecture notes
AQA A Level Business 3.1 - What is Business
- Institution
- AQA
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.
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3.1 – What is Business?Why businesses exist
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
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, 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
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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
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