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AQA A level Business Studies - 2024 Exam Questions and Answers
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- AQA A Level Business Studies
AQA A level Business Studies - 2024 Exam Questions and Answers
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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
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