GCSE BUSINESS: MAY 2025: BUSINESS 2:
OPERATIONS, FINANCE AND INFLUENCES
ON BUSINESS COMPREHENSIVE STUDY
GUIDE 2026 FULL QUESTIONS AND
SOLUTIONS GRADED A+
◍ Financial business objectives.
Answer: survival, sales, profit, market share, and financial security
◍ Reasons Why Businesses Need Finance.
Answer: Starting up a new business, internal growth, takeover or acquisition
of another company, replacing old machinery and equipment, moving to
new premises, cash-flow problems and research and development.
◍ Non-Financial business objectives.
Answer: social objectives, personal satisfaction, challenge, independence,
and control
◍ What are business objectives?.
Answer: goals or targets set by a business
◍ Internal Finance.
Answer: Finance obtained from within the business. Does not have to be
paid back, no interest charge.
◍ What is financial return?.
Answer: total monetary returns of a business
◍ What is Profit Maximization?.
Answer: making as much profit as possible in a given time period
, ◍ External Finance.
Answer: Finance obtained from outside the business. Usually has to be paid
back, costs money in the form of dividends or interest.
◍ What are shareholders?.
Answer: owners of limited companies
◍ what are dividends?.
Answer: share of the profit paid to the shareholders of a company
◍ What is profit satisfaction?.
Answer: making enough money to satisfy the needs of the business owner
◍ Owners' Capital (Type of Finance).
Answer: Existing owners may invest more money into a business. May be
used for major business development such as a takeover or to pay off debts.
No cost involved. New businesses typically start like this as the owners will
invest their own savings.
◍ Retained Profit (Type of Finance).
Answer: Profit that is made by the business but kept back for its own use.
May be used to finance the purchase of equipment, premises and research.
Opportunity cost.
◍ What is automation?.
Answer: the use of technology to do a job instead of people
◍ Opportunity Cost.
Answer: The cost of missing out on something else. This need not to be
financially related.
◍ What are Economies of Scale?.
Answer: financial advantages of producing something on large quantities
◍ Large businesses are....
Answer: businesses that employ 250 or more people
◍ Sale of Assets (Type of Finance).
Answer: Selling off something that the business owns e.g. equipment and is
OPERATIONS, FINANCE AND INFLUENCES
ON BUSINESS COMPREHENSIVE STUDY
GUIDE 2026 FULL QUESTIONS AND
SOLUTIONS GRADED A+
◍ Financial business objectives.
Answer: survival, sales, profit, market share, and financial security
◍ Reasons Why Businesses Need Finance.
Answer: Starting up a new business, internal growth, takeover or acquisition
of another company, replacing old machinery and equipment, moving to
new premises, cash-flow problems and research and development.
◍ Non-Financial business objectives.
Answer: social objectives, personal satisfaction, challenge, independence,
and control
◍ What are business objectives?.
Answer: goals or targets set by a business
◍ Internal Finance.
Answer: Finance obtained from within the business. Does not have to be
paid back, no interest charge.
◍ What is financial return?.
Answer: total monetary returns of a business
◍ What is Profit Maximization?.
Answer: making as much profit as possible in a given time period
, ◍ External Finance.
Answer: Finance obtained from outside the business. Usually has to be paid
back, costs money in the form of dividends or interest.
◍ What are shareholders?.
Answer: owners of limited companies
◍ what are dividends?.
Answer: share of the profit paid to the shareholders of a company
◍ What is profit satisfaction?.
Answer: making enough money to satisfy the needs of the business owner
◍ Owners' Capital (Type of Finance).
Answer: Existing owners may invest more money into a business. May be
used for major business development such as a takeover or to pay off debts.
No cost involved. New businesses typically start like this as the owners will
invest their own savings.
◍ Retained Profit (Type of Finance).
Answer: Profit that is made by the business but kept back for its own use.
May be used to finance the purchase of equipment, premises and research.
Opportunity cost.
◍ What is automation?.
Answer: the use of technology to do a job instead of people
◍ Opportunity Cost.
Answer: The cost of missing out on something else. This need not to be
financially related.
◍ What are Economies of Scale?.
Answer: financial advantages of producing something on large quantities
◍ Large businesses are....
Answer: businesses that employ 250 or more people
◍ Sale of Assets (Type of Finance).
Answer: Selling off something that the business owns e.g. equipment and is
