AQA A LEVEL BUSINESS - UNIT 1
QUESTIONS WITH VERIFIED ANSWERS
2026
Key issues with different forms of business - correct answer-
Unlimited/ limited liability, Ordinary share capital, Market capitalisation and Dividends.
Budgets - correct answer-Agreed ceiling on the monthly spending by any department or manger.
Corporate Objectives - correct answer-
Targets for the whole business, such as profit to rise by 20% a year for the next 3 years for the whole b
usiness.
Delegated - correct answer-Decision making power is passed down the the hierarchy.
Entrepreneur - correct answer-Person with the initiative and drive to make a business idea happen.
Mission - correct answer-Over riding motivation or purpose of a business
Mission Statement - correct answer-
A short, powerful expressed sentence or two that explains the business aims clearly yet motivationally.
Objectives - correct answer-Targets precise enough to allow praise or blame for the person in charge.
Profit Optimisation - correct answer-
The surplus of revenue over costs should be just right; neither too high in the short term nor too low t
o finance long term success.
Strategy - correct answer-Medium to long term plan for meeting objectives.
Four business functions - correct answer-
Marketing, People (Human Resources), Finance and Operations.
, Reasons businesses exist - correct answer-
Human spirit, a sense of adventure, to lead people to what they can do, and to create income, meet c
onsumer demand.
Set businesses objectives - correct answer-
Managers cannot make every decision. Contributes towards achieving goals. These are reasons for doin
g what?
Benefits of setting objectives - correct answer-
Motivating for managers and for all staff to have a clear goal to aim towards. Also, they are the basis f
or devising a strategy.
Key Business Objectives - correct answer-
Profit Maximisation, Profit Optimisation, Growth, Cash Flow, Survival and Social and Ethical -
these are examples of key what?
Specific Measurable Achievable Realistic Timebound - correct answer-SMART stands for -
write each word
Bankrupt - correct answer-
INDIVIDUAL is unable to meet personal liabilities, some or all of which can be as a consequence of busi
ness activities.
Creditors - correct answer-Those owned money by a business. For example, suppliers and bankers.
Incorporation - correct answer-
Establishing a business as a separate legal entity from its owners, and therefore giving the owners limit
ed liability.
Limited Liability - correct answer-
Owners are not liable for the debts of the business; they can lose no more than the sum they invested.
Monopoly - correct answer-Where the sales of one business have a dominant share of its marketplace.
QUESTIONS WITH VERIFIED ANSWERS
2026
Key issues with different forms of business - correct answer-
Unlimited/ limited liability, Ordinary share capital, Market capitalisation and Dividends.
Budgets - correct answer-Agreed ceiling on the monthly spending by any department or manger.
Corporate Objectives - correct answer-
Targets for the whole business, such as profit to rise by 20% a year for the next 3 years for the whole b
usiness.
Delegated - correct answer-Decision making power is passed down the the hierarchy.
Entrepreneur - correct answer-Person with the initiative and drive to make a business idea happen.
Mission - correct answer-Over riding motivation or purpose of a business
Mission Statement - correct answer-
A short, powerful expressed sentence or two that explains the business aims clearly yet motivationally.
Objectives - correct answer-Targets precise enough to allow praise or blame for the person in charge.
Profit Optimisation - correct answer-
The surplus of revenue over costs should be just right; neither too high in the short term nor too low t
o finance long term success.
Strategy - correct answer-Medium to long term plan for meeting objectives.
Four business functions - correct answer-
Marketing, People (Human Resources), Finance and Operations.
, Reasons businesses exist - correct answer-
Human spirit, a sense of adventure, to lead people to what they can do, and to create income, meet c
onsumer demand.
Set businesses objectives - correct answer-
Managers cannot make every decision. Contributes towards achieving goals. These are reasons for doin
g what?
Benefits of setting objectives - correct answer-
Motivating for managers and for all staff to have a clear goal to aim towards. Also, they are the basis f
or devising a strategy.
Key Business Objectives - correct answer-
Profit Maximisation, Profit Optimisation, Growth, Cash Flow, Survival and Social and Ethical -
these are examples of key what?
Specific Measurable Achievable Realistic Timebound - correct answer-SMART stands for -
write each word
Bankrupt - correct answer-
INDIVIDUAL is unable to meet personal liabilities, some or all of which can be as a consequence of busi
ness activities.
Creditors - correct answer-Those owned money by a business. For example, suppliers and bankers.
Incorporation - correct answer-
Establishing a business as a separate legal entity from its owners, and therefore giving the owners limit
ed liability.
Limited Liability - correct answer-
Owners are not liable for the debts of the business; they can lose no more than the sum they invested.
Monopoly - correct answer-Where the sales of one business have a dominant share of its marketplace.
