AQA A-Level Business Paper
1Questions And Answers
revenue ANSWERS Value of products sold
Other names for Revenue ANSWERS Turnover, Sales
fixed costs ANSWERS Costs that do not vary with the quantity produced
Variable Costs ANSWERS costs that vary with the quantity of output
produced
Sole trader ANSWERS A business owned and controlled by a single person
Sole Trader Advatages ANSWERS Keeps all of the profits
Complete control over the business
Quicker, easier and cheaper to start
Sole Trader Disadvantages ANSWERS Unlimited liability
Massive workload
No non repayable sources of fiance
privat limited company ANSWERS A business owned by 2 or more
shareholder, controlled by appointed directors
Ltd (advantages) ANSWERS Limited Liability
Additional Capital can be raised by issuing shares
Ltd (disadvantages) ANSWERS Profits must be shared
original owner loses control if they own less than 50%
Slower and more expensive to set up
PLC ANSWERS Owned by a large number of shareholders but controlled by
directors.
, Plc (advantages) ANSWERS Large amount of capital raised by issuing shares
Extra capital can be used to expand business
Plc (disadvantages) ANSWERS Profits have to be shared with large number
of shareholder
Original owners probably lose control
Higher costs and more paper work for auditing and submitting accounts.
Market Capitalisation ANSWERS The value of a company by the stock
market
Public sector ANSWERS Organisation owned by the state and run by the
goverment
Private sector ANSWERS Organisations are no owned by the state
Privatisation ANSWERS Selling organisations from public to private sector
External Factors ANSWERS Competitions, Market Conditions, Incomes, Instr
est Rates, Demographic factors, Environmental Issues, Fair Trade, Legal and
political Factors
Competition(Affect Demand) ANSWERS New or stronger Increase or
decrease demand in product
A competitor going out of business or performing badly
Market Conditions(Affect Demand) ANSWERS Growing markets increase
Demand
Declining market should decrease demand for your products
Incomes(Affect Demand) ANSWERS Increasing levels of income increase
demand for 'Normal products'
Decreasing income increase demand for 'inferior Good'
Wages not keeping up with inflation decrease demand
Interest Rates(affect Demand) ANSWERS High interest rates income
decrease demands for most spending as more people save
Demographic(Affect Demand) ANSWERS Growing population increase
demand
1Questions And Answers
revenue ANSWERS Value of products sold
Other names for Revenue ANSWERS Turnover, Sales
fixed costs ANSWERS Costs that do not vary with the quantity produced
Variable Costs ANSWERS costs that vary with the quantity of output
produced
Sole trader ANSWERS A business owned and controlled by a single person
Sole Trader Advatages ANSWERS Keeps all of the profits
Complete control over the business
Quicker, easier and cheaper to start
Sole Trader Disadvantages ANSWERS Unlimited liability
Massive workload
No non repayable sources of fiance
privat limited company ANSWERS A business owned by 2 or more
shareholder, controlled by appointed directors
Ltd (advantages) ANSWERS Limited Liability
Additional Capital can be raised by issuing shares
Ltd (disadvantages) ANSWERS Profits must be shared
original owner loses control if they own less than 50%
Slower and more expensive to set up
PLC ANSWERS Owned by a large number of shareholders but controlled by
directors.
, Plc (advantages) ANSWERS Large amount of capital raised by issuing shares
Extra capital can be used to expand business
Plc (disadvantages) ANSWERS Profits have to be shared with large number
of shareholder
Original owners probably lose control
Higher costs and more paper work for auditing and submitting accounts.
Market Capitalisation ANSWERS The value of a company by the stock
market
Public sector ANSWERS Organisation owned by the state and run by the
goverment
Private sector ANSWERS Organisations are no owned by the state
Privatisation ANSWERS Selling organisations from public to private sector
External Factors ANSWERS Competitions, Market Conditions, Incomes, Instr
est Rates, Demographic factors, Environmental Issues, Fair Trade, Legal and
political Factors
Competition(Affect Demand) ANSWERS New or stronger Increase or
decrease demand in product
A competitor going out of business or performing badly
Market Conditions(Affect Demand) ANSWERS Growing markets increase
Demand
Declining market should decrease demand for your products
Incomes(Affect Demand) ANSWERS Increasing levels of income increase
demand for 'Normal products'
Decreasing income increase demand for 'inferior Good'
Wages not keeping up with inflation decrease demand
Interest Rates(affect Demand) ANSWERS High interest rates income
decrease demands for most spending as more people save
Demographic(Affect Demand) ANSWERS Growing population increase
demand
