BUSINESS- A LEVEL- AQA QUESTIONS
WITH CORRECT ANSWERS 2026
Aim - correct answer-The intention to reach a goal.
Average Rate of Return - correct answer-
The average profit for the year as a percentage of the original investment.
Average rate or return = average return per annum / initial 100
Break-Even Output - correct answer-
The point at which the business' total sales equals the total costs. There is neither profit nor loss.
Buffer Stock - correct answer-
AAstock of raw materials held in reserve to protect the production process from unforeseen shortages.
Cash-Flow Forecast - correct answer-
A financial planning tool that estimates the money coming into and going out the business on a month
to month basis
Centralisation - correct answer-
Maintaining control by keeping authority at the senior levels of the organisation.
Chain of Command - correct answer-
The line through the hierarchy that shows who is responsible for whom from top to bottom of an organ
isation
Channels of Distribution - correct answer-
The route the ownership of the product transfers from the seller to the buyer
Commission - correct answer-
An amount paid to an employee based on a percentage of the employee's sales
, Competitive Pricing - correct answer-
Setting the price of a product so that it is in line with competitors' prices.
Cost-Plus Pricing - correct answer-
Setting the price of a good or service at an amount higher than the cost of producing
Decentralisation - correct answer-Where authority is spread widely through the organisation.
Delayering - correct answer-
The reorganisation of the organisations's employees so that there are fewer levels of management
Delegation - correct answer-Allocating a task to someone who would not normally be responsible for it
Diseconomies of Scale - correct answer-
When a business grows too large, leading o a possible increase in unit cost
Dividend - correct answer-A portion of the after-
tax profit that is paid to shareholders according to the number of shares owned
E-commerce - correct answer-Business transactions carried out electronically on the internet
Economies of Scale - correct answer-The cost advantage or producing on a large scale
Enterprise - correct answer-
The ability to identify business ideas and opportunities to bring them to fruition and to take risks where
appropriate
Exchange Rates - correct answer-The price of one currency based on another
Extension Strategies - correct answer-Methods used to prolong the life of a product
WITH CORRECT ANSWERS 2026
Aim - correct answer-The intention to reach a goal.
Average Rate of Return - correct answer-
The average profit for the year as a percentage of the original investment.
Average rate or return = average return per annum / initial 100
Break-Even Output - correct answer-
The point at which the business' total sales equals the total costs. There is neither profit nor loss.
Buffer Stock - correct answer-
AAstock of raw materials held in reserve to protect the production process from unforeseen shortages.
Cash-Flow Forecast - correct answer-
A financial planning tool that estimates the money coming into and going out the business on a month
to month basis
Centralisation - correct answer-
Maintaining control by keeping authority at the senior levels of the organisation.
Chain of Command - correct answer-
The line through the hierarchy that shows who is responsible for whom from top to bottom of an organ
isation
Channels of Distribution - correct answer-
The route the ownership of the product transfers from the seller to the buyer
Commission - correct answer-
An amount paid to an employee based on a percentage of the employee's sales
, Competitive Pricing - correct answer-
Setting the price of a product so that it is in line with competitors' prices.
Cost-Plus Pricing - correct answer-
Setting the price of a good or service at an amount higher than the cost of producing
Decentralisation - correct answer-Where authority is spread widely through the organisation.
Delayering - correct answer-
The reorganisation of the organisations's employees so that there are fewer levels of management
Delegation - correct answer-Allocating a task to someone who would not normally be responsible for it
Diseconomies of Scale - correct answer-
When a business grows too large, leading o a possible increase in unit cost
Dividend - correct answer-A portion of the after-
tax profit that is paid to shareholders according to the number of shares owned
E-commerce - correct answer-Business transactions carried out electronically on the internet
Economies of Scale - correct answer-The cost advantage or producing on a large scale
Enterprise - correct answer-
The ability to identify business ideas and opportunities to bring them to fruition and to take risks where
appropriate
Exchange Rates - correct answer-The price of one currency based on another
Extension Strategies - correct answer-Methods used to prolong the life of a product
