AQA A level Business - Unit 1 All Answers Correct

AQA A level Business - Unit 1 All Answers Correct Key issues with different forms of business Market capitalisation and Dividends. Budgets Unlimited/ limited liability, Ordinary share capital, Agreed ceiling on the monthly spending by any department or manger. Corporate Objectives Targets for the whole business, such as profit to rise by 20% a year for the next 3 years for the whole business. Delegated Entrepreneur Mission Decision making power is passed down the the hierarchy. Person with the initiative and drive to make a business idea happen. Over riding motivation or purpose of a business Mission Statement A short, powerful expressed sentence or two that explains the business aims clearly yet motivationally. Objectives Targets precise enough to allow praise or blame for the person in charge. Profit Optimisation The surplus of revenue over costs should be just right; neither too high in the short term nor too low to finance long term success. Strategy Medium to long term plan for meeting objectives. Four business functions Reasons businesses exist Marketing, People (Human Resources), Finance and Operations. Human spirit, a sense of adventure, to lead people to what they can do, and to create income, meet consumer demand. Set businesses objectives Managers cannot make every decision. Contributes towards achieving goals. These are reasons for doing what? Benefits of setting objectives Motivating for managers and for all staff to have a clear goal to aim towards. Also, they are the basis for devising a strategy. Key Business Objectives Profit Maximisation, Profit Optimisation, Growth, Cash Flow, Survival and Social and Ethical - these are examples of key what? Specific Measurable Achievable Realistic Timebound Bankrupt SMART stands for - write each word INDIVIDUAL is unable to meet personal liabilities, some or all of which can be as a consequence of business activities. Creditors Those owned money by a business. For example, suppliers and bankers. Incorporation Establishing a business as a separate legal entity from its owners, and therefore giving the owners limited liability. Limited Liability Owners are not liable for the debts of the business; they can lose no more than the sum they invested. Monopoly Where the sales of one business have a dominant share of its marketplace. Registrar of Companies Sole Trader Government department where firms register to be incorporated. Business owned by one person with unlimited liability. Unlimited Liability Owners are liable for any debts incurred by the business, requires them to sell their personal assets and possessions and become personally bankrupt. Limited Liability ADV 1. Owners may feel more secure in taking business risks e.g. expanding business; 2. Owners can sell shares to raise finance = advantages of which type of ownership? disadvantages of limited liability Have to: follow more rules, make financial information available publicly, consider share holder opinion. Private Limited Company Low start up capital, can be wholly owned by the entrepreneur, or investors. Shares cannot be bought and sold without agreement, cannot be listed on stock mar