ED EXCEL LEVEL 1 business as level EXAM
QUESTIONS WITH CORRECT UPDATED
ANSWERS.
(3.5.3) sources of finance
what is debt factoring - CORRECT ANSWERS✔✔Debt factoring is a financial transaction where a business
sells its invoices or accounts receivable to a third party, known as a factoring company, at a discount in
exchange for immediate cash.
3 businesses with seasonal demand - CORRECT ANSWERS✔✔christmas trees
berries
easter eggs
3.1 1 Mission statement - CORRECT ANSWERS✔✔the overall reason for the businesses existence
3.1.2 unlimited liability - CORRECT ANSWERS✔✔each business owner is equally responsible for
whatever debt accrued within a business if the company is unable to repay debt
3.1.3 What is PESTLE - CORRECT ANSWERS✔✔external factors
Political
Environmental
Social
Technology
Legal
Economic
3.2.1 leadership - CORRECT ANSWERS✔✔qualities- have a vision, public speaker, stoic, reliable, liked
,3.2.2 decision making - CORRECT ANSWERS✔✔the main decisions businesses have to make decisions in
pricing, which products to develop and whether to invest in new capacity
3.2.3 stakeholders - CORRECT ANSWERS✔✔a stakeholder is any individual or organisation who has a
vested interest in the activities and decision making of a business
can be internal or external to the business
have varying amounts of power to influence decisions
varying amounts of interest
effective communication and consultation are vital to keep relations
3.3.1+3.3.2a marketing department - CORRECT ANSWERS✔✔in charge of advertising, promotion,
market research, target customer
want to achieve increased sales and profit, good publicity
3.3.2a correlation - CORRECT ANSWERS✔✔relationship between two variables
strong positive-compact, as one increases so does the other
negative strong-compact as one decreases so does the other
no correlation- no relationship
3.3.2b elasticities - CORRECT ANSWERS✔✔measure the strength of a relationship between two
variables
3.3.3 what is STP - CORRECT ANSWERS✔✔segmentation, targeting and positioning
how marketers identify the right customers
3.3.4 marketing mix
what are the 7 Ps - CORRECT ANSWERS✔✔product
price
place
promotion
,physical evidence
process
people
3.3.4b what influences pricing decisions - CORRECT ANSWERS✔✔competition
demand
cost of production
interest rates
fahions/trends
income
3.3.4d how products are distributed - CORRECT ANSWERS✔✔manufacturer -- retailer -- consumer (YPO)
manufacturer -- wholesaler -- retailer -- consumer(crisps)
manufacturer -- consumer (trainers)
manufacturer -- agent -- consumer (a holiday)
3.4.1 what are the operational objectives - CORRECT ANSWERS✔✔low costs
high quality
fast speed of response
flexibility
environmental objectives
added value
3.4.2 labour productivity - CORRECT ANSWERS✔✔output per period/number of employees at work
3.4.3 what is productivity - CORRECT ANSWERS✔✔the quantity of work produced by a business over a
period of time
3.4.4 what would create a good quality product - CORRECT ANSWERS✔✔long lasting
, reliable
durable
innovative
minimal maintenance
flexible
adaptable
3.4.5 what is mass customisation - CORRECT ANSWERS✔✔personalisation or custom-tailoring of goods
and services to meet customer needs but at a near mass production price
e.g cars (BMW), computers
3.5.1 maximising revenue - CORRECT ANSWERS✔✔increase market share
cover costs
increase profits
3.5.2a changes to variable costs - CORRECT ANSWERS✔✔if vc decrease, unit costs decrease, vc and tc
line will become shallower, business will need to sell less for break-even, easier to make a profit
3.5.2b what is a budget - CORRECT ANSWERS✔✔financial plans for the future period
3 types of budget
revenue or earnings budget
expenditure budget
profit budget
3.5.4 what are cash in (receipts) - CORRECT ANSWERS✔✔cash physically entering the business
3.6.1 what is HRM - CORRECT ANSWERS✔✔human resource management
QUESTIONS WITH CORRECT UPDATED
ANSWERS.
(3.5.3) sources of finance
what is debt factoring - CORRECT ANSWERS✔✔Debt factoring is a financial transaction where a business
sells its invoices or accounts receivable to a third party, known as a factoring company, at a discount in
exchange for immediate cash.
3 businesses with seasonal demand - CORRECT ANSWERS✔✔christmas trees
berries
easter eggs
3.1 1 Mission statement - CORRECT ANSWERS✔✔the overall reason for the businesses existence
3.1.2 unlimited liability - CORRECT ANSWERS✔✔each business owner is equally responsible for
whatever debt accrued within a business if the company is unable to repay debt
3.1.3 What is PESTLE - CORRECT ANSWERS✔✔external factors
Political
Environmental
Social
Technology
Legal
Economic
3.2.1 leadership - CORRECT ANSWERS✔✔qualities- have a vision, public speaker, stoic, reliable, liked
,3.2.2 decision making - CORRECT ANSWERS✔✔the main decisions businesses have to make decisions in
pricing, which products to develop and whether to invest in new capacity
3.2.3 stakeholders - CORRECT ANSWERS✔✔a stakeholder is any individual or organisation who has a
vested interest in the activities and decision making of a business
can be internal or external to the business
have varying amounts of power to influence decisions
varying amounts of interest
effective communication and consultation are vital to keep relations
3.3.1+3.3.2a marketing department - CORRECT ANSWERS✔✔in charge of advertising, promotion,
market research, target customer
want to achieve increased sales and profit, good publicity
3.3.2a correlation - CORRECT ANSWERS✔✔relationship between two variables
strong positive-compact, as one increases so does the other
negative strong-compact as one decreases so does the other
no correlation- no relationship
3.3.2b elasticities - CORRECT ANSWERS✔✔measure the strength of a relationship between two
variables
3.3.3 what is STP - CORRECT ANSWERS✔✔segmentation, targeting and positioning
how marketers identify the right customers
3.3.4 marketing mix
what are the 7 Ps - CORRECT ANSWERS✔✔product
price
place
promotion
,physical evidence
process
people
3.3.4b what influences pricing decisions - CORRECT ANSWERS✔✔competition
demand
cost of production
interest rates
fahions/trends
income
3.3.4d how products are distributed - CORRECT ANSWERS✔✔manufacturer -- retailer -- consumer (YPO)
manufacturer -- wholesaler -- retailer -- consumer(crisps)
manufacturer -- consumer (trainers)
manufacturer -- agent -- consumer (a holiday)
3.4.1 what are the operational objectives - CORRECT ANSWERS✔✔low costs
high quality
fast speed of response
flexibility
environmental objectives
added value
3.4.2 labour productivity - CORRECT ANSWERS✔✔output per period/number of employees at work
3.4.3 what is productivity - CORRECT ANSWERS✔✔the quantity of work produced by a business over a
period of time
3.4.4 what would create a good quality product - CORRECT ANSWERS✔✔long lasting
, reliable
durable
innovative
minimal maintenance
flexible
adaptable
3.4.5 what is mass customisation - CORRECT ANSWERS✔✔personalisation or custom-tailoring of goods
and services to meet customer needs but at a near mass production price
e.g cars (BMW), computers
3.5.1 maximising revenue - CORRECT ANSWERS✔✔increase market share
cover costs
increase profits
3.5.2a changes to variable costs - CORRECT ANSWERS✔✔if vc decrease, unit costs decrease, vc and tc
line will become shallower, business will need to sell less for break-even, easier to make a profit
3.5.2b what is a budget - CORRECT ANSWERS✔✔financial plans for the future period
3 types of budget
revenue or earnings budget
expenditure budget
profit budget
3.5.4 what are cash in (receipts) - CORRECT ANSWERS✔✔cash physically entering the business
3.6.1 what is HRM - CORRECT ANSWERS✔✔human resource management
