AQA A LEVEL BUSINESS STUDIES
COMPLETE STUDY GUIDE PRACTICE
QUESTIONS AND ANSWERS
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales Included
,Blake Mouton Grid An analytical tool to assess leadership style based on the level of interest in the
people or task
Boston Matrix Analyses all of the firm's products in terms of their market share and the growth of
the market
Bowman's strategic clock Shows positioning strategies based on different combinations of price and
perceived added value
break-even analysis a method of determining what sales volume must be reached before total
revenue equals total costs
Budget A plan for making and spending money
Capacity utilisation The proportion of total capacity that is used (expressed as a percentage)
Capital a company's wealth in the form of money or property
capital expenditures Money used to buy fixed assets
Carroll's Pyramid of CSR A diagram showing four elements of CSR as layers in a pyramid
cashflow (n) the movement of money into and out of a business as goods are bought and
sold
Centralization decision authority is located near the top of the organization
channel of distribution a pathway to direct products to consumers
competitive advantage providing greater value for customers than competitors can
confidence interval A range in which you can say, with a certain level of confidence, that a value lies
Confidence level The probability that the research findings are correct
,Consumer Price Index an index of the cost of all goods and services to a typical consumer
contingency plan plan for unexpected problems
contribution the difference between selling price and variable cost
core competencies A unique feature of a business that gives it a competitive advantage
Corporate objectives Objectives that relate to the business as a whole. Usually set by top management.
CSR (corporate social responsibility) A company's contribution to society
Correlation A measure of the relationship between two variables
cost-push inflation rising prices as a result of rising production costs
Creditors Someone who a business owes money to
Critical path The sequence of activities in a project that is expected to take the longest to
complete
Current Ratio A liquidity ratio that compares current assets to current liabilities
Debt Capital The capital raised by borrowing
Debtors People who owe money to the business
Decentralization A way to structure a business where decisions are shared across the company
Decision Trees Provides an example of scientific decision making and involves expected
outcomes and net gains
Delayering Reducing the number of levels in the hierarchy of an organisation
, demand-pull inflation higher prices as a result of consumers wanting to buy more goods and services
than producers supply
Demographic change Changes in population statistics over time
Depreciation A decrease or loss in value
developed country a wealthy country with an advanced economy HIGH GDP
developing country A country that has low industrial production and little modern technology LOW
GDP
Dimensions of National culture A model used to compare the differences in cultural values between different
countries
Director A person responsible for running a company
Discrimination Behaving differently, usually unfairly, toward the members of a group.
Diversification Selling new products to new markets
Earliest start time The earliest time an activity may begin
Economic growth The rate of increase in GDP
economies of scale factors that cause a producer's average cost per unit to fall as output rises
economies of scope the ability to use one resource to provide many different products and services
elasticity of demand a measure of how consumers react to a change in price
Elkington's Triple Bottom Line Highlights that businesses may have different objectives, not just for profit, but
planet and people
Embargo A ban on trade with particular countries
COMPLETE STUDY GUIDE PRACTICE
QUESTIONS AND ANSWERS
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales Included
,Blake Mouton Grid An analytical tool to assess leadership style based on the level of interest in the
people or task
Boston Matrix Analyses all of the firm's products in terms of their market share and the growth of
the market
Bowman's strategic clock Shows positioning strategies based on different combinations of price and
perceived added value
break-even analysis a method of determining what sales volume must be reached before total
revenue equals total costs
Budget A plan for making and spending money
Capacity utilisation The proportion of total capacity that is used (expressed as a percentage)
Capital a company's wealth in the form of money or property
capital expenditures Money used to buy fixed assets
Carroll's Pyramid of CSR A diagram showing four elements of CSR as layers in a pyramid
cashflow (n) the movement of money into and out of a business as goods are bought and
sold
Centralization decision authority is located near the top of the organization
channel of distribution a pathway to direct products to consumers
competitive advantage providing greater value for customers than competitors can
confidence interval A range in which you can say, with a certain level of confidence, that a value lies
Confidence level The probability that the research findings are correct
,Consumer Price Index an index of the cost of all goods and services to a typical consumer
contingency plan plan for unexpected problems
contribution the difference between selling price and variable cost
core competencies A unique feature of a business that gives it a competitive advantage
Corporate objectives Objectives that relate to the business as a whole. Usually set by top management.
CSR (corporate social responsibility) A company's contribution to society
Correlation A measure of the relationship between two variables
cost-push inflation rising prices as a result of rising production costs
Creditors Someone who a business owes money to
Critical path The sequence of activities in a project that is expected to take the longest to
complete
Current Ratio A liquidity ratio that compares current assets to current liabilities
Debt Capital The capital raised by borrowing
Debtors People who owe money to the business
Decentralization A way to structure a business where decisions are shared across the company
Decision Trees Provides an example of scientific decision making and involves expected
outcomes and net gains
Delayering Reducing the number of levels in the hierarchy of an organisation
, demand-pull inflation higher prices as a result of consumers wanting to buy more goods and services
than producers supply
Demographic change Changes in population statistics over time
Depreciation A decrease or loss in value
developed country a wealthy country with an advanced economy HIGH GDP
developing country A country that has low industrial production and little modern technology LOW
GDP
Dimensions of National culture A model used to compare the differences in cultural values between different
countries
Director A person responsible for running a company
Discrimination Behaving differently, usually unfairly, toward the members of a group.
Diversification Selling new products to new markets
Earliest start time The earliest time an activity may begin
Economic growth The rate of increase in GDP
economies of scale factors that cause a producer's average cost per unit to fall as output rises
economies of scope the ability to use one resource to provide many different products and services
elasticity of demand a measure of how consumers react to a change in price
Elkington's Triple Bottom Line Highlights that businesses may have different objectives, not just for profit, but
planet and people
Embargo A ban on trade with particular countries
