AQA A-Level Business Paper 1 Revision
Questions With Verified Answers Solutions
Lattest Update {Graded A+}
-Why businesses existANS>> Can make you money and you can be your own boss
-MissionANS>> a business aim expressed to make it seem especially purposeful and motivating
-ObjectivesANS>> SMART Specific, Measurable, Achievable, Realistic, Time-bound
-Why businesses set objectivesANS>> - it is motivating to have a goal to aim toward
- as a boss you can not make every decision
-ProfitANS>> Revenue - total costs
-What are the 5 types of businessANS>> -sole traders
-private limited companies (LTD)
-Public limited companies (PLC)
-Private and public sector organisations
- non-profit organisations (charities)
-Sole tradersANS>> a business that is owned and operated by one person
,-Private Limited Company (Ltd)ANS>> A small to medium sized company, owned by shareholders who
have limited liability. The company cannot sell its shares to the general public.
-Private Limited Company AdvantagesANS>> -Limited liability
-Additional capital can be raised by selling shares (not to the general public)
-Separate legal existence to the owner
-Higher business status to sole trader
-Private limited company DisadvantagesANS>> -You have to publish the account information
-You need two share of £1 each
-Public limited company (plc)ANS>> A limited company with more that £50,000 of share capital. Any
member of the public can buy shares. Public companies must publish more detailed accounts
-Public limited company AdvantagesANS>> -Raising capital through public issue of shares
-Offering shares to the public spreads risk
-Banks are more likely to lend money to PLC's
-More growth and expansion opportunities
-Having PLC at the end of your business name gives a better image
-Shares are more easily transferred so shareholders are happier
-Separate legal entity to the owner
-public limited company DisadvantagesANS>> -More regulations that could increase costs
-Higher level of transparency needed
-Must start with £50,000 share capital
,-Private sector organisationsANS>> Organisations owned by individuals or companies
-Public sector organisationsANS>> Businesses owned by the government.
-Non-profit organisationsANS>> Businesses with a motive other than profit, may be to provide a social
benefit or service to society or to support a cause.
-Share capitalANS>> The total value of capital raised from shareholders by the issue of shares
-Role of ShareholdersANS>> to raise important issues with the board directors and raise funds
-Why shareholders investANS>> -Annual dividend payments
-A rise in the value of shares
-Market capitalisationANS>> Number of issued shares x current share price
-Influences on the price of sharesANS>> -The profit after tax of the company x the value investors place
on on those earnings
-Significance of share price changesANS>> High = cheap and easy to obtain more share capital
Low = unlikely to raise any extra share capital
-What are the 6 external factors affecting businessesANS>> -Market conditions
-Competition
-Changes in household incomes
-Changes in interest rates
, -Demographic factors
-Environmental issues
-Market ConditionsANS>> -The number of competitors in a particular market
-The intensity of competitiveness
-Total market available
-The rate at which the market is growing
-CompetitionANS>> The tighter the economic and market conditions, the greater the competitive
pressures tend to be
-Factors that effect household incomesANS>> -Changes in the real income of the main income earner
-The number of people in the household that work
-The impact of government decisions on taxation and benefits
-Changes in interest ratesANS>> If interest rates go up, businesses and individuals spend less. If interest
rates go down, businesses and individuals spend more.
-Demographic factorsANS>> -Population size
-Age
-Gender
-Ethnicity
-Environmental issues and fair-tradeANS>> Concern for green issues and ethical issues involved with
business.
Questions With Verified Answers Solutions
Lattest Update {Graded A+}
-Why businesses existANS>> Can make you money and you can be your own boss
-MissionANS>> a business aim expressed to make it seem especially purposeful and motivating
-ObjectivesANS>> SMART Specific, Measurable, Achievable, Realistic, Time-bound
-Why businesses set objectivesANS>> - it is motivating to have a goal to aim toward
- as a boss you can not make every decision
-ProfitANS>> Revenue - total costs
-What are the 5 types of businessANS>> -sole traders
-private limited companies (LTD)
-Public limited companies (PLC)
-Private and public sector organisations
- non-profit organisations (charities)
-Sole tradersANS>> a business that is owned and operated by one person
,-Private Limited Company (Ltd)ANS>> A small to medium sized company, owned by shareholders who
have limited liability. The company cannot sell its shares to the general public.
-Private Limited Company AdvantagesANS>> -Limited liability
-Additional capital can be raised by selling shares (not to the general public)
-Separate legal existence to the owner
-Higher business status to sole trader
-Private limited company DisadvantagesANS>> -You have to publish the account information
-You need two share of £1 each
-Public limited company (plc)ANS>> A limited company with more that £50,000 of share capital. Any
member of the public can buy shares. Public companies must publish more detailed accounts
-Public limited company AdvantagesANS>> -Raising capital through public issue of shares
-Offering shares to the public spreads risk
-Banks are more likely to lend money to PLC's
-More growth and expansion opportunities
-Having PLC at the end of your business name gives a better image
-Shares are more easily transferred so shareholders are happier
-Separate legal entity to the owner
-public limited company DisadvantagesANS>> -More regulations that could increase costs
-Higher level of transparency needed
-Must start with £50,000 share capital
,-Private sector organisationsANS>> Organisations owned by individuals or companies
-Public sector organisationsANS>> Businesses owned by the government.
-Non-profit organisationsANS>> Businesses with a motive other than profit, may be to provide a social
benefit or service to society or to support a cause.
-Share capitalANS>> The total value of capital raised from shareholders by the issue of shares
-Role of ShareholdersANS>> to raise important issues with the board directors and raise funds
-Why shareholders investANS>> -Annual dividend payments
-A rise in the value of shares
-Market capitalisationANS>> Number of issued shares x current share price
-Influences on the price of sharesANS>> -The profit after tax of the company x the value investors place
on on those earnings
-Significance of share price changesANS>> High = cheap and easy to obtain more share capital
Low = unlikely to raise any extra share capital
-What are the 6 external factors affecting businessesANS>> -Market conditions
-Competition
-Changes in household incomes
-Changes in interest rates
, -Demographic factors
-Environmental issues
-Market ConditionsANS>> -The number of competitors in a particular market
-The intensity of competitiveness
-Total market available
-The rate at which the market is growing
-CompetitionANS>> The tighter the economic and market conditions, the greater the competitive
pressures tend to be
-Factors that effect household incomesANS>> -Changes in the real income of the main income earner
-The number of people in the household that work
-The impact of government decisions on taxation and benefits
-Changes in interest ratesANS>> If interest rates go up, businesses and individuals spend less. If interest
rates go down, businesses and individuals spend more.
-Demographic factorsANS>> -Population size
-Age
-Gender
-Ethnicity
-Environmental issues and fair-tradeANS>> Concern for green issues and ethical issues involved with
business.
