AQA A-LEVEL BUSINESS 2023 with complete solution questions and answers

What are common business objectives? Profit Growth Survival Cash flow Social Ethical Objectives should be "SMART". What does this mean? They should be: Specific Measurable Agreed Realistic Time related What is a mission statement? A brief written statement about the purpose of a company or organisation What are corporate aims? Long term plans to fulfil the mission statement What are corporate objectives? Medium to long term quantifiable targets to achieve the mission statement What is a corporate strategy? Actions tken by a business to achieve the strategy What are tactics? Day to day actions to support the strategy Why set objectives? -common sense of purpose -motivate employees -create reward systems -measure and review performance -Inform decisions to improve performance How is revenue calculated? Selling price x quantity sold How is total costs calculated? Fixed costs + variable costs On a graph, how is total costs shown? Start at the fixed costs point and slope upwards depending on variable costs What will businesses with a profit objective aim to do? -Increase sales revenue -Reduce expenditure What are the different business forms? Sole trader PLC LTD What is a sole trader? Someone who owns and runs his own business. His profit is taxable through income tax What are the benefits of being a sole trader? - Cheap and easy to set up - All profits go to the sole trader - Autonomy in decision making - Motivation is high as the success of the business and the individual is one and he same What are the drawbacks of being a sole trader? - Unlimited liability - Limited capital for investment - Little specialist skills - Difficult to find cover when ill