AQA A-LEVEL BUSINESS

• What are common business objectives?

  ProfitGrowthSurvivalCash flowSocial Ethical
• Objectives should be "SMART". What does this mean?

  They should be:SpecificMeasurableAgreedRealisticTime 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 traderPLCLTD
• 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