.

• What is the primary purpose of business?

  To produce goods/services and generate profit
• What are the main objectives of a business?

  Survival, profit maximisation, growth, market share
• How is revenue calculated?

  Revenue = Selling Price × Quantity Sold
• What is the formula for total costs?

  Total Costs = Fixed Costs + Variable Costs
• How is profit calculated?

  Profit = Revenue – Total Costs
• What are the types of business structures?

  Sole trader, Ltd, Plc, non-profits, public sector
• What does limited liability mean?

  Owners’ liability is capped (Ltd/Plc)
• What does unlimited liability mean?

  Owner is personally liable (sole traders)
• How is market capitalisation calculated?

  Market Capitalisation = Share Price × Number of Shares
• What are the pros and cons of business objectives?

  Pros:

  • Provides direction and focus
  • Motivates employees
  • Helps measure performance

  
  

  Cons:

  • Conflicting objectives
  • May become outdated
  • Hard to quantify non-financial objectives
• What are the pros and cons of having a mission statement?

  Pros:

  • Provides vision and purpose
  • Breaks down mission into targets

  
  

  Cons:

  • Can be vague
  • May be ignored in operations
• What are the pros and cons of focusing on profit and revenue?

  Pros:

  • Key to long-term survival
  • Helps pricing and marketing decisions

  
  

  Cons:

  • May ignore ethics or loyalty
  • Profit doesn’t always mean good cash flow
• What are the pros and cons of limited liability?

  Pros:

  • Personal assets protected
  • Encourages investment

  
  

  Cons:

  • More regulation required
  • Harder to access finance for small Ltds
• What are the pros and cons of different business forms?

  Sole Trader:

  • Pros: Easy setup, full control
  • Cons: Unlimited liability, hard to raise finance

  
  

  Private Ltd (Ltd):

  • Pros: Limited liability, control within family
  • Cons: Cannot sell shares publicly

  
  

  Public Ltd (Plc):

  • Pros: Raise large capital, high profile
  • Cons: Risk of takeover, more regulation

  
  

  Non-Profit/Charity:

  • Pros: Public trust, tax advantages
  • Cons: Funding dependent on donations
• What are the pros and cons of shares and market capitalisation?

  Pros:

  • Large capital raised
  • Share price indicates value

  
  

  Cons:

  • Pressure for short-term performance
  • Vulnerability to market volatility
• What are the pros and cons of revenue and demand?

  Pros:

  • Assesses pricing strategy
  • Useful for forecasting

  
  

  Cons:

  • Demand can be unstable
  • Revenue doesn’t account for costs
• What are the key roles of managers?

  Plan, organise, and coordinate
• How do managers differ from leaders?

  Managers coordinate; leaders inspire and motivate
• What are the leadership styles?

  Autocratic, democratic, laissez-faire, paternalistic
• What is scientific decision-making?

  Based on intuition or data
• What are the pros and cons of the roles of managers?

  Pros:

  • Ensures efficient operations
  • Bridges strategy and workforce
  • Implements corporate objectives

  
  

  Cons:

  • Poor management can demotivate
  • Resistance to change
  • Focus on short-term tasks
• What are the pros and cons of the Tannenbaum-Schmidt Continuum?

  Pros:

  • Flexible model of leadership behaviours
  • Encourages employee input

  
  

  Cons:

  • Doesn’t suggest suitable styles
  • Oversimplifies leadership dynamics
• What are the pros and cons of different leadership styles?

  Autocratic:

  • Pros: Quick decisions
  • Cons: Demotivating

  
  

  Democratic:

  • Pros: Encourages participation
  • Cons: Slower decisions

  
  

  Laissez-Faire:

  • Pros: Good for creative teams
  • Cons: Lack of direction

  
  

  Paternalistic:

  • Pros: Builds loyalty
  • Cons: Can be patronising
• What are the pros and cons of effective leadership styles?

  Pros:

  • Boosts morale and productivity
  • Adapting style = situational leadership

  
  

  Cons:

  • Wrong style can damage performance
  • Hard to balance control and empowerment
• What are the pros and cons of scientific decision-making?

  Pros:

  • Reduces risk with evidence
  • Justifies decisions to stakeholders

  
  

  Cons:

  • Data may be incomplete
  • Time-consuming and costly
  • Ignores creativity
• What are the pros and cons of risks, rewards, uncertainty, and opportunity cost?

  Pros:

  • Encourages calculated decision-making
  • Opportunity cost compares trade-offs

  
  

  Cons:

  • Risk aversion can prevent innovation
  • Hard to measure uncertainty
• What are the pros and cons of decision trees?

  Pros:

  • Visual layout of options
  • Includes probabilities and expected values

  
  

  Cons:

  • Subjective probabilities
  • Ignores qualitative factors
• What are the pros and cons of influences on decision-making?

  Pros:

  • Considers stakeholder needs
  • More informed decisions

  
  

  Cons:

  • May delay decision-making
  • Conflicting influences create tension
• What are the pros and cons of stakeholder mapping?

  Pros:

  • Identifies key influencers
  • Prioritises stakeholder engagement

  
  

  Cons:

  • Power/interest may change
  • Difficult to please all stakeholders
• What is the main focus of marketing?

  Identifying, anticipating, and satisfying customer needs
• What are the key components of marketing?

  Objectives, data, market analysis, pricing
• What are the pros and cons of marketing objectives?

  Pros:

  • Clear direction for marketing
  • Measures success and ROI
  • Aligns with business goals

  
  

  Cons:

  • May be unrealistic
  • External changes can derail them
• What are the pros and cons of influences on marketing objectives?

  Pros:

  • Improves realism
  • Better alignment across departments

  
  

  Cons:

  • Can restrict innovation
  • Too many influences may cause indecisiveness
• What are the pros and cons of marketing research?

  Pros:

  • Reduces uncertainty
  • Tailors products to needs
  • Primary = specific; secondary = fast

  
  

  Cons:

  • Primary = time-consuming
  • Secondary = may be outdated
  • Sampling may not reflect population
• What are the pros and cons of market size, growth, and share?

  Pros:

  • Assesses potential and performance
  • Aids investment decisions

  
  

  Cons:

  • Market definitions may be vague
  • Past growth doesn’t guarantee success
• What are the pros and cons of correlation and confidence intervals?

  Pros:

  • Identifies trends and relationships
  • Confidence intervals show reliability

  
  

  Cons:

  • Correlation ≠ causation
  • Misinterpreted statistics can lead to bad decisions
• What are the pros and cons of extrapolation?

  Pros:

  • Simple and low-cost forecasting
  • Useful when trends are stable

  
  

  Cons:

  • Assumes past trends continue
  • Unreliable in volatile markets
• What are the pros and cons of price elasticity of demand (PED)?

  Pros:

  • Helps set pricing strategy
  • Useful for forecasting revenue

  
  

  Cons:

  • PED varies by market
  • Requires accurate data
• What are the pros and cons of income elasticity of demand (YED)?

  Pros:

  • Useful for targeting income groups
  • Predicts demand changes during cycles

  
  

  Cons:

  • Difficult to estimate accurately
  • Ignores brand loyalty
• What are the pros and cons of using data and technology in marketing?

  Pros:

  • Improves targeting and efficiency
  • Enables personalised campaigns

  
  

  Cons:

  • Data privacy concerns
  • High initial investment