Business StudiesQ&A by dot point

Fixed, variable and total costs, contribution, the calculation and interpretation of the break-even point, the margin of safety, break-even charts and the strengths and limitations of break-even analysis.

The purpose and use of budgets and variance analysis, the structure of the income statement and the statement of financial position, and the difference between gross and net profit.

The methods of business growth through internal (organic) and external (integration) means, the types of integration, economies and diseconomies of scale, and the reasons some firms choose to remain small.

The meaning and importance of cash flow, the construction and interpretation of a cash flow forecast, the causes of cash flow problems, working capital, and methods of improving cash flow.

Workforce planning, recruitment and selection, internal and external recruitment, training and development, and how organisational structure is shaped by hierarchy, span of control and delegation.

Theories of motivation including Taylor, Maslow, Herzberg and McGregor, financial and non-financial methods of motivation, and styles of leadership and their effect on the workforce.

Internal and external sources of finance, short-term and long-term finance, and the factors a business considers when choosing the most appropriate source.

The nature and purpose of business activity, the transformation of inputs into outputs, adding value, the factors of production, and the role of the entrepreneur in bearing risk and seizing opportunity.

The aims, mission and objectives of a business, the use of SMART objectives, how objectives differ between the private, public and not-for-profit sectors, and how objectives change over the life of a business.

The role of marketing, market research using primary and secondary methods, sampling, market segmentation and targeting, and the difference between market-led and product-led approaches.

Methods of production, the meaning and measurement of productivity, stock control including just-in-time, and approaches to quality including quality control, quality assurance and total quality management.

The internal and external stakeholders of a business, their differing objectives and the conflicts that arise between them, and how a business manages competing stakeholder interests.

The marketing mix of product, price, place and promotion, the product life cycle and extension strategies, the Boston Matrix, pricing and promotional methods, and the use of e-commerce and digital channels.

The main forms of business organisation in the private and public sectors, including sole traders, partnerships, private and public limited companies, franchises, social enterprises and not-for-profit organisations, and the meaning of limited and unlimited liability.

The purpose and content of a business plan, the role of corporate (business) planning, contingency planning and crisis management, and how risk and change are managed strategically.

Quantitative decision-making techniques, including decision trees with expected values and critical path analysis (network analysis), how they are constructed and interpreted, and their strengths and limitations.

The methods of investment appraisal, including the payback period, the average rate of return and net present value using discounted cash flow, and the strengths and limitations of each as a basis for investment decisions.

The use of accounting ratios to analyse performance, including profitability, liquidity, efficiency and gearing ratios, their calculation and interpretation, and the limitations of ratio analysis.

The nature of strategy and the difference between strategic and tactical decisions, SWOT and PEST analysis, Ansoff's matrix of growth strategies, and the process of strategic planning.

The meaning and causes of globalisation, the role of multinational corporations, the opportunities and threats of international trade, and the reasons for and against operating in international markets.

The effect of legislation and regulation on business, including consumer protection, employment, health and safety and competition law, and the impact of complying with the legal and regulatory environment.

Corporate social responsibility and business ethics, the meaning of sustainability and the environmental impact of business, and the tension between profit and wider social and environmental responsibilities.

The nature of competition and market structures, the sources and benefits of competitive advantage, the effect of the degree of competition on price, output and behaviour, and how a business responds to competitors.

The effect of the business cycle, economic growth, inflation, unemployment, interest rates and exchange rates on business, and how government fiscal and monetary policy influences business activity.