BusinessQ&A by dot point

The factors that influence where a business locates (proximity to market, labour, materials and competitors, and cost), the purpose and main contents of a business plan, and how planning supports a new business.

The main forms of business ownership (sole trader, partnership, private limited company, public limited company, not-for-profit), the meaning of limited and unlimited liability, and the advantages and disadvantages of each.

The role of business enterprise and entrepreneurship, the characteristics and objectives of an entrepreneur, the reasons for starting a business, and the risks and rewards involved.

The reasons businesses set aims and objectives, the main types of objective (survival, profit, growth, market share, customer satisfaction, social and ethical aims), and why objectives differ between businesses and change over time.

The main internal and external stakeholders of a business, the different objectives and interests each group has, and how and why stakeholder interests can conflict.

The purpose of business activity, the factors of production, what businesses do (identifying and satisfying needs and wants), the concept of adding value, and the difference between goods and services.

The meaning and importance of good customer service, the methods used to provide it (including after-sales service), the benefits of customer loyalty, and the consequences of poor customer service.

The main methods of production (job, batch and flow production), how each suits different products, the meaning of productivity and efficiency, and the role of technology in production.

The importance of quality to a business, the difference between quality control and quality assurance, the meaning of total quality management, and the benefits and costs of maintaining quality.

The role of procurement and the supply chain, the factors a business considers when choosing a supplier (price, quality, reliability, delivery), the importance of managing stock, and the impact of good and poor supplier relationships.

The main methods of selling (in person, by telephone, online and through self-service), the importance of product knowledge, speed and efficiency of service, and how good selling supports customer loyalty and sales.

How to analyse financial performance using the income statement, gross and net profit, profit margins, and the use of financial data to make decisions and judge success, including the limitations of financial information.

The meaning and importance of cash flow, the difference between cash flow and profit, how to construct and interpret a cash-flow forecast, and the causes and solutions of cash-flow problems.

The key financial terms and calculations: revenue, fixed and variable costs, total costs, profit, the break-even point and margin of safety, and how these figures support business decisions.

The main sources of finance for a business, the difference between short-term and long-term and internal and external sources, and the advantages and disadvantages of each, including the suitability for different situations.

The importance of a motivated workforce, financial methods of motivation (pay, bonuses, commission and fringe benefits) and non-financial methods (job rotation, enrichment, autonomy and praise), and the link between motivation and productivity.

The purpose of organisational structures, the difference between tall and flat structures, key terms (chain of command, span of control, delegation and centralisation), and the impact of structure on communication and motivation.

The difference between internal and external recruitment, the main stages of recruitment and selection, the documents used (job description and person specification), and the advantages and disadvantages of each recruitment method.

The purpose of training, the difference between induction, on-the-job and off-the-job training, the benefits and drawbacks of training to the business and the employee, and the link between development and motivation.

The meaning of business ethics and environmental responsibility, examples of ethical and unethical behaviour, the effect of environmental and ethical considerations on costs, sales and reputation, and the trade-off with profit.

The meaning of globalisation, the reasons it has grown, the opportunities it offers (new markets, cheaper resources, multinationals) and the threats it brings (more competition), and the role of tariffs and trade barriers.

The purpose of legislation affecting business, the main areas of consumer law and employment law, the impact of complying with legislation on costs and decisions, and the consequences of breaking the law.

The main types of technology used in business (e-commerce, digital communication, social media and automation), and the benefits and drawbacks of technology for sales, costs, marketing and the way a business is run.

The effect of the economic climate on business, including unemployment, changing levels of consumer income, inflation, changes in interest rates, government taxation, changes in exchange rates and the impact on costs, sales and profit.

The purpose of market research, the difference between primary and secondary research and between quantitative and qualitative data, the main methods used, and the importance of reliable data.

The meaning and purpose of market segmentation, the main ways a market can be segmented (age, gender, income, location, lifestyle), the idea of a target market, and the benefits of segmentation to a business.

Two elements of the marketing mix (the four Ps): product, including the product life cycle and the Boston Matrix, and price, including the main pricing strategies and the factors that affect price.

Two elements of the marketing mix (the four Ps): promotion, including advertising, sales promotion and digital methods, and place, including the main channels of distribution, and how the four Ps work together as an integrated mix.