BusinessQ&A by dot point

Business aims and objectives: financial and non-financial aims (survival, profit, growth, market share, social and ethical aims), why objectives differ between businesses, and how objectives change over time.

Business growth: internal (organic) and external growth, methods of external growth (merger and takeover), the reasons for and benefits of growth including economies of scale, and the drawbacks and risks of growth.

Types of business ownership: the features, advantages and disadvantages of sole traders, partnerships, private limited companies (Ltd) and public limited companies (plc), limited and unlimited liability, and the public and not-for-profit sectors.

Business location and planning: the factors that influence where a business locates, and the purpose, contents and benefits of a business plan including a sales forecast and cash flow forecast.

Enterprise and entrepreneurship: the role and characteristics of an entrepreneur, the rewards and risks of starting a business, the reasons businesses start up, and the purpose and contents of a business plan.

Stakeholders: the main internal and external stakeholders of a business, their differing objectives, how business activity affects them, and how their objectives can conflict.

The purpose of business activity: the dynamic nature of business, the transformation of inputs into outputs to meet customer needs and wants, the factors of production, and added value.

Customer service and the sales process: the importance of good customer service, methods of providing it, the sales process and after-sales service, and the benefits of customer loyalty.

Production methods: job, batch and flow production, their features, advantages and disadvantages, the role of operations in meeting customer needs, and the meaning of productivity and efficiency.

Quality: the importance of quality to a business, the difference between quality control and quality assurance, methods of maintaining quality, and the costs and benefits of quality systems.

Technology in operations: the use of technology in production and operations (automation, robotics, stock management systems and design software), and its effects on productivity, costs, quality and jobs.

The supply chain and procurement: the meaning of the supply chain, procurement and choosing suppliers, the importance of good supplier relationships, stock control and the just-in-time and just-in-case approaches.

Break-even analysis: the concept of break-even, contribution, the calculation of break-even output, the margin of safety, interpreting a break-even chart, and the usefulness and limitations of break-even analysis.

Cash and cash flow: the meaning of cash flow, the cash flow forecast, the calculation of net cash flow and opening and closing balances, the causes and effects of cash flow problems, and how to improve cash flow.

Measuring financial performance: the calculation and interpretation of gross profit margin and net profit margin, the use of profit margins to judge performance, and the average rate of return as a method of investment appraisal.

Revenue, costs, profit and loss: the calculation of revenue, fixed, variable and total costs, profit and loss, the importance of profit, and the difference between gross and net profit.

Sources of finance: internal and external sources, short-term and long-term finance, the features of each source, and how to choose the most appropriate source for a given purpose.

The role and purpose of finance: what the finance function does, the importance of finance to a business, the difference between cash and profit, and the consequences of poor financial management.

Communication and employment: methods of internal communication, the importance and barriers to good communication, and the key rights of employees under employment law.

Motivation: the importance of a motivated workforce, financial methods of motivation (pay, bonuses, commission) and non-financial methods (job rotation, enrichment, responsibility, praise), and the effects of motivation on the business.

Organisational structure: hierarchical and flat structures, the chain of command, span of control, levels of hierarchy, delegation, and the effects of structure on communication and motivation.

Recruitment and selection: internal and external recruitment, the recruitment process and documents, methods of selection, and the costs and benefits of different recruitment methods.

Training and development: induction, on-the-job and off-the-job training, the purpose and benefits of training, the costs of training, and the importance of staff development.

Ethical and environmental considerations: the meaning of business ethics, ethical and unethical practice, the environmental impact of business activity and sustainability, and the costs and benefits of acting ethically and sustainably.

Globalisation and international trade: the meaning of globalisation, imports and exports, the opportunities and threats globalisation brings, the role of multinationals, and how businesses respond to international competition.

The legal environment: the main areas of legislation affecting business (consumer protection, employment and health and safety), the purpose of each, and the impact of legislation on business costs and decisions.

The role of technology: how technology (e-commerce, digital communication, automation and social media) affects business operations, marketing and costs, and the benefits and drawbacks of adopting new technology.

The economic climate: the effect of changing consumer income and unemployment, interest rates, inflation and exchange rates on businesses, and how a business is affected by and responds to changes in the economic climate.

Digital marketing and e-commerce: e-commerce and m-commerce, social media and digital promotion, the benefits and drawbacks of digital marketing, and the impact of technology on the marketing mix.

Market research: primary and secondary research, quantitative and qualitative data, methods of collecting data, the use of market research, and sample size and reliability.

Market segmentation and targeting: the meaning of market segmentation, the main bases for segmenting a market, the benefits of targeting a market segment, and the role of a target market.

The marketing mix: the four Ps (product, price, promotion and place), pricing strategies, methods of promotion, channels of distribution, and how the elements of the mix work together.

The role of marketing: the purpose of marketing, identifying and meeting customer needs, the relationship between marketing and the rest of the business, and the importance of a competitive advantage and a USP.