BusinessQ&A by dot point

Business aims and objectives: the difference between aims and objectives, financial and non-financial objectives, why objectives differ between businesses and change over time, and the use of SMART objectives.

Business growth: the difference between internal (organic) and external (inorganic) growth, methods of growth including mergers and takeovers, the benefits and drawbacks of growth, economies of scale, and reasons some businesses remain small.

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

Business planning: the purpose and content of a business plan, the benefits and drawbacks of planning, and how a plan supports raising finance and reducing risk.

Stakeholders in business: the main internal and external stakeholders, their objectives and influence, how stakeholder interests can conflict, and how businesses manage these relationships.

The role of business enterprise and entrepreneurship: the purpose of business activity, the role of the entrepreneur, the characteristics and skills of entrepreneurs, the concept of risk and reward, and why businesses add value to bought-in goods and services.

Average rate of return: the purpose of investment appraisal, the calculation of average annual profit and the average rate of return as a percentage of the initial investment, the interpretation of ARR, and its use and limitations when comparing investments.

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

Cash and cash flow: the importance of cash, the consequences of cash flow problems, the purpose of a cash flow forecast, the calculation and interpretation of inflows, outflows, net cash flow and opening and closing balances, and how forecasts aid decision-making.

Revenue, costs, profit and loss: the definition and calculation of revenue, fixed, variable and total costs, the calculation of profit or loss, the importance of profit, and the difference between cash and profit.

Sources of finance: internal and external sources, short-term and long-term finance, the suitability of each source, and the factors a business considers when choosing how to raise money.

The role of the finance function: the purpose of finance in a business, the difference between cash and profit, the use of financial information in decision-making, and profitability including profit margins.

Ethical and environmental considerations: what is meant by ethical behaviour, examples of ethical and unethical practice, why businesses act ethically, how business activity affects the environment, sustainability, and the impact of both on a business.

Globalisation: the concept of globalisation, the growth of multinational companies, how globalisation influences business location, international branding and how businesses compete internationally, and the opportunities and threats globalisation brings.

The impact of legislation on businesses: the main areas of law affecting businesses (consumer law, employment law, health and safety law), the effect of legislation on costs and demand, and the consequences of failing to comply.

Stakeholders and their influence: who a business's stakeholders are, their differing objectives, how stakeholders influence business decisions, the conflicts that arise between them, and how a business manages competing stakeholder interests.

Technology and business: the role of technology as an external influence, e-commerce and digital communication, automation in production, social media and digital marketing, and the benefits and drawbacks of technology for a business.

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.

Market research: primary and secondary research, qualitative and quantitative data, methods of research, the use of sampling, the reliability of data, and how research informs marketing decisions.

Market segmentation: the bases of segmentation (demographic, geographic, behavioural and lifestyle), the benefits of targeting segments, market mapping, and how segmentation guides the marketing mix.

The marketing mix - product and price: the product life cycle and extension strategies, the design mix, the Boston Matrix, and pricing strategies including cost-plus, competitive, penetration, skimming, psychological and loss leader.

The marketing mix - promotion and place: methods of promotion (advertising, sales promotion, public relations, sponsorship, social media), distribution channels and the use of e-commerce, and how the elements of the marketing mix work together.

The role of marketing: the purpose of marketing, identifying and anticipating customer needs, building customer relationships, the difference between mass and niche markets, and market share and its calculation.

Business location: the factors influencing where a business locates (market, labour, materials, costs, infrastructure), the impact of the internet and e-commerce on location decisions, and how location affects costs and competitiveness.

Consumer law: the main consumer rights covering goods and services, the impact of consumer protection law on businesses, and the consequences of breaking the law.

Production processes: job, batch and flow production, the use of technology in production, the impact on productivity and efficiency, and how a business chooses a method of production.

Quality of goods and services: the importance of quality, quality control versus quality assurance, total quality management, and the costs and benefits of maintaining quality.

The sales process and customer service: the stages of the sales process, the importance of good customer service, methods of providing customer service including after-sales, and the impact of service on customer loyalty.

Working with suppliers: the role of procurement and the supply chain, managing stock including just-in-time and just-in-case, the factors in choosing a supplier, and the impact of supplier relationships on the business.

Communication in business: the importance of effective communication, methods of communication, the impact of digital communication and technology, and the causes and consequences of communication barriers.

Motivation and retention: the importance of motivation, financial methods (wages, salaries, bonuses, commission, fringe benefits), non-financial methods (job rotation, enrichment, autonomy, praise), and how motivation supports staff retention.

Organisational structures and different ways of working: tall and flat structures, span of control and chain of command, centralised and decentralised structures, and ways of working including full-time, part-time, flexible, remote and the gig economy.

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

The role of human resources: the purpose of the HR function, workforce planning, the impact of employment law on businesses, and the main areas of legislation covering recruitment, pay, discrimination and health and safety.

Training and development: induction, on-the-job and off-the-job training, the benefits and drawbacks of training, the importance of staff development, and how training links to motivation and performance.