Business ManagementQ&A by dot point

The role and benefits of marketing, the identification of customers through market segmentation, the difference between field and desk research, and the main methods of primary market research used to gather customer information.

The factors in choosing a supplier (the purchasing mix), the management of inventory (stock control) including the costs of over-stocking and under-stocking, the methods of production (job, batch and flow), and the use of technology in operations.

The methods of ensuring quality (quality control, quality assurance, total quality management, quality standards, quality circles and benchmarking) and their benefits, and the ethical and environmental issues in operations such as waste, packaging and sustainable sourcing.

The four Ps of the marketing mix - product (including new product development, branding and the product life cycle with extension strategies), price (pricing strategies), place (channels of distribution) and promotion (methods of promotion) - and the role of ethical marketing and technology in marketing.

The difference between fixed and variable costs and total costs, the meaning and use of the break-even point and break-even chart, the calculation of the break-even point using contribution, and the meaning of the margin of safety.

The purpose and interpretation of a cash budget (the forecast of cash in and cash out and the closing balance), the causes of cash flow problems, and the solutions a business can use to improve its cash flow.

The purpose and content of the income statement (sales/turnover, cost of goods sold, gross profit, expenses and profit for the year), the calculation and use of the gross profit and net profit margins, and the use of technology in finance.

The stages of the recruitment process, the difference between internal and external recruitment, and the stages and methods of selection used to choose the best candidate for a job.

The main sources of finance available to a business (bank loan, overdraft, trade credit, hire purchase, leasing, mortgage, government grant, retained profit and owner's funds or share capital) and the advantages and disadvantages of each.

The methods of training employees (induction, on-the-job and off-the-job) and their benefits, the financial and non-financial methods used to motivate staff, and the main employment legislation a business must obey.

The objectives of business organisations (survival, growth, profit maximisation, providing a service and social responsibility), the four factors of production needed to produce goods and services (land, labour, capital and enterprise), and the role of customer satisfaction in success.

The internal factors (finance, staffing/human resources, management and technology) and external factors (political, economic, social, technological, environmental and competitive) that affect business decisions, including which factors are controllable and which are not.

The role of business organisations in providing goods and services and satisfying needs and wants, and how organisations are classified by sector of the economy (private, public and third) and sector of industry (primary, secondary and tertiary).

The main stakeholders of a business (owners and shareholders, managers, employees, customers, suppliers, banks/lenders, government and the local community), their interest in and influence over the organisation, and how stakeholder interests can conflict.

The features, advantages and disadvantages of the main types of business organisation: sole traders, partnerships, private limited companies (Ltd), public limited companies (plc), franchises, charities, social enterprises and public sector organisations, including the meaning of limited and unlimited liability.