← Business Management syllabus

ScotlandBusiness Management

Management of People and Finance

6 dot points across 6 inquiry questions. Click any dot point for a focused answer with worked past exam questions where available.

What are fixed and variable costs, and how does a business calculate its break-even point and margin of safety?

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.
A focused answer to the SQA National 5 Business Management content on costs and break-even, covering fixed, variable and total costs, the break-even point and break-even chart, calculating the break-even point using contribution, and the margin of safety.
11 min answer →

What is a cash budget, how is it interpreted, and how can a business solve cash flow problems?

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.
A focused answer to the SQA National 5 Business Management content on cash budgeting, covering the purpose and interpretation of a cash budget (cash in, cash out, net cash flow and closing balance), the causes of cash flow problems, and the solutions a business can use to improve cash flow.
11 min answer →

How does a business measure its profit, and how does technology help manage finance?

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.
A focused answer to the SQA National 5 Business Management content on financial statements, covering the income statement (sales, cost of goods sold, gross profit, expenses and profit for the year), the calculation and use of the gross and net profit margins, and the use of technology in finance.
11 min answer →

How does a business recruit and select the right employees?

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.
A focused answer to the SQA National 5 Business Management content on recruitment and selection, covering the stages of recruitment, the difference between internal and external recruitment, and the stages and methods of selection used to choose the best candidate.
10 min answer →

Where does a business get the money it needs, and which source suits which purpose?

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.
A focused answer to the SQA National 5 Business Management content on sources of finance, covering bank loans, overdrafts, trade credit, hire purchase, leasing, mortgages, government grants, retained profit and owner's funds or share capital, with the advantages and disadvantages of each.
10 min answer →

How does a business train and motivate its employees, and what employment laws must it follow?

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.
A focused answer to the SQA National 5 Business Management content on training and motivation, covering methods of training (induction, on-the-job, off-the-job) and their benefits, the financial and non-financial methods of motivating staff, and the main employment legislation a business must obey.
11 min answer →