BusinessQ&A by dot point

Business aims and objectives: survival, profit, growth, market share, customer satisfaction and social or ethical aims, the difference between an aim and an objective, SMART objectives, and how and why aims and objectives change as a business develops.

Business growth and the scales of business activity: why businesses grow, internal (organic) and external growth including mergers and takeovers, the difference between local, national and multinational businesses, and the advantages and disadvantages of growing larger.

Types of business ownership: sole traders, partnerships, private limited companies and franchises, the meaning of limited and unlimited liability, the advantages and disadvantages of each form, and the difference between the private and public sectors.

Enterprise and entrepreneurship: the role of the entrepreneur, the characteristics and skills of a successful entrepreneur, the risks and rewards of starting a business, and the reasons people set up in business.

Stakeholders: internal and external stakeholders, the different interests and objectives of owners, employees, customers, suppliers, the local community and the government, how stakeholder interests can conflict, and the influence stakeholders have on a business.

The purpose of business activity: producing goods and services to meet the needs and wants of customers, the difference between needs and wants, the meaning of adding value, the factors of production, and the primary, secondary and tertiary sectors.

Customer service and technology in operations: the importance of good customer service, methods of providing it, the role of after-sales service, and how technology improves operations and customer service.

Methods of production: job, batch and flow production, the advantages and disadvantages of each, the meaning of productivity and efficiency, and the factors that affect how a business chooses to produce.

Quality: the importance of quality, the difference between quality control and quality assurance, methods of maintaining quality, and the benefits of producing high-quality goods and services.

The supply chain and procurement: the role of suppliers, choosing suppliers, managing stock and inventory, just-in-time and just-in-case stock control, and the importance of an efficient supply chain.

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 uses and limitations of break-even.

Cash flow: the meaning and importance of cash flow, the cash flow forecast, cash inflows and outflows, net cash flow and the closing balance, the difference between cash flow and profit, and ways to improve cash flow.

Financial statements and performance: the income statement, gross profit and net profit, profitability ratios including gross profit margin and net profit margin, and using financial information to judge performance.

Revenue, costs and profit: total revenue, fixed costs, variable costs and total costs, the calculation of profit and loss, and the importance of profit to a business.

Sources of finance: internal and external sources, short-term and long-term finance, owner's capital, retained profit, loans, overdrafts, share capital, crowdfunding and trade credit, and the advantages and disadvantages of each.

Motivation: the importance of a motivated workforce, financial methods of motivation such as pay, bonuses and fringe benefits, non-financial methods such as job rotation, enrichment and praise, and the link between motivation and productivity.

Organisational structure: the chain of command, span of control, levels of hierarchy, tall and flat structures, delegation, and centralised and decentralised decision-making.

Recruitment and selection: internal and external recruitment, the recruitment process, the job description and person specification, methods of selection, and the advantages and disadvantages of each approach.

Training, development and employment rights: induction, on-the-job and off-the-job training, the benefits of training, the importance of good communication, and the main employment rights that protect workers.

Ethical and environmental considerations: business ethics, the trade-off between ethics and profit, environmental and sustainability issues, the impact of business on the environment, and the costs and benefits of being ethical and sustainable.

Globalisation and international trade: the meaning of globalisation, imports and exports, the role of multinationals, the opportunities and threats of trading internationally, and the impact of globalisation on businesses and Wales.

Legislation and the business environment: consumer protection law, employment law, health and safety law, the reasons for legislation, and the impact of laws on how a business operates.

Technology and business: the impact of technology on production, communication and selling, automation and e-commerce, the benefits and drawbacks of new technology, and how technology affects jobs and the way a business operates.

The economic climate: how interest rates, inflation, unemployment, taxation and exchange rates affect businesses, the business cycle of boom and recession, and how businesses respond to economic change.

Digital marketing and e-commerce: the use of the internet and social media in marketing, e-commerce and online selling, the benefits and drawbacks of digital marketing, and the impact of technology on small and large businesses.

Market research: primary and secondary research, quantitative and qualitative data, methods of collecting data, sampling, the use and reliability of research, and market segmentation and targeting.

The marketing mix: the four Ps of product, price, place and promotion, pricing methods, the product life cycle and extension strategies, methods of promotion, channels of distribution, and how the elements work together and must be balanced.

The role of marketing: identifying and satisfying customer needs, the aims of marketing, the importance of understanding the market and competitors, and the difference between mass and niche markets.