AQA Alevel Business (AS). 2022 Summer
Revision masterpiece.
Business - Ans-The creation of a customer; in other words, conceiving a product or service that people
will pay enough for to generate a profit.
Budgets - Ans-an agreed ceiling on the monthly spending by any department or manager
Corporate Objectives - Ans-targets for the whole business, such as profits to rise by 20% a year for the
next three years.
Delegated - Ans-Having passed authority down the hierarchy so that the local or more expert person
make the decision
Entrepeneur - Ans-A person with the initiative and drive to make a business idea happen
Mission - Ans-A business aim Expressed to make it seem especially purposeful and motivating
Mission Statement - Ans-A short, powerfully- expressed sentence or two that explains the business aims
clearly, yet motivationally
Objectives - Ans-Targets precise enough to allow praise or blame for the person in charge
Profit optimisation - Ans-that the surplus of revenue over costs should be just right ; neither two high in
the short term nor too low to finance long-term success
Strategy - Ans-A medium long term plan for meeting your objectives
, legal business structure - Ans-determines the financial impact on the business owners if things go
wrong. Also affects the ease with which the business can finance growth
Bankrupt - Ans-When an individual is unable to meet personal liabilities, some or all of which can be as a
consequence of business activities
Creditors - Ans-those owed money by a business. ~For example, suppliers and bankers
Incorporation - Ans-establishing a business as a separate legal entity from its owners, and therefore
giving the owners limited liability
Limited liability - Ans-Owners are not liable for the debts of the business; they can lose no more than the
sum they invested.
monopoly - Ans-Where the sales of one business have a dominant share of its marketplace
Registrar of companies - Ans-The government department which allow firms to become incorporated. It
is located at Companies House, where Articles of Association , Memorandums of Association and the
anual accounts of limited companies are available for public scrutiny
Sole Trader - Ans-A one-person business with unlimited liability
Unlimited Liability - Ans-Owners are liable for any debts incurred by the business, even if it requires
them to sell all of their assets and possessions and become personally bankrupt
Annual General Meeting (AGM) - Ans-A yearly meeting inwhich company directors invite all
shareholders to come to quiz the board and vote on new resolutions. A legal requirement for plcs
Dividend Cover - Ans-Measures how well a firm's dividends are covered by its profits for the year.
Accountants require a figure of atleast 2, i.e, that the company should pay out no more than half of its
profits to shareholders.
Revision masterpiece.
Business - Ans-The creation of a customer; in other words, conceiving a product or service that people
will pay enough for to generate a profit.
Budgets - Ans-an agreed ceiling on the monthly spending by any department or manager
Corporate Objectives - Ans-targets for the whole business, such as profits to rise by 20% a year for the
next three years.
Delegated - Ans-Having passed authority down the hierarchy so that the local or more expert person
make the decision
Entrepeneur - Ans-A person with the initiative and drive to make a business idea happen
Mission - Ans-A business aim Expressed to make it seem especially purposeful and motivating
Mission Statement - Ans-A short, powerfully- expressed sentence or two that explains the business aims
clearly, yet motivationally
Objectives - Ans-Targets precise enough to allow praise or blame for the person in charge
Profit optimisation - Ans-that the surplus of revenue over costs should be just right ; neither two high in
the short term nor too low to finance long-term success
Strategy - Ans-A medium long term plan for meeting your objectives
, legal business structure - Ans-determines the financial impact on the business owners if things go
wrong. Also affects the ease with which the business can finance growth
Bankrupt - Ans-When an individual is unable to meet personal liabilities, some or all of which can be as a
consequence of business activities
Creditors - Ans-those owed money by a business. ~For example, suppliers and bankers
Incorporation - Ans-establishing a business as a separate legal entity from its owners, and therefore
giving the owners limited liability
Limited liability - Ans-Owners are not liable for the debts of the business; they can lose no more than the
sum they invested.
monopoly - Ans-Where the sales of one business have a dominant share of its marketplace
Registrar of companies - Ans-The government department which allow firms to become incorporated. It
is located at Companies House, where Articles of Association , Memorandums of Association and the
anual accounts of limited companies are available for public scrutiny
Sole Trader - Ans-A one-person business with unlimited liability
Unlimited Liability - Ans-Owners are liable for any debts incurred by the business, even if it requires
them to sell all of their assets and possessions and become personally bankrupt
Annual General Meeting (AGM) - Ans-A yearly meeting inwhich company directors invite all
shareholders to come to quiz the board and vote on new resolutions. A legal requirement for plcs
Dividend Cover - Ans-Measures how well a firm's dividends are covered by its profits for the year.
Accountants require a figure of atleast 2, i.e, that the company should pay out no more than half of its
profits to shareholders.
