AQA GCSE Business Studies Paper 2 Exam With Complete Questions And Answers.

Aim - correct answer The intention to reach a goal. Asset - correct answer Something the business owns; it has a value. Air pollution - correct answer The presence or introduction of harmful substances into the air causing disease, allergies or damage to humans, animals, plants or the built environment. Advertising - correct answer A method of communicating information about the product; the business pays for advertising time/space. Consumer law - correct answer Laws designed to ensure that businesses make products that are safe and of good quality, and that they deal with customers honestly and fairly. Brand image - correct answer The consumers' perception of the brand; its character, qualities and shortcomings. It is developed over time and operates as a consistent theme through advertising campaigns. Average rate of return - correct answer The average profit for the year as a percentage of the original investment. Business plan - correct answer A detailed statement of how the business intends to operate, either at start-up or during a given period of time. Competition - correct answer The rivalry between businesses looking to sell their goods/services in the same market. Consumer spending - correct answer The money spent by households on goods and services to satisfy their needs and wants. Channels of distribution - correct answer The route the ownership of the product transfers from the seller to the buyer; it may be a single transaction or pass through others such as wholesalers, distributors, agents and retailers. Break-even chart - correct answer A diagrammatic representation of the costs and revenue for a product; it plots total costs against total sales revenue, showing the break-even point where they cross. Break-even output - correct answer The point at which the business' total sales equals the total costs. There is neither profit nor loss. Cost - correct answer The money spent by a business on goods and services. Competitive pricing - correct answer Setting the price of a product so that it is in line with competitors' prices. Contracts of employment - correct answer A legal document that sets out the terms and conditions of the job for the employer and the employee. Customer - correct answer Individuals, businesses or organisations that purchase goods/services and make decisions about which supplier to choose. Disposal of waste - correct answer The removal, storage or destruction of unwanted material. Methods include recycling, burning and landfill sites. Cost-plus pricing - correct answer Setting the price of a good or service at an amount higher than the cost of producing it so that a profit is made. Cash - correct answer Money that the business has in cash or at the bank. Cash flow forecast - correct answer A financial planning tool that estimates the money coming into and going out of the business on a month-by-month basis; it allows the business to predict times when additional finance may be needed to maintain liquidity. Customer engagement - correct answer The relationship between the business and the customer that puts the customer's requirements at the centre of the operation to build brand loyalty. E-commerce - correct answer Business transactions carried out electronically on the internet Customer satisfaction - correct answer Whether customers are pleased with the goods/services they receive; whether they would purchase again. Demand - correct answer The quantity of a particular product that will be bought at particular price over a specific time. Extension strategies - correct answer Methods that can be used to prolong the life of a product; could include price reductions, modifications to the product or relaunch. Cash inflow - correct answer Money received by the business from its operations or investments. Employment law - correct answer Rulings that relate to the rights and responsibilities of people who work for a business; they affect the recruitment and selection process and how the business deals with its workers. Focus groups - correct answer A small number of people from the target market brought together to discuss a particular product; produces qualitative data about their preferences and opinions. Cash outflow - correct answer Money paid out by the business to fund its operations or investment activities. Equality Act (2010) - correct answer Protects people from discrimination in the workplace and in wider society. It sets out the different ways in which it is unlawful to treat someone. Directors - correct answer The people who are elected by the shareholders to run the business on their behalf. Ethical objectives - correct answer A business' goals that relate to fair business practice or moral guidelines and make a positive contribution to the business' reputation. Loss leader - correct answer A good or service sold at below cost price to bring customers into the shop with the intention that, once there, they may purchase full-priced items too. Closing balance - correct answer The amount that remains in the account at the end of an accounting period. Diseconomies of scale - correct answer When a business grows too large, leading to a possible increase in unit cost. Dividend - correct answer A portion of the after-tax profit that is paid to shareholders according to the number of shares they own. Ethics - correct answer The moral principles that guide how a business operates. Market research - correct answer Collecting information about the customers' needs, wants and preferences that will help the business to make design, production and marketing decisions. External sources of finance - correct answer Obtaining funds from sources that are not part of the business; possibilities include bank loan, mortgage, overdraft, additional partner or share issue. Fixed costs - correct answer The costs that stay largely the same, regardless of the business' output. E-commerce - correct answer Business transactions carried out electronically on the internet. Marketing - correct answer The coordination of activities that ensure that customers get what they want, in the amounts they want, when they want it and at a price that suits them. Exchange rates - correct answer The price of one currency based on another or the cost of buying one currency from another, for example £1 = $1.21. Economies of scale - correct answer The cost advantage of producing on a large scale. As output increases the unit cost decreases. Export - correct answer Good/service sold to a customer in another country. Marketing mix - correct answer The combination of four areas of marketing activities (price, product, promotion and place) to make sure that customers' needs and wants are met while generating optimum revenue. Government grants - correct answer Money available from the government to fund projects that it wants to support; the money is not repaid, but there are conditions and often progress reports are required. Point of sale - correct answer Opportunities to communicate information about the product in the place where it is sold (retail outlet); window displays, hanging signs or shelf signs. Hire purchase - correct answer Buying items by making a small initial payment and paying the remaining amount in installments over an agreed period of time. Global warming - correct answer The steady increase in the earth's temperature due to emissions and the buildup of greenhouse gases, resulting in climate changes. Employees - correct answer Individuals who work full time or part time for the business; they have a contract of employment detailing their duties and rights. Enterprise - correct answer The ability to identify business ideas and opportunities to bring them to fruition and to take risks where appropriate. Globalisation - correct answer The trend for large businesses to operate on a worldwide scale; money, goods and services can be transferred across national borders. PR - correct answer Managing the relations with groups such as consumers, the media, pressure groups or investors to present a favourable impression and generate interest. Income statement - correct answer A summary of the revenue and expenses over an accounting period that lead to a profit or loss position. Entrepreneur - correct answer A person who has the vision to use initiative to make business ideas happen, managing the resources and risks. Health and Safety at Work Act (1974) - correct answer Sets out the duties and responsibilities of both employers and employees for health and safety in the workplace. Price penetration - correct answer Fixing a low price when a new product is first introduced (into an established market) so that the product gains market share quickly. Once the product is established, the price is then raised so that profit is increased. Interest rates - correct answer The rate charged for borrowing money over a period of time, or the reward for saving money. Liability - correct answer The extent of the owner's/owners' responsibility for the debts of the business. Import - correct answer Good/service bought from a supplier in another country. Price skimming - correct answer Setting a very high price when a product (often technology item) is first introduced to the market in relatively small numbers; only those who can afford to pay high prices to own the latest models will be able to purchase the product. The price is later reduced so that others can afford to buy. Ethical objectives - correct answer A business' goals that relate to fair business practice or moral guidelines and make a positive contribution to the business' reputation. Ethics - correct answer The moral principles that guide how a business operates. Interest rates - correct answer The rate charged for borrowing money over a period of time, or the reward for saving money. Primary research - correct answer Collecting information first-hand direct from the public; field research including surveys, questionnaires and testing designed specifically for the market/product.