Social Sciences Business Business management
AQA A-Level business paper 1 revision / AQA A-LEVEL
BUSINESS Business Merged Question Paper + Mark
Scheme
Save
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ITC 761 Exam 3 Study Guide INP 402 Con 3990 prep
335 terms Teacher 289 terms Teacher 377 terms
Wanjaki88_Wanjaki88 Preview MR_MMk Preview ingaticollins5
Why businesses exist Can make you money and you can be your own boss
a business aim expressed to make it seem especially purposeful
Mission
and motivating
Objectives SMART Specific, Measurable, Achievable, Realistic, Time-bound
- it is motivating to have a goal to aim toward
Why businesses set objectives
- as a boss you can not make every decision
Profit Revenue - total costs
-sole traders
-private limited companies (LTD)
What are the 5 types of business -Public limited companies (PLC)
-Private and public sector organisations
- non-profit organisations (charities)
Sole traders a business that is owned and operated by one person
A small to medium sized company, owned by shareholders who
Private Limited Company (Ltd) have limited liability. The company cannot sell its shares to the
general public.
-Limited liability
-Additional capital can be raised by selling shares (not to the
Private Limited Company
general public)
Advantages
-Separate legal existence to the owner
-Higher business status to sole trader
Private limited company -You have to publish the account information
Disadvantages -You need two share of £1 each
A limited company with more that £50,000 of share capital. Any
Public limited company (plc) member of the public can buy shares. Public companies must
publish more detailed accounts
, -Raising capital through public issue of shares
-Offering shares to the public spreads risk
-Banks are more likely to lend money to PLC's
Public limited company -More growth and expansion opportunities
Advantages -Having PLC at the end of your business name gives a better
image
-Shares are more easily transferred so shareholders are happier
-Separate legal entity to the owner
-More regulations that could increase costs
public limited company
-Higher level of transparency needed
Disadvantages
-Must start with £50,000 share capital
Private sector organisations Organisations owned by individuals or companies
Public sector organisations Businesses owned by the government.
Businesses with a motive other than profit, may be to provide a
Non-profit organisations
social benefit or service to society or to support a cause.
The total value of capital raised from shareholders by the issue of
Share capital
shares
Role of Shareholders to raise important issues with the board directors and raise funds
-Annual dividend payments
Why shareholders invest
-A rise in the value of shares
Market capitalisation Number of issued shares x current share price
-The profit after tax of the company x the value investors place
Influences on the price of shares
on on those earnings
Significance of share price High = cheap and easy to obtain more share capital
changes Low = unlikely to raise any extra share capital
-Market conditions
-Competition
What are the 6 external factors -Changes in household incomes
affecting businesses -Changes in interest rates
-Demographic factors
-Environmental issues
-The number of competitors in a particular market
-The intensity of competitiveness
Market Conditions
-Total market available
-The rate at which the market is growing
The tighter the economic and market conditions, the greater the
Competition
competitive pressures tend to be
-Changes in the real income of the main income earner
Factors that effect household
-The number of people in the household that work
incomes
-The impact of government decisions on taxation and benefits
If interest rates go up, businesses and individuals spend less. If
Changes in interest rates
interest rates go down, businesses and individuals spend more.
-Population size
-Age
Demographic factors
-Gender
-Ethnicity
Environmental issues and fair- Concern for green issues and ethical issues involved with
trade business.
AQA A-Level business paper 1 revision / AQA A-LEVEL
BUSINESS Business Merged Question Paper + Mark
Scheme
Save
Students also studied
Flashcard sets Study guides Practice tests
ITC 761 Exam 3 Study Guide INP 402 Con 3990 prep
335 terms Teacher 289 terms Teacher 377 terms
Wanjaki88_Wanjaki88 Preview MR_MMk Preview ingaticollins5
Why businesses exist Can make you money and you can be your own boss
a business aim expressed to make it seem especially purposeful
Mission
and motivating
Objectives SMART Specific, Measurable, Achievable, Realistic, Time-bound
- it is motivating to have a goal to aim toward
Why businesses set objectives
- as a boss you can not make every decision
Profit Revenue - total costs
-sole traders
-private limited companies (LTD)
What are the 5 types of business -Public limited companies (PLC)
-Private and public sector organisations
- non-profit organisations (charities)
Sole traders a business that is owned and operated by one person
A small to medium sized company, owned by shareholders who
Private Limited Company (Ltd) have limited liability. The company cannot sell its shares to the
general public.
-Limited liability
-Additional capital can be raised by selling shares (not to the
Private Limited Company
general public)
Advantages
-Separate legal existence to the owner
-Higher business status to sole trader
Private limited company -You have to publish the account information
Disadvantages -You need two share of £1 each
A limited company with more that £50,000 of share capital. Any
Public limited company (plc) member of the public can buy shares. Public companies must
publish more detailed accounts
, -Raising capital through public issue of shares
-Offering shares to the public spreads risk
-Banks are more likely to lend money to PLC's
Public limited company -More growth and expansion opportunities
Advantages -Having PLC at the end of your business name gives a better
image
-Shares are more easily transferred so shareholders are happier
-Separate legal entity to the owner
-More regulations that could increase costs
public limited company
-Higher level of transparency needed
Disadvantages
-Must start with £50,000 share capital
Private sector organisations Organisations owned by individuals or companies
Public sector organisations Businesses owned by the government.
Businesses with a motive other than profit, may be to provide a
Non-profit organisations
social benefit or service to society or to support a cause.
The total value of capital raised from shareholders by the issue of
Share capital
shares
Role of Shareholders to raise important issues with the board directors and raise funds
-Annual dividend payments
Why shareholders invest
-A rise in the value of shares
Market capitalisation Number of issued shares x current share price
-The profit after tax of the company x the value investors place
Influences on the price of shares
on on those earnings
Significance of share price High = cheap and easy to obtain more share capital
changes Low = unlikely to raise any extra share capital
-Market conditions
-Competition
What are the 6 external factors -Changes in household incomes
affecting businesses -Changes in interest rates
-Demographic factors
-Environmental issues
-The number of competitors in a particular market
-The intensity of competitiveness
Market Conditions
-Total market available
-The rate at which the market is growing
The tighter the economic and market conditions, the greater the
Competition
competitive pressures tend to be
-Changes in the real income of the main income earner
Factors that effect household
-The number of people in the household that work
incomes
-The impact of government decisions on taxation and benefits
If interest rates go up, businesses and individuals spend less. If
Changes in interest rates
interest rates go down, businesses and individuals spend more.
-Population size
-Age
Demographic factors
-Gender
-Ethnicity
Environmental issues and fair- Concern for green issues and ethical issues involved with
trade business.
