Pearson Edexcel • Business

Describes statement of comprehensive income and statement of financial position (balance sheets), and explains why stakeholders are interest in them. Also explains profit quality.

Describes gearing ratio (how to interpret it and the advantages/disadvantages of it), and Return on Capital Employed (ROCE)

Explains labour productivity, labour turnover, labour retention, absenteeism, and human resource strategies (financial rewards, employee share ownership, consultation strategies, empowerment strategies)

Describes the different causes of change (e.g. organisational size, new ownership), the effects of change, key factors in change, managing resistance to change, and scenario planning

Describes the different methods of production (e.g. batch or flow production), the advantages and disadvantages of each type of production, and how to chose the type of production. Also explains efficiency and productivity, and capital intensive and labour intensive production.

Describes capacity utilisation, implications of under-utilisation of capacity (spare capacity), and ways of improving capacity utilisation.

Describes stock control diagrams (buffer stock, maximum stock level, re-order level, etc.), implications of poor stock control and Just-in-Time

Describes quality management, quality control, quality assurance, total quality management (TQM) and Kaizen

Describes the economic environment, the business cycle, inflation, deflation, interest rates, exchange rates, the effect of economic uncertainty on the business environment, and the competitive environment

Explains the different types of legislation (e.g. consumer protection law, employee protection, environmental protection, etc.) and how it impacts the business.