Pearson BTEC • Business

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

Describes the advantages and disadvantages of internal and external sources of finance and business plans, as well as explaining the difference between unlimited and limited liability

Describes what cash flow and cash flow forecasting is, how to calculate cash flow, the advantages and disadvantages of cash flow and why newly established businesses are vulnerable to cash flow problems

Explains sales revenue, how to increase sales revenue, sales volume, sales forecasting, factors affecting sales forecasting, and the different types of costs (fixed, variable and total)

Explains break-even analysis, the break-even formula, limitations of break-even, changes in break-even output and margin of safety.

Describes the three types of budget (income, expenditure and profit), methods of setting a budget, variance analysis, and the advantages and disadvantages of budgets

Describes a Statement of Comprehensive Income, profitability ratios (e.g. gross profit margin), how to improve profitability, and the difference between cashflow and profit

Explains what a statement of financial position (balance sheet) is, assets and liabilities, liquidity ratios (acid test and current ratios), and working capital

Describes the internal and external factors contributing to the failure of a business.

Describes the role of an entrepreneur (setting up a business, innovation, etc.), barriers to entrepreneurs, skills and characteristics of entrepreneurs, risk and rewards, and opportunity cost.