A-level business Moc Revision

Question 1

What is a private sector? examples?

What is the public sector? examples?

Answer 1

They are owned by a private individual eg sole traders , ASDA, John and Lewis.
They are owned by the government and aim to provide services to the public eg NHS

Question 2

What are the aims and objectives of a non-profit business? examples?

Answer 2

business such as the red cross disperse money from donations internationally

Question 3

What are limited and unlimited liabilities? give an ad and dis of both

Answer 3

advantage- Limited liability mean the are not responsible for the deps of the business, this means that it is a less of a finacial risk further more decisons dont have to be made by the investor so there is less stress
however share holder can lose the money that they invested into the business, this may be caused by the product not having as much sucess or demand as expected, short termisum may also affect this
Disadvantage- unlimited liabilities means that the owner and the business is seen as one under the law as a result the business debts becomes the owners debts leading to selling their houses eg sole traders further more small business are more likly to have unlimited liabities and the percentage of small business that close within the first year are 60% so it is a huge finacial risk
howerver the owner would have full control over the business and be able to mold the business the way he want and with maybe his principles or objectives such as useing recyclble material unlike share holders constant focus on profit

Question 4

what are sole traders? what are the advantages and disadvantages of being one?

Answer 4

They are individuals who are self-employed and trade under his or her name
Freedom and control of decision making of business and The owner is entitled to all the profit made by the business as the owner doesn’t need to share it with shareholders this suggests they can decide whether he or she wants to keep the profit as savings or put it back into the business to further expand the business
however risky as no one to share the unlimited liabilities with so incase of debt the owner can’t share the debt the stress of a declining business can affect a person’s mental health further more all decisions made by the owner are stressful or overwhelming
sole trades have access to limited sources of finance as sole traders are seen as high risk this suggest they have to show constant levls of profit or they may not get the full amount

Question 5

what is the difference between private limited and public limited companies?

Answer 5

private limited company(LTD) cant sell shares to the public, the business is usually owned by family members, making it less risky and all the share holders has to agree to sell shares
public limited company (PLC) can sell their shares to the public, so they can raise capital quicker duse to the stock exchange however the finances are made public so competitors can see how well the business is doing

Question 6

what is share capital?

Answer 6

amount of money gained from selling shares

Question 7

what is market capitalization?

Answer 7

total value of the shares of a business

Question 8

what are dividends

Answer 8

A dividend is a distribution of profits by a corporation to its shareholders

Question 9

what is the role of share holder and why do they invest

Answer 9

Shareholders invest in a company by purchasing shares, each of which represents a certain percentage of the business. In return for owning shares, members are entitled to vote on significant decisions and receive a portion of any profit generated by the business.
they are involved in finacial stupport and decision making according to their shares

Question 10

what are shares

what influences share prices

Answer 10

corporation’s assets and profits equal to how much stock they own. Units of stock are called “shares.”
the share price is determined by the demand and if more people want to sell their shares then the demand goes down furthermore the if the overall performance of the business id high there would higher dividends so higher demand eg if belief of high future performance or a takeover

Question 11

what are the mission objective and a private sector public sector sole trader public limited company

Answer 11

private sector -maximize profit
public sector - provide eservices for the public
sole trader - may be market penetration(enter the market) create a USP or give the product at lower prices to gain a completive advantage as most business (60%) fail within the first 3 years from the launch of their product by larger business that dominated the market further more they have low amounts of budgets and recourses to be completive

Question 12

why quality is important why is poor quality bad

Answer 12

quality can create a good reputation for the business it can give the business a brand image this means that they can create users using this consequently this means that the customer loyalty and repeat purchase will increase as a result the profit and sales increase advantages include reduce complained products and waste and less need for promotion however high quality may mean that the cost per unite is very high and if the business does not achieve high demand it can lead to the business not reaching break-even

Question 13

what are the different methods to improve quality explain

Answer 13

quality assurance is when employees check their own work reduce errors to be made in the first place this can empower employees and can motivate them as they are more involved and engaged however this requires training which can be expensive
quality control checks if the raw materials are up to standards
kaizen is when employees improve their work slightly over time same advantages as quality assurance but quick change may be needed for the quality

Question 14

what are the benefits and difficulty of improving quality and whatvare the concequenecs of poor quality

Question 15

why is hr objectives important
external /internal influenecs on hr objectives

Question 16

6.1

Question 17

what is labour productivity equation why its important how to increase it, how to reduce labour cost per unite

Answer 17

labour productivity= /output per period no of employees
can be increased by motivating them giving them bonus crafting a good working environment such as making sure there is an equal culture where everyone is involved etc

Question 18

what is labour turnover or retention what are the causes

Answer 18

is the amount of employees that leave or stay at the business this can be due to external factors such as the business’s need to reduce costs causing redundancies or due to the workplace being less motivation
a high turnover can cause a bad reputation in the working environment of the business this can affect future skilled employees’ applying there

Question 19

what is a tall or short organisational structure

Answer 19

tall has more chains of command there may be communication problems for employees a short may have portables as it

Question 20

what are centralised and decentralised

Answer 20

centralised means that the decisions are made top or the headquarters of the business the employees have little say in the decisions made this can be seen a demotivating as the employees are not used for their perhaps good decision-making skills however the top of the higher archy may consist of people with higher experience so a business can put in more trust about a decision unlike if the workers were given power
decentralised is mostly used internationally it can motivate employees but lack of experience can be damaging for a business

Question 21

what is HR planing

Answer 21

is when the business assesses the number of employees needed according to the number of skills needed to help the business eg new technology means the new employee is needed
redeployment move employee from one job role to another

Question 22

mallows hierarchy of needs when to talk about it

Answer 22

use if when talking about employees self-actualisation 
self-esteem
social needs 
safety 
physical needs

Question 23

two factors of henzbers theory

Answer 23

hygiene and motivation

Question 24

how can improving motivation of employees help a business

Answer 24

highly motivated employees can increase productivity consequently this means that there is more labour turnover and the employees would be more allied with the goal and objectives of the business further more it means that there is more employee retention and fewer absentees, as a result, the business s would have a good reputation for working environments for employees attracting more employees giving the business a wider range of skilled workers to choose for whom can bring new innovation a ideas to the business

Question 25

what do the theories of Taylor, Maslow and Herzberg say about motivation

Answer 25

Taylor believes money is the motivator so employees should get paid for their productivity however this may affect the quality
mallows hierarchy of needs includes self-esteem, self-actualisation (achieving goals) and social and job security etc
herbert said it was hygiene (working conditions pay etc) and motivation responsibilities and goals

Question 26

how can payment methods and flexible working improve motivation

Answer 26

piece rate (paid for each product produced )
higher salaries
commission (bonuses )
etc are some financial ways to motivate e employees however these can affect the quality
flexible working is motivative as it provides employees with flexible working hours and pattern to balance their social life eg university

Question 27

what is the equation for the current ration how to use it t analyse the finial data

Answer 27

current ratio=current assets /current liabilities

the value must be higher than 1.5

Question 28

return of capital employed and inventory turn over

Answer 28

operating profit / equity + concurrent liabilities

cost of sale /cost of average stock held

Question 29

payable days and receivables days

Answer 29

payable no of the day it takes to pay suppliers
payable/sales revenue
receivables no of days it takes for the business to collect the payment owed by their customers
receivables/sales revenue

Question 30

gearing ratio

Answer 30

it shows what percentage of the business is long term dept eg 25 to 50 per cent is standard
non current liability / equity + non current liabilities
high gearing may mean they expect the business to be at a growth phase and shareholders may expect higher dividends using the long term debt borrowed but if unable to pay back it can cause the business to be bankrupt

Question 31

what are core competencies

Answer 31

it is the unique feature of the business that allows the business to be competitive ed USP

Question 32

what is kaplan and nortons balance score card model and ellington’s triple bottom line

Answer 32

it looks at customer finance internal business processes and learning and growth
Elkington’s triple bottom line focus on profit people and the planet

Question 33

what are the following economies of scale economies of scope diseconomies of scale and retrenchment

Answer 33

economies of scale are when the improved experience helps the business increase productivity and reduce costs per unit
economies of scope are reduced in cost due to diversification as they already have the production for the product and have brand loyalty eg Cadbury has a different type of chocolate
dis economies of scale are when production increases the cost increases as larger business are harder to manage
retrenchment includes reducing jobs output delayering etc to reduce cost could be due to low demand

Question 34

what is over trading and synergy

Answer 34

overtrading is when a business grows beyond its capability to support the growth
synergy is merges

Question 35

explain griener model of growth

Answer 35

example include leadership crisis control crisis or red tape

Question 36

what is innovation? what are the advantages and disadvantages?

Answer 36

innovation can be product innovation or process innovation these are new ideas that can improve the product this suggests they can use the research and development department to innovate the product by adding new features and using up-to-date technology to meet customer demand, increase product value and demand this suggests they can get a competitive advantage, as a result, they can set price due to having used this is known as price skimming, as a result, they can increase profit and gain chigger market share furthermore being an innovate company like apple may help create a reputation and brand loyalty ac the customers may see apple as the most trustworthy in terms of making sure the latest technology is available to their customers however creating the better and more innovative product can be expensive and if a competitor has already researched and interacted the new technology into their product may mean that the research and development was a waste and can give no competitive advantage
Making production more efficient means that there is less waste material, and as a result, the unit cost decrease this indicates that the business can set the price for the product much lower than their competitors consequently they can this can increase demand especially if the product is price elastic however if the product is a luxury item this strategy may not imply to
business-like blockbuster who was not innovative and dynamic to stay competitive went bankrupt due to the business not keeping up with new technology such as online streaming

Question 37

how does innovation affect functional areas

Answer 37

finance- there may be a higher short-term cost this may mean they need to increase capital through loans for research and development however in the long term the business may get a return investment due to the competitive advance and high demand for their new innovated product
operation- the operations department may need higher budgets due to the new expensive machinery furthermore they would need skilled workers to operate the new machinery, as a result, this can increase costs
marketing- through innovation the business can achieve market objectives scuba s increasing market share through implementing more research and development to understand the needs of the customers and providing them
HR-the business may replace a current worker with new skilled workers that can provide innovative ideas or operate new machinery this can cause redundancy decreasing the employees motivation this can change the overall culture within the business

Question 38

what are the three-way a business can be innovative

Answer 38

kaizen- implementing small changes over a long period of time suggest creating a business culture where the employee has more control over decision-making to get to the root of problems in the organisation consequently this means that they don’t need to spend their capital or time on innovation however these change may only be self-centred on the problem only involving their own satisfaction and not the overall business and its goal of meeting customer needs

intrapreneurs- business like google allow their employees to use their resources to save problems or create innovative ideas this suggest they don’t need extra employee worker to experiment with new ideas however this may depend on how much of an innovative mind they have

benchmarking-is, when business adopt new ideas or similar methods, from other business, this can motivate staff as it is an already working and sucessful idea so there is less risk furthermore implementing these ideas can mean that they don’t give competitors too much of an advantage over them however these ideas can be protected through patents or may to be suitable or achievable due to the culture and resources available to the business

Question 39

name and explain three-way to protect original or innovation ideas

Answer 39

patents-a business can apply for a patent to protect their product or methods from being copied by competitors over a period of time this suggests they can maintain their combative advantage
trademark-they are used to protect logos slogans and or names this means other business could not use their name to scam people or damage their reputation by providing a similar but low-quality product to use their customer base to gain profit
copyright- these are for origami writing music videos