Component 1

Question 1

Explain the meaning of enterprise and SMEs

Question 2

Explain how satisfying needs and wants can give opportunities to entrepreneurs

Question 3

Identify business opportunities

Question 4

Explain the role of the entrepreneur in creating, setting up, running and developing a business

Question 5

Explain the financial and non-financial motives of entrepreneurs

Question 6

Explain the characteristics and skills of entrepreneurs

Question 7

Explain the importance of entrepreneurs and SMEs to the primary, secondary and tertiary sectors of the UK economy

Question 8

Evaluate the impact of entrepreneurs and SMEs on businesses and the economy

Question 9

Identify the various stakeholders who are affected by a business

Question 10

Explain the purpose and main components of a business plan

Question 11

Evaluate the importance of a business plan

Question 12

Identify the main sources of information and guidance available to entrepreneurs

Question 13

Explain what is meant by a market and competition

Question 14

Identify different types of market, including local/global, mass/niche, trade/consumer, product/service and seasonal

Question 15

Analyse and interpret market data, including market size, market share and market trends

Question 16

Explain what is meant by market segmentation

Question 17

Explain how markets are segmented

Question 18

Evaluate the importance and impact of segmentation to a business and its customers

Question 19

Understand that different markets have differing degrees of competition, ranging from perfect competition to monopoly

Question 20

Explain the features of perfect competition, monopolistic competition, oligopoly and monopoly and their impact on business behaviour

Question 21

Understand the reasons why consumers sometimes need protection from exploitation from businesses

Question 22

Explain what is meant by demand, supply and equilibrium

Question 23

Understand the importance of demand and supply in the market

Question 24

Explain the factors that lead to a change in demand and supply

Question 25

Explain how a change in demand and supply can impact on price and quantity

Question 26

Construct and interpret demand and supply diagrams

Question 27

Understand the factors that cause the demand and supply curves to shift and the effect this has on equilibrium price and quantity

Question 28

Analyse and evaluate factors which affect demand and supply and equilibrium

Question 29

Understand the concept of price and income elasticity of demand (learners are not required to do calculations)

Question 30

Explain the nature of inferior, normal and luxury goods

Question 31

Explain what is meant by market research

Question 32

Explain the value of carrying out market research

Question 33

Distinguish between primary and secondary market research

Question 34

Distinguish between qualitative and quantitative data

Question 35

Explain the different methods of primary and secondary research available to businesses

Question 36

Explain the issues involved in selecting the most appropriate method of market research

Question 37

Evaluate the use of the different methods of primary and secondary research

Question 38

Interpret and evaluate quantitative and qualitative research

Question 39

Explain what is meant by sampling

Question 40

Explain the difference between random and quota sampling methods

Question 41

Understand the need to avoid bias in market research

Question 42

Evaluate the usefulness of sampling for a business and its stakeholders

Question 43

Explain the difference between the private and public sector

Question 44

Explain the aims of private sector businesses including survival, growth and profit

Question 45

Explain the aims of the public sector and its role in providing goods and services

Question 46

Evaluate the roles of the public and private sectors in the provision of goods and services

Question 47

Explain the legal structure of different private sector business organisations including sole traders, partnerships, private and public limited companies

Question 48

Explain what is meant by unlimited and limited liability

Question 49

Explain the advantages and disadvantages of choosing different legal structures for a business

Question 50

Evaluate the factors affecting the choice of the legal structure of a business

Question 51

Explain the main features of not-for-profit organisations including social enterprises, charities, co-operatives and societies

Question 52

Evaluate the importance and impact of the legal structure for the various stakeholders for a business

Question 53

Explain the factors that need to be considered when locating a new business

Question 54

Analyse these factors in relation to the needs of the business

Question 55

Evaluate the choice of different locations for a new business

Question 56

Explain the sources of finance available to entrepreneurs and SMEs

Question 57

Analyse the advantages and disadvantages of each source of finance

Question 58

Evaluate different sources of finance available to entrepreneurs and SMEs

Question 59

Explain what is meant by costs, revenue and profit

Question 60

Identify costs to a business, including fixed, variable, semi-variable, direct, indirect/overhead costs and total costs

Question 61

Calculate revenue, costs and profit

Question 62

Interpret revenue, costs and profit calculations

Question 63

Evaluate the impact of costs, revenue and profit on a business and its stakeholders

Question 64

Explain what is meant by contribution

Question 65

Explain what is meant by break-even

Question 66

Calculate contribution and understand its application to the calculation of break-even

Question 67

Construct and interpret break-even charts, including the margin of safety

Question 68

Illustrate on a break-even chart the effects of changes in costs and revenue

Question 69

Analyse how changes in costs and/or revenue can affect break-even (‘what-if’ analysis)

Question 70

Evaluate the usefulness of break-even to a business and its stakeholders

Question 71

Explain the purpose of marketing and its importance to different types of business organisation in different situations

Question 72

Explain what is meant by market orientation, product orientation and asset-led marketing

Question 73

Explain what is meant by the marketing mix

Question 74

Explain what is meant by product, product portfolio, brand, unique selling point (USP) and differentiation

Question 75

Evaluate the importance of having the right product(s) to a business and its stakeholders

Question 76

Explain what is meant by the product life cycle

Question 77

Explain the stages in the product life cycle

Question 78

Explain what is meant by an extension strategy

Question 79

Construct and interpret a product life cycle diagram including extension strategies

Question 80

Evaluate the impact of extension strategies on a business

Question 81

Explain the relationship between the product life cycle and cash flow

Question 82

Analyse product life cycles and extension strategies for different businesses, products and markets

Question 83

Evaluate the use of the product life cycle to a business and its stakeholders

Question 84

Explain how the Boston matrix can be used to manage a product portfolio

Question 85

Evaluate the use of the Boston matrix to a business and its stakeholders

Question 86

Explain the different strategies used by businesses to determine the appropriate price for a product including penetration, skimming, cost-plus, competitive, psychological and contribution

Question 87

Understand how different types of business organisations in different situations will use different pricing strategies

Question 88

Evaluate the importance for a business of selecting the most appropriate pricing strategy

Question 89

Evaluate the impact of pricing decisions on a business and its stakeholders

Question 90

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