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Eduqas A-Level Business A510QS
Enterprise, Business Plans and Location
Topic overviewEnterprise, entrepreneurs and SMEsNeeds, wants and spotting a business opportunityThe role of the entrepreneur in setting up and running a businessFinancial and non-financial motives of entrepreneursCharacteristics and skills of entrepreneursEntrepreneurs, SMEs and the sectors of the UK economyStakeholders and their interestsBusiness plans and sources of adviceChoosing a business location
Markets, Demand and Market Research
Topic overviewMarkets and competitionTypes of marketMarket size, market share and market trendsMarket segmentationMarket structures and degrees of competitionConsumer protectionDemand and the factors that shift itSupply and the factors that shift itEquilibrium price and shifts in the marketPrice and income elasticity of demandPrimary and secondary market researchQualitative and quantitative dataSampling and bias in market research
Business Structure and Sources of Finance
Topic overviewThe private sector and the public sectorAims of private sector businessesSole traders and partnershipsPrivate and public limited companiesUnlimited and limited liabilityChoosing a legal structureNot-for-profit organisationsInternal and personal sources of start-up financeBorrowing, equity and grants for a small business
Revenue, Costs and Break-Even
Topic overviewRevenue, costs and profitFixed, variable and semi-variable costsDirect costs, indirect costs and overheadsCalculating revenue, costs and profitContribution and its usesCalculating the break-even pointBreak-even charts and the margin of safetyWhat-if analysis of changes in costs and revenueThe usefulness and limits of break-even
Marketing and the Marketing Mix
Topic overviewThe purpose of marketing and market orientationThe marketing mix and the four PsProduct, brand, USP and differentiationThe product life cycleExtension strategiesThe product life cycle and cash flowThe Boston matrixPricing strategiesChoosing the right pricing strategyPromotion above the line and below the linePlace and distribution channelsThe marketing mix in different contextsNew technology in marketing
Financial Planning and Accounts
Topic overviewThe role of the finance departmentBudgets and the purpose of budgetingThe benefits and drawbacks of budgetsInternal sources of financeExternal sources of financeChoosing the right source of financeCash flow and cash flow forecastsConstructing and interpreting a cash flow forecastCash flow problems and how to improve cash flowThe income statement, gross profit and net profitGross and net profit margins
People in Organisations
Topic overviewThe role of the human resource departmentThe flexible workforceNew technology and changing working patternsWorkforce planningThe recruitment process, job analysis and job descriptionsInternal and external recruitmentMethods of selecting employeesMethods of trainingThe value of training to a businessAppraisal and its methodsMeasuring workforce performanceOrganisational structures and the chain of commandDelegation, empowerment and delayering
Motivation, Management and Employee Relations
Topic overviewMotivation and the benefits of a motivated workforceTaylor and scientific managementMayo and the Hawthorne studiesMaslow's hierarchy of needsHerzberg's two factor theoryExpectancy theories of Vroom, Porter and LawlerFinancial methods of motivationNon-financial methods of motivationManagement, management by objectives and Theory X and YLeadership and leadership stylesLeadership theories and choosing a styleEmployment rights, contracts and equal opportunitiesTrade unions, industrial conflict and dispute resolution
Operations Management
Topic overviewOperations management and added valueJob, batch and flow productionProductivity and how to raise itCapacity utilisationTechnology in operations: IT, CAD, CAM and roboticsLean production, kaizen and just-in-timeQuality control and quality assuranceTotal quality managementPurchasing, suppliers and methods of stock controlStock control diagrams and stock levelsInnovation, research and developmentInternal and external economies of scaleDiseconomies of scale and the survival of small firms
Data and Market Analysis
Topic overviewPresenting and interpreting business dataIndex numbers and comparing figures over timeCalculating price elasticity of demandInterpreting price elasticity and its effect on revenueIncome elasticity of demandSales forecasting and the reliability of a forecastMoving averages and time-series analysisCorrelation, scatter graphs and extrapolationQualitative forecasting techniques
Analysing Business Performance
Topic overviewBudget variances and how to calculate themAnalysing and evaluating budget variancesThe balance sheet and how it is constructedWorking capital, capital employed and depreciationLiquidity ratios: the current ratio and the acid testReturn on capital employed and gearingComparing accounts over time and between businessesEvaluating the financial position of a businessNon-financial measures of performance and vision statements
Aims, Objectives and Strategy
Topic overviewAims, objectives and SMART targetsMission and vision statementsStrategy, tactics and corporate plansSWOT analysisPorter's Five ForcesThe Ansoff matrixOrganic growthExternal growth: mergers and takeoversHorizontal and vertical integrationFranchising as a method of growthRationalisation and relocationOutsourcing production
Decision-Making and Investment Appraisal
Topic overviewTypes of business decisionScientific and intuitive decision-makingDecision trees: constructing and calculatingEvaluating decision tree analysisCritical path analysis: building the networkInterpreting and evaluating critical path analysisCost benefit analysisPayback and the average rate of returnDiscounted cash flow and net present valueChoosing between investmentsSpecial orders
Change and Risk Management
Topic overviewCauses of change in a businessInternal and external causes of changePlanned and unplanned changeEffects of change on a businessManaging change and Storey's four approachesResistance to change and how it is overcomeEvaluating change and its impact on stakeholdersTypes of risk a business facesRisk assessment, prevention and insuranceContingency planning and crisis management
PEST Factors and the External Environment
Topic overviewPolitical factors and the role of governmentTaxation and subsidiesFiscal and monetary policyEconomic growth, GDP and the business cycleInflation and how it is measuredInterest rates and exchange ratesUnemploymentDemographic changeSocial and cultural changeTechnological factors and automation
Ethical, Legal and Environmental Factors
Topic overviewBusiness ethics and ethical objectivesEthical issues facing a businessCorporate social responsibilityEthics, profitability and stakeholder viewsCompany law, intellectual property and pay lawEmployment, discrimination and health and safety lawConsumer, competition and data protection lawEnvironmental costs of business activityControlling environmental costs and business responses
International Trade, Globalisation and the European Union
Topic overviewInternational trade and why it happensFree trade and protectionismTrading blocs and the single marketEntering new international marketsGlobalisation and its causesThe effects of globalisation on businessStrategies for global growthGlocalisation and adapting to local marketsMultinational companiesThe European Union and the single European marketThe euro, the Eurozone and membership
Business Structure and Sources of Finance
- 9 subtopics
- 27 things to know
- Component 1
What Business Structure and Sources of Finance covers
Business Structure and Sources of Finance is examined in Component 1, Business Opportunities and Functions, and can be drawn on in the synoptic Component 3. It covers the private sector and the public sector, aims of private sector businesses, sole traders and partnerships, private and public limited companies, unlimited and limited liability, choosing a legal structure, not-for-profit organisations, internal and personal sources of start-up finance and borrowing, equity and grants for a small business.
Where it is assessed
Component 1
Business Opportunities and Functions.
Check the Eduqas specification ↗The 9 subtopics
Each one has its own page.
- The private sector and the public sectorPrivate sector, public sector and public corporation.Open →
- Aims of private sector businessesThree common aims of a private sector business, profit maximisation and why a business might pursue growth rather than short-term profit.Open →
- Sole traders and partnershipsTerm sole trader, two advantages of trading as a sole trader and two disadvantages of trading as a sole trader.Open →
- Private and public limited companiesTerm private limited company, term public limited company and memorandum of association.Open →
- Unlimited and limited liabilityTerm unlimited liability, term limited liability and link between limited liability and separate legal personality.Open →
- Choosing a legal structureHow the cost of setting up differs between structures, why a franchisee often trades as a limited company and changing legal structure.Open →
- Not-for-profit organisationsNot-for-profit organisation, term social enterprise and community interest company.Open →
- Internal and personal sources of start-up financeOne drawback of funding a start-up entirely from personal savings, one risk of borrowing from family and friends and one drawback of raising money by selling assets.Open →
- Borrowing, equity and grants for a small businessBank loan and how is it repaid, bank overdraft and one risk of relying heavily on trade credit.Open →
What you need to know
Answer each one before you reveal it.
Your recallNot started
Key term
What is a public limited company, and what does incorporation give it?
Key term
What is meant by the private sector?
Key term
Name three common aims of a private sector business.
Key term
Define the term unlimited liability.
Key term
Name five factors that influence the choice of legal structure for a business.
Key term
What is meant by a not-for-profit organisation?
Key term
Why do most entrepreneurs use their own savings to start a business?
Key term
What is a bank loan and how is it repaid?
Key term
What is meant by the public sector?
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Why is survival often the first aim of a new business?
Key term
Define the term sole trader.
Key term
Define the term private limited company.
Key term
Define the term limited liability.
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Why does the need to limit personal risk push an owner towards incorporation?
Key term
Define the term social enterprise.
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State one drawback of funding a start-up entirely from personal savings.
Evaluation
State one advantage and one disadvantage of a bank loan for a small firm.
Key term
Name three services usually provided by the UK public sector.
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What is meant by profit maximisation?
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Does a sole trader have to work alone?
Key term
Define the term public limited company.
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Which business forms carry unlimited liability?
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How does the desire for control affect the choice of structure?
Numbers
What is a community interest company?
Key term
Why is owner's capital treated as equity rather than as a debt?
Key term
What is a bank overdraft?
Take Business Structure and Sources of Finance further
The same content, four other ways.
Commonly confused
Pairs that lose marks when they are blurred together.
Privatisation vs Nationalisation
Privatisation: moving a business from state ownership into private hands. Nationalisation: moving it the opposite way.
Leasing vs Hire purchase
Leasing: renting the equipment for a regular payment. Hire purchase: paying in instalments, with ownership passing after the final payment.
Debt factoring vs Trade credit
Debt factoring: selling unpaid invoices to raise cash immediately. Trade credit: delaying payment to a supplier for an agreed period.
Questions from this topic
Each one with the model answer underneath.
- 1
What is meant by the private sector?
Model answer
The private sector is made up of businesses owned and run by individuals or groups of shareholders. Profit rather than public service is the usual driving aim.
- 2
What is meant by the public sector?
Model answer
The public sector consists of organisations owned and funded by central or local government. Taxation rather than shareholder investment provides most of the money.
- 3
Name three services usually provided by the UK public sector.
Model answer
The National Health Service, state schools and the police are all provided by the UK public sector. Most of the money comes from general taxation.
- 4
Explain the main difference in aim between a private sector firm and a public sector organisation.
Model answer
A private sector firm normally aims to make a profit for its owners. A public sector organisation aims to provide a service to the whole community.
- 5
What is meant by privatisation?
Model answer
Privatisation is the transfer of a business or service from state ownership into private ownership. British Telecom and British Gas were both privatised during the 1980s.
- 6
What is meant by nationalisation?
Model answer
Nationalisation is the transfer of a private sector business into state ownership. Governments use nationalisation to protect a service judged too important to fail.
What is inside Levo
Six ways to work the same material.
Business Structure and Sources of Finance revision questions
- What does Business Structure and Sources of Finance cover in Eduqas A-Level Business?
- 9 subtopics: the private sector and the public sector, aims of private sector businesses, sole traders and partnerships, private and public limited companies, unlimited and limited liability, choosing a legal structure, not-for-profit organisations, internal and personal sources of start-up finance and borrowing, equity and grants for a small business. Each one has its own page with questions and model answers.
- How is Business Structure and Sources of Finance organised?
- By the Eduqas A510QS specification, subtopic by subtopic, so it matches the order you are taught it in.
Every question in Business Structure and Sources of Finance, on a schedule.
Attempt a question from memory, write the correct version, then attempt it again. Levo records the jump between your first attempt and your last, and brings each question back on the day you are due to forget it.
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