Key term
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
Enterprise, Business Plans and Location
- 9 subtopics
- 27 things to know
- Component 1
What Enterprise, Business Plans and Location covers
Enterprise, Business Plans and Location is examined in Component 1, Business Opportunities and Functions, and can be drawn on in the synoptic Component 3. It covers enterprise, entrepreneurs and SMEs, needs, wants and spotting a business opportunity, the role of the entrepreneur in setting up and running a business, financial and non-financial motives of entrepreneurs, characteristics and skills of entrepreneurs, entrepreneurs, SMEs and the sectors of the UK economy, stakeholders and their interests, business plans and sources of advice and choosing a business location.
Where it is assessed
Component 1
Business Opportunities and Functions.
Check the Eduqas specification ↗The 9 subtopics
Each one has its own page.
- Enterprise, entrepreneurs and SMEsTerm enterprise, term entrepreneur and why an entrepreneur is described as a risk bearer.Open →
- Needs, wants and spotting a business opportunityNeed and a want, gap in the market and three ways an entrepreneur can spot a business opportunity.Open →
- The role of the entrepreneur in setting up and running a businessEntrepreneur organising the factors of production, entrepreneur's role in raising finance and entrepreneur's role as an innovator.Open →
- Financial and non-financial motives of entrepreneursThree financial motives for starting a business, three non-financial motives for starting a business and profit as a motive.Open →
- Characteristics and skills of entrepreneursFour characteristics commonly found in successful entrepreneurs, characteristic and a skill of an entrepreneur and why risk-taking is a necessary characteristic.Open →
- Entrepreneurs, SMEs and the sectors of the UK economyPrimary sector, secondary sector and tertiary sector.Open →
- Stakeholders and their interestsTerm stakeholder, internal and an external stakeholder and six stakeholder groups in a typical business.Open →
- Business plans and sources of adviceBusiness plan and business incubator.Open →
- Choosing a business locationBusiness rates, proximity to the market and bulk-reducing industry.Open →
What you need to know
Answer each one before you reveal it.
Your recallNot started
Key term
What do the initials SME stand for, and where are the size boundaries drawn?
Key term
Distinguish between a need and a want.
Process
What does the entrepreneur do at the creating stage of a business?
Key term
Name three financial motives for starting a business.
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Name four characteristics commonly found in successful entrepreneurs.
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What is the primary sector?
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Define the term stakeholder.
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What is a business plan?
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Name six factors to consider when choosing a location for a new business.
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How does satisfying a need create a business opportunity?
Process
What does the entrepreneur do at the setting up stage?
Key term
Name three non-financial motives for starting a business.
Key term
Distinguish between a characteristic and a skill of an entrepreneur.
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What is the secondary sector?
Key term
Distinguish between an internal and an external stakeholder.
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Name three purposes of a business plan.
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Why does the cost of premises matter to a new business?
Key term
Define the term enterprise.
Key term
How does satisfying a want create a business opportunity?
Key term
What does the entrepreneur do once the business is trading?
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What is meant by profit as a motive?
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Explain why risk-taking is a necessary characteristic.
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What is the tertiary sector?
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Name six stakeholder groups in a typical business.
Key term
What goes in the executive summary of a business plan?
Key term
What are business rates?
Take Enterprise, Business Plans and Location further
The same content, four other ways.
Commonly confused
Pairs that lose marks when they are blurred together.
Characteristic of an entrepreneur vs Skill of an entrepreneur
Characteristic of an entrepreneur: a personal quality such as determination. Skill of an entrepreneur: a learned ability such as bookkeeping.
Questions from this topic
Each one with the model answer underneath.
- 1
Define the term enterprise.
Model answer
Enterprise is the willingness to take a financial risk in order to set up and run a business. Spotting an opportunity and organising resources to exploit it is part of the same idea.
- 2
Define the term entrepreneur.
Model answer
An entrepreneur is a person who takes the risk of setting up and running a business. Profit is the reward if the venture succeeds.
- 3
What do the initials SME stand for?
Model answer
The initials SME stand for small and medium-sized enterprise. Employee numbers are the usual basis for the classification in the UK.
- 4
How many employees does a medium-sized enterprise have under the usual UK definition?
Model answer
A medium-sized enterprise employs between 50 and 249 people. A firm of 250 or more is classed as large.
- 5
How many employees does a small enterprise have?
Model answer
A small enterprise employs between 10 and 49 people. A micro business employs fewer than ten.
- 6
What share of UK private sector businesses are SMEs?
Model answer
SMEs make up about 99.9% of the UK private sector business population. Government estimates in the mid-2020s put the total at around 5.5 million firms.
What is inside Levo
Six ways to work the same material.
Enterprise, Business Plans and Location revision questions
- What does Enterprise, Business Plans and Location cover in Eduqas A-Level Business?
- 9 subtopics: enterprise, entrepreneurs and smes, needs, wants and spotting a business opportunity, the role of the entrepreneur in setting up and running a business, financial and non-financial motives of entrepreneurs, characteristics and skills of entrepreneurs, entrepreneurs, smes and the sectors of the uk economy, stakeholders and their interests, business plans and sources of advice and choosing a business location. Each one has its own page with questions and model answers.
- How is Enterprise, Business Plans and Location organised?
- By the Eduqas A510QS specification, subtopic by subtopic, so it matches the order you are taught it in.
Every question in Enterprise, Business Plans and Location, 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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