Key term
WJEC A-Level Business 601-5238-2
Enterprise and Starting a Business
Markets and Market Research
Topic overviewTypes of marketMarket size, market share and market trendsMarket segmentationThe degree of competition in a marketPerfect competition and monopolistic competitionOligopoly and monopolyConsumer protectionDemand and the demand curveSupply and the supply curveMarket equilibrium and changes in price and quantityPrice and income elasticity of demandInferior, normal and luxury goodsThe value of market researchPrimary market researchSecondary market researchQualitative and quantitative dataSampling and avoiding bias
Marketing
Topic overviewMarket orientation, product orientation and asset-led marketingThe marketing mixProduct and the product portfolioBranding, 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 contexts and global marketingNew technology in marketing
People in Business
Topic overviewThe flexible workforceNew technology and changing working practicesWorkforce planningThe recruitment process, job analysis and job descriptionsInternal and external recruitmentMethods of selectionTrainingAppraisalLabour productivity, absenteeism and labour turnoverOrganisational design and structuresDelegation, empowerment and delayeringMotivation theoriesFinancial and non-financial methods of motivationManagement and management by objectivesLeadership styles and theoriesEmployment rights, duties and equal opportunitiesTrade unions, conflict and dispute resolution
Operations Management
Topic overviewAdded valueJob, batch and flow productionChoosing the right method of productionProductivityCapacity utilisationNew technology in operationsLean production and kaizenJust-in-time and cell productionQuality control and quality assuranceTotal quality managementStock control and stock control diagramsPurchasing and working with suppliersInnovation, research and developmentInternal economies of scaleExternal economies of scaleDiseconomies of scale and the survival of small firms
Business Finance and Accounts
Topic overviewInternal sources of financeLoans, overdrafts and trade creditShare capital and venture capitalLeasing and debt factoringChoosing an appropriate source of financeFinance for entrepreneurs and SMEs in WalesRevenue, costs and profitTypes of costContribution and break-evenBreak-even charts and the margin of safetyBudgets and budgetingCash flow forecastingImproving cash flowThe income statementGross and net profit margins
Business Analysis and Decision-Making
Topic overviewPrice and income elasticity of demandSales forecasting and its reliabilityMoving averages and time-series analysisCorrelation, scatter graphs and extrapolationPresenting and interpreting data: pie charts, histograms and index numbersQualitative forecasting techniquesBudgets and budget variancesThe balance sheetWorking capital, capital employed and depreciationLiquidity ratios: the current ratio and the acid testReturn on capital employed and gearingInterpreting and comparing company accountsNon-financial measures and vision statementsDecision treesCritical path analysisCost benefit analysis and scientific decision-makingPayback period and average rate of returnNet present value and discounted cash flowSpecial orders and contribution
Strategy and Implementation
Topic overviewAims and objectivesSMART objectivesMission and vision statementsCorporate, divisional and functional strategyStrategy, tactics and corporate plansSWOT analysisPorter's Five ForcesThe Ansoff matrixOrganic growthMergers and takeoversHorizontal and vertical integrationFranchising as a method of growthLocation and relocation decisionsRationalisation and outsourcing production
Managing Change and Risk
Topic overviewInternal and external causes of changePlanned and unplanned changeThe effects of change on a businessManaging change effectivelyStorey's four approaches to managing changeResistance to changeLewin's three step processOrganisational culture and leadership in changeEvaluating the management of changeThe risks a business facesRisk assessment and preventative actionInsurable and uninsurable risksContingency planning and crisis management
The External Environment
Enterprise and Starting a Business
- 8 subtopics
- 24 things to know
- AS Unit 1
What Enterprise and Starting a Business covers
Enterprise and Starting a Business is examined in Unit 1, Business Opportunities, and again in Units 2 and 4, which assess the whole of the content. It covers enterprise and the entrepreneur, stakeholders in a business, business plans and sources of support, legal structures of business, the public and private sectors, business location, sources of finance for a new business and business revenue, costs and profit.
The 8 subtopics
Each one has its own page.
- Enterprise and the entrepreneurFour roles of the entrepreneur in a new business, five characteristics commonly associated with successful entrepreneurs and four skills an entrepreneur needs.Open →
- Stakeholders in a businessSix stakeholder groups in a typical business, conflict between two stakeholder groups and conflict between a business's customers and its owners.Open →
- Business plans and sources of supportWhat goes into a business plan and why lenders want one, and the support available to new firms, including Business Wales and the Development Bank of Wales.Open →
- Legal structures of businessSole trader, unlimited liability and deed of partnership.Open →
- The public and private sectorsThree aims of a private sector business, public sector and merit good.Open →
- Business locationSix factors affecting where a business locates, bulk-reducing industry and bulk-increasing industry.Open →
- Sources of finance for a new businessThree sources of finance available to a new entrepreneur, bank loan and trade credit.Open →
- Business revenue, costs and profitFixed costs and give two examples, variable costs and give two examples and break-even point.Open →
What you need to know
Answer each one before you reveal it.
Your recallNot started
Evaluation
Evaluate the roles of the two sectors in providing goods and services.
Evaluation
Evaluate the choice of location for a new independent café.
Key term
Define enterprise.
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Define a stakeholder.
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What is a business plan?
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Distinguish internal from external sources of finance.
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Define revenue, and give the formula.
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Distinguish a need from a want.
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Distinguish an internal stakeholder from an external one.
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Name six main components of a business plan.
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What is a sole trader?
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Name three aims of a private sector business.
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Name six factors affecting where a business locates.
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Distinguish short-term from long-term finance.
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Define fixed costs and give two examples.
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How does satisfying needs and wants create business opportunities?
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Name six stakeholder groups in a typical business.
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What financial forecasts should a business plan contain?
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Define unlimited liability.
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What is the public sector?
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What is meant by a bulk-reducing industry, and where does it locate?
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Name three sources of finance available to a new entrepreneur.
Key term
Define variable costs and give two examples.
Take Enterprise and Starting a Business further
The same content, four other ways.
Commonly confused
Pairs that lose marks when they are blurred together.
Need vs Want
Need: something essential for survival, such as food, water or shelter. Want: Something desired but not essential for survival, so a person can do without it.
Unlimited liability vs Limited liability
Unlimited liability: the owner is personally responsible for every debt the business runs up, so personal assets can be taken to meet them. Limited liability: The owner's loss cannot exceed the amount they invested, and personal assets are protected from the debts of the business.
Sole trader vs Private limited company
Sole trader: a business owned and controlled by one person, who keeps all the profit, bears all the risk and is the business in law. Private limited company: A separate legal entity owned by shareholders whose loss is capped at what they invested, and which must file accounts publicly.
Questions from this topic
Each one with the model answer underneath.
- 1
Define enterprise.
Model answer
Enterprise is the willingness to take a risk in organising the other factors of production in order to make a profit.
- 2
What is an entrepreneur?
Model answer
An entrepreneur is a person who takes the financial risk of setting up and running a business, bringing together the resources needed to supply a good or service.
- 3
Distinguish a need from a want.
Model answer
A need is something essential for survival such as food, water or shelter; a want is something desired but not essential.
- 4
How does satisfying needs and wants create business opportunities?
Model answer
An unmet need or want is a gap in the market, and an entrepreneur who identifies one before others can supply it profitably.
- 5
Give three ways an entrepreneur might identify a business opportunity.
Model answer
Spotting a gap in an existing market, responding to a change in technology, regulation or lifestyle, and improving on a competitor's product or service.
- 6
Name four roles of the entrepreneur in a new business.
Model answer
Creating the idea, raising the finance and setting the business up, running its day-to-day operations, and developing it as it grows.
What is inside Levo
Six ways to work the same material.
Enterprise and Starting a Business revision questions
- What does Enterprise and Starting a Business cover in WJEC A-Level Business?
- 8 subtopics: enterprise and the entrepreneur, stakeholders in a business, business plans and sources of support, legal structures of business, the public and private sectors, business location, sources of finance for a new business and business revenue, costs and profit. Each one has its own page with questions and model answers.
- How is Enterprise and Starting a Business organised?
- By the WJEC 601-5238-2 specification, subtopic by subtopic, so it matches the order you are taught it in.
Every question in Enterprise and Starting a Business, 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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