A Level Business – Complete Revision Notes

These flashcards cover key concepts and terminology from the A Level Business course, aiding in exam preparation.

Factors of Production

The resources used in the production of goods and services, including land, labour, capital, and enterprise.

Opportunity Cost

The next best alternative foregone when making a decision.

Specialisation

The process of concentrating on a specific task or skill to increase efficiency and productivity, though it may lead to worker boredom.

Added Value

The difference between the selling price of a product and the cost of bought-in materials, which businesses aim to increase through branding, quality, and marketing.

Sole Trader

A business owned by one person, which is simple to set up but has unlimited liability.

Partnership

A business owned by 2–20 people, allowing for shared decision-making but with potential for conflict.

Private Limited Company (Ltd)

A business with a separate legal identity, limited liability, and shares sold privately.

Public Limited Company (PLC)

A company whose shares are sold to the public on the stock exchange, allowing for large capital but subject to strict regulations.

Franchise

A business arrangement where a franchisee buys the rights to operate under an established brand.

Profit Maximisation

The objective of increasing profits as much as possible.

Revenue Maximisation

The objective of increasing sales revenue.

Growth

The objective of expanding the size of a firm through increased sales, market share, or additional locations.

Corporate Social Responsibility (CSR)

The commitment of businesses to behave ethically and contribute positively to society.

Market Research

The process of gathering information about consumers, which can be classified as primary or secondary research.

Market Segmentation

The division of consumers into groups based on demographics, income, lifestyle, etc.

Marketing Mix (4Ps)

The combination of Product, Price, Place, and Promotion strategies used to market a product.

Product Life Cycle

The stages a product goes through: introduction, growth, maturity, and decline.

Lean Production

A production method focused on reducing waste and improving efficiency.

Quality Control

The process of checking products during production to ensure they meet quality standards.

Capacity Utilisation

A measure of how much of a firm's potential output is being used.

Human Resource Management (HRM)

The management of employees within an organisation to enhance their effectiveness.

Motivation Theories

Concepts explaining how to motivate employees, including Maslow's hierarchy of needs and Herzberg's motivators/hygiene factors.

Sources of Finance

The means by which businesses acquire funding, which can be internal (retained profit) or external (loans, shares).

Break-even Point

The level of sales at which total revenue equals total costs.

Cash Flow

The movement of money in and out of a business.

Liquidity Ratios

Financial ratios that measure a company's ability to pay its short-term debts.

SWOT Analysis

A strategic planning tool used to identify strengths, weaknesses, opportunities, and threats of a business.

PEST Analysis

An analytical framework for assessing the political, economic, social, and technological factors affecting a business.

Ansoff Matrix Strategies

Strategies for growth including market penetration, market development, product development, and diversification.

Economies of Scale

Cost advantages that arise when output increases, allowing firms to reduce average costs.

Globalisation

The process of businesses operating on an international scale, leading to broader markets and various challenges.

Multinational Corporations (MNCs)

Companies that operate in multiple countries around the world.