other things i should know

What are the three AQA Business assessment objectives?

AO1: Knowledge and understanding. AO2: Application to a business context. AO3: Analysis and evaluation.

What is AO1?

Showing that you know business terms, concepts and ideas.

What is AO2?

Applying your knowledge to the specific business in the case study.

What is AO3?

Explaining consequences and making supported judgements or conclusions.

What does application mean in a Business exam?

Using specific information from the case study, such as the business's name, products, employees, costs or customers.

What is a chain of analysis?

A sequence showing how a decision causes an effect, which then leads to a further business consequence.

How do you develop a chain of analysis?

Use a point, explain why it happens, then explain the further effect on the business.

What is evaluation?

Considering different factors and reaching a justified conclusion about what is best for a business.

What is a justified conclusion?

A final decision supported by business evidence and an explanation of why that option is most suitable.

What should you do when a question says explain?

Make a clear point and develop it by explaining why or how it affects the business.

What should you do when a question says analyse?

Explain the effects of a decision in a developed chain of reasoning, using the business context.

What should you do when a question says assess?

Consider the importance or effects of an issue and reach a supported judgement.

What should you do when a question says recommend?

Choose a suitable option, apply it to the case study and justify why it is better than alternatives.

How should you answer a calculation question?

Write the formula, substitute the figures, calculate carefully and include the correct unit or percentage.

How should you use a case study?

Identify relevant details and use them to make your explanation specific to that business.

Why should you avoid generic answers?

They may show knowledge but fail to apply it to the specific business in the question.

What is labour productivity?

The output produced per employee over a given period.

How do you calculate labour productivity?

Labour productivity = total output ÷ number of employees.

A business makes 800 products using 20 employees. Calculate labour productivity.

800 ÷ 20 = 40 products per employee.

What is percentage change?

The change in a value expressed as a percentage of the original value.

How do you calculate percentage change?

Percentage change = (change ÷ original value) × 100.

Sales increase from £2,000 to £2,500. Calculate the percentage increase.

Increase = £500. Percentage increase = (£500 ÷ £2,000) × 100 = 25%.

What is an average?

A typical value calculated by dividing the total by the number of values.

How do you calculate an average?

Average = total of all values ÷ number of values.

A business sells 120, 150 and 180 products over three days. Calculate average daily sales.

(120 + 150 + 180) ÷ 3 = 150 products per day.

How do you calculate revenue?

Revenue = selling price × quantity sold.

A business sells 250 products at £12 each. Calculate revenue.

250 × £12 = £3,000.

How do you calculate profit?

Profit = total revenue − total costs.

A business has revenue of £9,000 and total costs of £6,400. Calculate profit.

£9,000 − £6,400 = £2,600.

How do you calculate total costs?

Total costs = fixed costs + variable costs.

A business has fixed costs of £2,000 and variable costs of £3,500. Calculate total costs.

£2,000 + £3,500 = £5,500.

How can you explain an increase in productivity?

Higher productivity may allow more output to be produced using the same number of employees, potentially reducing average costs and increasing profit.

How can you explain the effect of better employee training?

Training can improve employees' skills, helping them work more efficiently and make fewer mistakes, which may increase productivity and reduce waste.

How can you explain the effect of good customer service?

It may increase customer satisfaction, encouraging repeat purchases and increasing sales revenue.

How can you explain the effect of reliable suppliers?

Reliable deliveries help prevent production delays, allowing the business to meet customer orders and protect its reputation.

How can you explain the effect of increased competition?

Customers have more alternatives, so a business may need to improve quality or lower prices, which could increase costs or reduce profit margins.

How can you explain the effect of higher interest rates on a business with a loan?

Loan repayments may increase, raising costs and reducing the money available for investment or expansion.

How can you explain the effect of higher wages on a business?

Higher wages increase employment costs, potentially reducing profit unless productivity or sales revenue also increases.

How can you explain the effect of a flat organisational structure?

Fewer management levels may speed up communication and reduce management costs, although managers may have to supervise more employees.

How can you explain the effect of flow production?

Continuous production can increase output and reduce average costs, potentially allowing the business to charge competitive prices or increase profit.

How can you explain the effect of quality assurance?

Preventing defects throughout production may reduce waste and complaints, improving customer satisfaction and lowering costs.

How do you answer a 1-mark question?

Give one clear, correct answer. Do not waste time writing a long paragraph.

How do you answer a 2-mark State or Identify question?

Give two separate correct points if the question asks for two, or follow the exact wording of the question.

How do you answer a 3-mark Explain one question?

Make one point and develop it by explaining why or how it benefits or affects the business.

What structure can you use for a 3-mark Explain question?

Point → Because → Business effect.

How do you answer a 4-mark Explain one question?

Make one clear point, explain why it matters, apply it to the case study and explain the consequence for the business

What structure can you use for a 4-mark Explain one question?

Point → Explanation → Case-study application → Consequence.

How do you answer a 6-mark Analyse question?

Make a relevant point, apply it to the case study and develop a chain of reasoning showing the consequences for the business.

What structure can you use for a 6-mark Analyse question?

Point → Application → Explanation → Further consequence.

What is a chain of reasoning in a 6-mark answer?

A sequence of linked effects, such as better training → fewer mistakes → less waste → lower costs → potentially higher profit.

How do you answer a 9-mark Evaluate question?

Develop relevant arguments, apply them to the case study, consider another side or option where relevant, and finish with a justified conclusion.

What structure can you use for a 9-mark question?

Argument one with development → Argument two or drawback with development → Justified conclusion.