AQA GCSE Business Course Companion

A set of flashcards covering essential terms and concepts in business for the AQA GCSE Business course.

What is a business?

An organisation that exists to produce goods and services on a commercial basis to customers.

Goods vs. Services

Goods are tangible items that can be touched and held, while services are activities provided for consumers.

Opportunity Cost

The cost of the next best alternative that is forgone when making a choice.

Types of Business Sectors

Businesses can be categorized into primary (raw materials), secondary (manufacturing), and tertiary (services) sectors.

What is a Sole Trader?

A business owned and run by one person who keeps all profits and has unlimited liability.

Limited Liability

A legal structure that protects owners from being personally liable for the company's debts.

What does 'Setting Business Aims and Objectives' refer to?

The process of defining what a business wants to achieve, guiding its operations and strategies.

Stakeholders

Individuals or groups that have an interest in the activities and decisions of a business.

Factors Influencing Business Location

Includes cost, proximity to suppliers and customers, competition, and the availability of labor.

Purpose of Business Planning

To outline the business’s objectives, strategies, and the means to achieve them.

Cash Flow

The movement of cash into and out of a business.

Fixed Costs vs. Variable Costs

Fixed costs do not change with output levels, while variable costs vary directly with output.

What is 'Break-even'?

The point at which total revenue equals total costs, resulting in no profit or loss.

Market Segmentation

Dividing a market into smaller groups based on characteristics like age, gender, or income to better meet customer needs.

Promotional Mix

The combination of promotional tools used by a business to reach its target market and encourage sales.

What is E-commerce?

Buying and selling goods and services using the internet.

What is Lean Production?

A production approach focused on minimizing waste while maximizing productivity.

Total Quality Management (TQM)

An approach aimed at embedding awareness of quality in all organizational processes.

Job Analysis

The process of identifying and defining a job role and its requirements before recruitment.

Advantages of Internal Recruitment

Cheaper, quicker, and allows for familiarization with the business processes.

Disadvantages of External Recruitment

Longer process and potentially more expensive due to advertising and recruitment costs.

How is Profit calculated?

Profit = Total Revenue - Total Costs.

What are the components of a Statement of Financial Position?

Assets, Liabilities, and Equity.

What is the purpose of Market Research?

To gather information about consumer needs and market conditions to inform business decisions.