What Is Business? | AQA A-Level Business (7132)
What Is Business?
- 95 questions
- 8 subtopics
- The business functions, assessed on all three papers
- Paper 1, Paper 2 and Paper 3
What is business? opens the course and can be examined on any of the three papers.
It covers what a business is for, the forms it can take and who bears the risk, and the external conditions every business has to trade within.
Sample questions from What Is Business?
Answer each one closed book first, then open the answer.
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Why businesses exist and their objectives
What does cash flow mean as a business objective?
Show the answer
Cash flow as an objective involves ensuring sufficient liquid funds are available to meet day-to-day financial obligations. -
Revenue, costs and profit
Calculate the total costs when fixed costs = £39,000, variable costs = £18,000.
Show the answer
Total costs = 39000 + 18000 = £57,000. -
Calculating and presenting business data
Why is it important for a business to calculate profit accurately?
Show the answer
To assess financial performance, make informed decisions about pricing and costs, plan for the future, and report to stakeholders. -
Business forms, sectors and liability
What is a non-profit organisation?
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An organisation that operates to achieve social, charitable or community goals rather than to generate profit for owners. -
Share capital, market capitalisation and dividends
State the formula for calculating market capitalisation.
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Market capitalisation = Share price × Number of shares issued. -
What moves a share price, and how ownership shapes objectives
What are two consequences for a company when its share price rises?
Show the answer
Market capitalisation increases, making it easier to raise additional capital and reducing vulnerability to takeover. -
Competition, market conditions and incomes
Define market conditions.
Show the answer
Market conditions refer to the overall state of the market, including factors such as whether the market is growing or declining, saturated or emerging. -
Interest rates, demographics and environmental issues
State four demographic factors that businesses should consider.
Show the answer
Age distribution, population size, geographic distribution, and household composition.
The 8 subtopics
One subtopic is one session. Work down the list.
| Subtopic | What it covers | Questions |
|---|---|---|
| Why businesses exist and their objectives | Profit, growth, survival, cash flow, social and ethical objectives, and how a mission relates to them. | 14 |
| Revenue, costs and profit | Revenue, fixed and variable costs, total cost and profit, and why profit matters to a business. | 15 |
| Calculating and presenting business data | Calculating revenue, total cost and percentage change, and choosing the right chart for the data. | 9 |
| Business forms, sectors and liability | Sole traders, private and public companies, the public and non-profit sectors, and limited and unlimited liability. | 17 |
| Share capital, market capitalisation and dividends | Ordinary share capital, shareholder rights, dividends, and calculating market capitalisation. | 11 |
| What moves a share price, and how ownership shapes objectives | The internal and external influences on a share price, and how ownership structure shapes the mission. | 8 |
| Competition, market conditions and incomes | How competition, market conditions and changes in consumer income affect demand and costs. | 8 |
| Interest rates, demographics and environmental issues | Interest rates, demographic change, environmental pressure and fair trade as external influences. | 13 |
How the guide is worked
Answering a question from memory stores it far better than reading the answer again. The guide runs that as a fixed procedure on one subtopic at a time, about twenty minutes a session.
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Step 1 · Closed book
Cover the answers. Work through one subtopic and write down what you can. Leave blanks where you have nothing.
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Step 2 · Open book
Go back to the top. Read each printed answer and write it out in full, including the ones you had right.
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Step 3 · Closed book again
Same questions, same order, from memory. The gap between pass one and pass three is the session result.
Read the full method, the return schedule and the research behind it.
Nearby topics
AQA A-Level Business Active Recall Guide
Every topic, not just this one. 1,819 questions with their answers.