Business unit 1 23/05/18

I'm just going to regurgitate what I said on a previous post about predictions for what might come up, and what you probably should revise:

- One of those tables about the financial situation of a business with their financial information for each month (usually a three-four month period) - they'll probably ask us to work out variables to do with cash-flow and costs (sometimes they put in the opening and closing balance as well). - Remember: Fixed Costs + Variable Costs = Total Costs; Inflows (Receipts) - Outflows (Payments) = Net Cash-flow; Net cash-flow + Opening balance = Closing balance; Profit/Loss = Total Revenue - Total Costs. Remember: Cash-flow is NOT, I repeat, NOT the same as profit.A cash-flow forecast gives a business an idea about its liquidity/solvency, which shows whether it can pay its debts
- Exchange rates - the effects a change in exchange rates has on a business (e.g. If the sterling depreciates, business in the UK that import goods will face higher costs and will have to either increase their prices or reduce their margin of profit).
Something about market research. - Whether it be qualitative, quantitative, primary or secondary. (e.g. quantitative is numerical data; qualitative is about attitudes, judgement and opinions of customers; secondary is research that has already been carried out like newspaper or government statistics; primary is research that is being done for the first time and is new like conducting a survey or having a focus group).
- Something about the benefits or demerits for starting up as a sole-trader, being a private limited company or buying a franchise (e.g. a franchisor gives a franchisee continued training and support, but the franchisee may have to pay a hefty sum that they don't have to buy the franchise; sole-traders have unlimited liability, which means ).
- Application process - legislation (e.g. discrimination against age and disability is illegal), documents required (e.g. Person specification, Job Description), what traits are desirable for a particular business (e.g. willingness to undertake training; willingness to work as a team).
Something about the attributes of an entrepreneur (e.g. willing to undertake new ventures, take risks and show initiative). - Remember: an entrepreneur is someone who runs their own business and takes risks.
- Identifying products and services (e.g. a service is something that is non-tangible like a taxi ride or a hair-cut; a product is tangible like a newspaper or chocolate bar).
- The business cycle.

Remember: It's a paper composed of 19 multiple choice questions, so on each one you have a 25% of getting the answer correct! This is a privilege not seen on most tests, so don't overthink your answers. Go with what you think is most logical! And learn your key words, they're worth five marks at the end, ALWAYS!
Good luck!

If I could hug you I would, thank you so much. You're a good person.

AQA or Edexcel?