100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
AQA A LEVEL BUSINESS VALUATION EXAM WITH THE CORRECT ANSWERS $12.99   Add to cart
Quickly navigate to
Preview
  2.  
  3. AQA
  4.  
  5. AQA

Exam (elaborations)

AQA A LEVEL BUSINESS VALUATION EXAM WITH THE CORRECT ANSWERS
 4 views  0 purchase
  • Course
  • AQA
  • Institution
  • AQA

AQA A LEVEL BUSINESS VALUATION EXAM WITH THE CORRECT ANSWERS

Preview 4 out of 73  pages

Document information

  • November 2, 2024
  • 73
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • aqa a level business valuation exam with the corre

Written for

  • AQA
  • AQA

Seller

avatar-seller
HIGRADES

Reviews received

Content preview

AQA A LEVEL BUSINESS VALUATION
EXAM WITH THE CORRECT ANSWERS




Name three ways business impacts a country and its residents: -
VV VV VV VV VV VV VV VV VV VV VV VV correct
answer-Provides employment
VV VV VV


New products can enhance the lives of consumers
VV VV VV VV VV VV VV VV


Improve a country's reputation
VV VV VV




What do businesses do in the primary sector? -
VV VV VV VV VV VV VV VV VV VV correct answer-Extract or
VV VV


grow raw materials
VV VV VV




What do businesses do in the secondary sector? -
VV VV VV VV VV VV VV VV VV VV correct answer- VV


Manufacture goods using raw materials
VV VV VV VV




What do businesses do in the tertiary sector? -
VV VV VV VV VV VV VV VV VV VV correct answer-Provide
VV


services
VV




What do mission statements create? -
VV VV VV VV VV VV VV correct answer-Corporate aims
VV VV




What are the benefits of setting business objectives? - correct answer-
VV VV VV VV VV VV VV VV VV VV VV


Provide direction and can support planning and operations
VV VV VV VV VV VV VV


Allow a business to co-ordinate resources and ensure that all employees are
VV VV VV VV VV VV VV VV VV VV VV


working towards the same overall aim
VV VV VV VV VV VV

,What is profit maximisation? - correct answer-A business objective that
VV VV VV VV VV VV VV VV VV VV


requires a business to achieve the highest amount of profit for shareholders
VV VV VV VV VV VV VV VV VV VV VV VV




Which business objective requires a business to continue trading despite
VV VV VV VV VV VV VV VV VV


challenges in the external environment? - correct answer-Survival
VV VV VV VV VV VV VV VV VV




Which business objective requires the growth of stores or locations, sales
VV VV VV VV VV VV VV VV VV VV


value, sales volume or product range? - correct answer-Growth
VV VV VV VV VV VV VV VV VV VV




Which business objectives require a business to focus on supporting society
VV VV VV VV VV VV VV VV VV VV


through initiatives including sustainability and fair trade? - correct answer-
VV VV VV VV VV VV VV VV VV VV VV


Social, ethical and environmental
VV VV VV




What can corporate objective be broken down into? -
VV VV VV VV VV VV VV VV VV VV correct answer- VV


Functional objectives VV


Team objectives VV VV


Individual objectives VV




What is revenue? - correct answer-The income earned by a business from
VV VV VV VV VV VV VV VV VV VV VV VV


the sale of its goods and services
VV VV VV VV VV VV VV




What is the calculation for revenue? -
VV VV VV VV VV VV VV VV correct answer-number of sales x
VV VV VV VV


sales price
VV VV




What are the types of costs? -
VV VV VV VV VV VV VV VV correct answer-Variable Fixed
VV VV




What are variable costs? -
VV VV VV VV VV VV correct answer-Costs that change directly with
VV VV VV VV VV


output
VV




What are fixed costs? - correct answer-Cost that do not vary as the
VV VV VV VV VV VV VV VV VV VV VV VV VV


company changes its output
VV VV VV VV




Who argued in 1980 that a business can be a cost leader or differentiated
VV VV VV VV VV VV VV VV VV VV VV VV VV


but not both? - correct answer-Michael Porter
VV VV VV VV VV VV VV VV




What is profit? - correct answer-The amount of money that the business
VV VV VV VV VV VV VV VV VV VV VV VV


makes when taking into account costs
VV VV VV VV VV VV




What is the calculation for interest? -
VV VV VV VV VV VV VV VV correct answer-interest rate x the size
VV VV VV VV VV


of the loan
VV VV VV




What is the calculation for profit? -
VV VV VV VV VV VV VV VV correct answer-total revenue - total costs
VV VV VV VV VV




What do we call things like raw materials that businesses convert into
VV VV VV VV VV VV VV VV VV VV VV


outputs? - correct answer-Inputs
VV VV VV VV VV




What kind of sector do forestry businesses operate in? -
VV VV VV VV VV VV VV VV VV VV VV correct answer- VV


Primary sector VV

,What does the SMART acronym of business objectives stand for? -
VV VV VV VV VV VV VV VV VV VV VV VV correct
answer-Specific
VV VV


Measurable VV


Agreed VV


Realistic VV


Timely

Which type of costs don't change with a business' output? -
VV VV VV VV VV VV VV VV VV VV VV VV correct answer- VV


Fixed costs VV




What is a sole trader? -
VV VV VV VV VV VV VV correct answer-A single person who is the exclusive
VV VV VV VV VV VV VV


owner of a business.
VV VV VV VV




What is the term used to describe the lack of distinction between a sole
VV VV VV VV VV VV VV VV VV VV VV VV VV


trader's assets and their business' assets? - correct answer-Unlimited liability
VV VV VV VV VV VV VV VV VV VV VV




What are the advantages of sole trader business ownership? -
VV VV VV VV VV VV VV VV VV VV VV correct
answer-Easiest type of business to set up
VV VV VV VV VV VV VV VV


Sole trader is their own boss
VV VV VV VV VV VV


Sole trader decides what to do with the profit
VV VV VV VV VV VV VV VV VV


Easy to change the legal structure
VV VV VV VV VV




What are the disadvantages of sole trader business ownership? -
VV VV VV VV VV VV VV VV VV VV VV correct
answer-Unlimited liability
VV VV VV


Hard to raise finance
VV VV VV VV


Sole trader has all the responsibility
VV VV VV VV VV VV


Harder to retain good employees
VV VV VV VV




What is a partnership? - correct answer-Businesses that are owned by 2 or
VV VV VV VV VV VV VV VV VV VV VV VV VV


more partners that have an equal share of the profits and say in the
VV VV VV VV VV VV VV VV VV VV VV VV VV VV


decision-making process
VV VV




What are the disadvantages of partnership business ownership? - correct
VV VV VV VV VV VV VV VV VV VV


answer-Shared profits mean lower profits for individuals Unlimited liability
VV VV VV VV VV VV VV VV VV VV


Partners may disagree about business decisions
VV VV VV VV VV VV


Each partner is liable for the actions of the other partners
VV VV VV VV VV VV VV VV VV VV




Which type of limited company is where the ownership of shares is restricted?
VV VV VV VV VV VV VV VV VV VV VV VV


- correct answer-Private limited company
VV VV VV VV VV VV




Which type of limited company is where it sells share on the stock
VV VV VV VV VV VV VV VV VV VV VV VV


exchange? - correct answer-Public limited company
VV VV VV VV VV VV VV




What are the advantages partnership business ownership? - correct answer-
VV VV VV VV VV VV VV VV VV VV


More partners mean more experience and ideas
VV VV VV VV VV VV VV


Easier to raise money
VV VV VV VV


Easier to retain good employees as they can be made into partners
VV VV VV VV VV VV VV VV VV VV VV




What are the advantages of private limited companies? -
VV VV VV VV VV VV VV VV VV VV correct answer- VV


Limited liability VV VV

, The owners retain a lot of control over how the business is managed
VV VV VV VV VV VV VV VV VV VV VV VV VV


Easier to get a loan VV VV VV VV




What are the disadvantages of private limited companies? - correct answer-
VV VV VV VV VV VV VV VV VV VV VV


Finance is needs which has a lot of costs
VV VV VV VV VV VV VV VV VV


Legally obliged to publish their accounts which can be used by competitors
VV VV VV VV VV VV VV VV VV VV VV




What are the advantages of public limited companies? - correct answer-Able
VV VV VV VV VV VV VV VV VV VV VV


to raise money for investment allowing the company to grow
VV VV VV VV VV VV VV VV VV VV VV


Easier to raise capital VV VV VV VV


Limited liability VV




What are the disadvantages of public limited companies? - correct answer-
VV VV VV VV VV VV VV VV VV VV VV


Owners have little say over how the business is run
VV VV VV VV VV VV VV VV VV


Anyone is able to take over the company by buying enough shares
VV VV VV VV VV VV VV VV VV VV VV VV


Accounts must be public which can be used by competitors
VV VV VV VV VV VV VV VV VV




What is flotation? - correct answer-When firms become public companies and
VV VV VV VV VV VV VV VV VV VV VV


their shares are made available to buy
VV VV VV VV VV VV VV




Which suffix follows the name of a private limited company? -
VV VV VV VV VV VV VV VV VV VV VV VV correct
answer-Ltd
VV




What is a not-for-profit organisation? - correct answer-An organisation where
VV VV VV VV VV VV VV VV VV VV


any profit is reinvested in the business and it cannot be kept by the owners
VV VV VV VV VV VV VV VV VV VV VV VV VV VV VV




What are some types of not-for-profit organisations? -
VV VV VV VV VV VV VV VV VV correct answer- VV


Charities VV


Social enterprise VV VV


Unincorporated association VV




What does 'unincorporated association' mean? - correct answer-The
VV VV VV VV VV VV VV VV


organisation get no profit and are legally responsible for all of the
VV VV VV VV VV VV VV VV VV VV VV VV


organisation's debt The people who manage it have unlimited liability
VV VV VV VV VV VV VV VV VV VV




What are charities like Oxfam? -
VV VV VV VV VV VV VV correct answer-Not-for-profit organisations
VV VV




What is franchising? - correct answer-Where a business gives someone the
VV VV VV VV VV VV VV VV VV VV VV


right to sell its products and use its trademarks
VV VV VV VV VV VV VV VV VV




What are the advantages of franchising? -
VV VV VV VV VV VV VV VV correct answer-Low-cost way ofVV VV VV


scaling without needing lots of investment
VV VV VV VV VV VV VV


Increased brand awareness VV VV VV


Less risk of diseconomies of scale
VV VV VV VV VV




What are the disadvantages of franchising? - correct answer-Lose control
VV VV VV VV VV VV VV VV VV VV


over how franchisees operate
VV VV VV VV VV


A badly run franchise can negatively affect the brand image
VV VV VV VV VV VV VV VV VV

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller HIGRADES. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $12.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

77254 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$12.99
  • (0)
  Add to cart