A-level Business Studies Lesson 02

Question 1

Vision statement

Answer 1

An inspirational and succinct description of the desired future state of the company.

Question 2

Business aims

Answer 2

Long term goals of the business that support the fulfilment of the mission statement

Question 3

Business objectives

Answer 3

Goals that must be achieved in order to realise the stated aims of an organisation, department or individual team. They can be corporate or functional objectives.

Question 4

Corporate objectives

Answer 4

Goals of the whole organisation rather than different elements of the organisation. They are set in order to coordinate the activities and guide the actions of the whole organisation. They are dictated by the mission or corporate aims of an organisation.

Question 5

Functional objectives

Answer 5

Goals of the whole organisation rather than different elements of the organisation. They are set in order to coordinate the activities and guide the actions of the whole organisation. They are dictated by the mission or corporate aims of an organisation.

Question 6

Strategy

Answer 6

The medium to long term plans through which an organisation intends to achieve its objectives

Question 7

Cash flow

Answer 7

The amounts of money flowing into and out of a business over a period of time

Question 8

Sectors of the economy

Answer 8

Businesses operate in one of three sectors of the economy the Public sector (Government funded and operated, e.g. NHS), Private sector (privately owned businesses, e.g. Tesco) or Third sector (charities,CICs, e.g. Oxfam) of the economy

Question 9

Business size

Answer 9

The size of the company’s operations which can be measured in different ways, e.g. number of employees (1-10 = micro, 10-50 small, 50-250 medium, 250+ large), volume or value of sales, market share

Question 10

Business scale

Answer 10

The scale of a business refers to its geographic reach / spread, e.g. local, regional, national, international and global

Question 11

Economies of scale

Answer 11

Economies of scale are cost advantages that can occur when a company increases their scale of production and becomes more efficient, resulting in a decreased cost-per-unit.

Question 12

Product

Answer 12

A product is any good or service that a business sells to serve a customer’s need or want.

Question 13

Dividends

Answer 13

A dividend is a distribution of profits by a corporation to its shareholders.