Theme 2 Rev Cards

Question 1

2. Source of finance
   Internal & external

Answer 1

Internal- retained profits & selling assets
External- loan capital & share capital

Question 2

3. Why business aims & objectives change

Answer 2

Changes in market conditions, technology, financial performance, laws

Question 3

4. How business aims and objectives change as the business evolves

Answer 3

May choose to focus on survival/growth
Enter or exit market
In & red in size of workforce

Question 4

7.Ethics vs Profit trade off

Answer 4

By being more ethical may lead to higher costs meaning profits fall

Question 5

8.sustainability trade off

Answer 5

Being more sustainable may lead to higher costs meaning profits fall

Question 6

9. Pressure group
   How they impact business?

Answer 6

Organised group of people trying to influence governments or business

Marketing mix

Question 7

10. Marketing mix(product)
    Design, PLC, Extension strategies

Answer 7

Design mix- aesthetics, function, cost
Product life cycle- R&D, Intro, Growth, Maturity, Decline

Extension strategies- improve packaging, add features, new target market, advertising, reduce price

Question 8

14. Procurement

Answer 8

process of buying good/raw/stocks

Question 9

19. Gross profit margin formula, Net profit margin formula

Answer 9

GPM=(Gross Profit/Revenue) x 100
NPM=(Net Profit/Revenue) x 100