AQA GCSE Business Studies Revision

The full topic list for AQA GCSE Business Studies, taken from the current specification, and how to revise every topic with AI marked practice.

29 topic groups · 236 numbered specification points · 265 checklist items

Official AQA specification (opens in a new tab)

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Business Studies topic list

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Sources of finance
- 1.1 Methods businesses use to raise finance
- 1.2 Appropriateness of sources of finance
- 1.3 understand the main internal and external sources of finance available (including family and friends, retained profit, a new share issue, obtaining a loan or mortgage, selling unwanted assets, overdrafts, trade credit, hire purchase and government grants)
- 1.4 analyse the advantages and disadvantages of each method for a given situation
- 1.5 evaluate the suitability of sources of finance for new and established businesses
Cash flow
- 2.1 Importance of cash to businesses
- 2.2 Interpreting cash flow forecasts
- 2.3 Difference between cash and profit
- 2.4 understand the consequences of cash flow problems and the effect of positive cash flow
- 2.5 understand how and why cash flow forecasts are constructed
- 2.6 complete and interpret sections of a cash flow forecast (this includes an understanding of cash inflows and outflows, net cash flow and the opening and closing balance. Students are not expected to be able to construct an entire cash flow forecast)
- 2.7 evaluate possible solutions to cash flow problems, including re-scheduling payments, overdrafts , reducing cash outflow, increasing cash inflow and finding new sources of finance
Financial terms and calculations
- 3.1 Basic financial terms
- 3.2 Basic financial calculations
- 3.3 Average rate of return
- 3.4 Break-even
- 3.5 understand the difference between variable costs, fixed costs and total costs
- 3.6 understand the main investment projects that businesses undertake, including investment in new machinery, buildings and vehicles and be able to calculate the average rate of return for these projects
- 3.7 understand the meaning of the term break-even output and interpret break-even charts
- 3.8 identify the break-even level of output and margin of safety from a break-even chart
- 3.9 evaluate the value of using break-even analysis to a business
- 3.10 Students will not be expected to draw break-even charts or use the break-even formula
Analysing the financial performance of a business
- 4.1 Purpose of financial statements
- 4.2 Components of financial statements
- 4.3 Interpretation of data given on financial statements
- 4.4 understand the importance of financial statements for assessing business performance and helping make business decisions
- 4.5 identify the main components of the income statement and the statement of financial position
- 4.6 understand the difference between assets and liabilities and that the statement of financial position is a snapshot in time
- 4.7 make judgements on the performance of a business through the interpretation of the information contained in income statements
- 4.8 consider current performance, performance against previous years, performance against competitors and performance from the perspective of a range of stakeholders
- 4.9 calculate gross profit margin and net profit margin to help assess financial performance
- 4.10 Students will not be given formulae in an exam
Production processes
- 5.1 Methods of production
- 5.2 job
- 5.3 flow
- 5.4 Students should be familiar with job and flow production methods and understand when each is appropriate
- 5.5 lean production
- 5.6 just in time (JIT)
- 5.7 Students should consider how production might be made more efficient by the use of lean production techniques
The role of procurement
- 6.1 Managing stock
- 6.2 Just in case (JIC)
- 6.3 The benefits of having spare stock to satisfy demand balanced against the cost of holding buffer stock
- 6.4 Factors affecting choice of suppliers including
- 6.5 quality
- 6.6 The effects of procurement and logistics on a business, including
- 6.7 lower unit costs
- 6.8 working with suppliers to ensure that key processes are running efficiently and cost effectively
- 6.9 Students should understand what procurement and logistics are and their effect on a business
- 6.10 Students should understand what a supply chain is and recognise the benefits of managing an effective supply chain
The concept of quality
- 7.1 Consequences of quality issues
- 7.2 Students should have an understanding of customer expectations of quality in terms of production of goods and the provision of services
- 7.3 Methods of maintaining consistent quality: Total quality management (TQM)
- 7.4 Students should be aware of the methods of maintaining consistent quality and be able to identify the advantages to a business of using TQM
- 7.5 additional sales
- 7.6 image/reputation
- 7.7 inspection costs
- 7.8 staff training
- 7.9 the provision of services
- 7.10 Students should be aware of the possible quality issues as businesses grow, particularly if outsourcing and franchising is used
Good customer services
- 8.1 Methods of good service
- 8.2 customer engagement (creating a positive experience for the customer)
- 8.3 Benefits of good customer service, including
- 8.4 customer loyalty
- 8.5 profitability
- 8.6 dissatisfied customers
- 8.7 reduction in revenue
- 8.8 understand the importance of providing good service to customers and analyse the techniques businesses use to provide good customer service
- 8.9 websites
- 8.10 social media
Technology
- 9.1 E-commerce
- 9.2 Digital communication
- 9.3 Students should understand the impact of the changing use of ICT and how it influences business activity
- 9.4 E-commerce to access wider markets
- 9.5 Digital communication changing the way businesses communicate with stakeholders. Students are expected to know relevant examples of digital technology/communication
Ethical and environmental considerations
- 10.1 Ethical considerations
- 10.2 identify and analyse where there may be a possible trade off between ethics and profit
- 10.3 Students are expected to know relevant examples of ways in which a business can behave ethically and the benefits and drawbacks of ethical behaviour
- 10.4 Environmental considerations
- 10.5 recycling
- 10.6 disposing of waste
- 10.7 demonstrate knowledge and understanding of how business and consumers accept greater environmental responsibility in their decision making and the costs and benefits of businesses behaving this way
- 10.8 Sustainability
- 10.9 using scarce resources
- 10.10 identify and analyse where there may be a possible trade-off between sustainability and profit
The economic climate on businesses
- 11.1 Interest rates:how fluctuating interest rates can affect businesses that rely on overdrafts and loans for financehow fluctuating interest rates can affect consumer and business spending
- 11.2 Level of employment
- 11.3 Consumer spending
- 11.4 demonstrate and understand how businesses might be affected by changes in the rate of interest
- 11.5 identify how and why businesses might be affected by changes in levels of employment
- 11.6 discuss how demand for products and services may change as incomes fluctuate
- 11.7 Economic theory relating to how/why interest rates change is not required
Globalisation
- 12.1 How UK businesses compete internationally, offering
- 12.2 better designs
- 12.3 higher quality products at lower prices
- 12.4 demonstrate knowledge and understanding of globalisation and the benefits and drawbacks that it offers UK businesses
- 12.5 Exchange rates
- 12.6 Students should understand the impact of exchange rates on the profit and sales of those businesses that import and/or export
- 12.7 They will not be asked to calculate exchange rate conversions
Legislation
- 13.1 Employment law
- 13.2 Health and Safety law
- 13.3 Consumer law
- 13.4 assess the impact of legislation on businesses , for example cost, training needs, recruitment and the consequences of failure to follow legislation for the business
- 13.5 Students should be aware of the benefits for providing a safe working environment
- 13.6 national minimum wage/living wage
- 13.7 the Equality Act (2010)
- 13.8 Health and safety law including: the Health and Safety at Work Act (1974)
- 13.9 Consumer law including trade descriptions
- 13.10 Only brief knowledge of each law is needed. More emphasis should be placed on the effects of the legislation on businesses
Competitive environment
- 14.1 Impact on businesses of operating in competitive markets
- 14.2 Uncertainty and risks businesses face
- 14.3 understand the meaning of a market and competition
- 14.4 analyse potential impacts of competition on businesses and identify situations when businesses face minimal or no competition
- 14.5 understand the risks businesses face and the reasons why all businesses face uncertainty
- 14.6 understand the reason why entrepreneurs embark on running businesses and the activities businesses can undertake to minimise risks
Identifying and understanding customers
- 15.1 The importance of identifying and satisfying customer needs
- 15.2 provide a product or service that customers will buy
- 15.3 increase sales
- 15.4 select the correct marketing mix
- 15.5 avoid costly mistakes
- 15.6 be competitive
Segmentation
- 16.1 Types of segmentation
- 16.2 Students should understand how and why different businesses use segmentation to target customers , including
- 16.3 gender
- 16.4 age
- 16.5 location
- 16.6 income
The purpose and methods of market research
- 17.1 Purpose of market research
- 17.2 demand
- 17.3 target market
- 17.4 Methods of market research to include primary and secondary
- 17.5 surveys
- 17.6 focus groups
- 17.7 printed press eg newspapers
- 17.8 Students should identify the benefits and drawbacks for various market research techniques and select the best method for a given business
- 17.9 interpret and use qualitative and quantitative market research findings to help make appropriate decisions for different types of business
- 17.10 identify market size and market share
The elements of the marketing mix: price, product, promotion and place (4Ps)
- 18.1 Pricing methods, including
- 18.2 nature of the market
- 18.3 unique selling point (USP)
- 18.4 extension strategies:updating packagingadding more or different featureschanging target marketadvertisingprice reduction
- 18.5 Students should understand how and why businesses might broaden and balance their product portfolio using the Boston Matrix
- 18.6 billboards
- 18.7 social media
- 18.8 create or change the image of the product
- 18.9 Students should be familiar with the different channels of distribution used by businesses to gain access to potential customers
- 18.10 recognise how the marketing mix evolves over time and evaluate how businesses may react to this
The purpose and nature of businesses
- 19.1 Purpose of business
- 19.2 Reasons for starting a business
- 19.3 Business enterprise and entrepreneurship
- 19.4 Dynamic nature of business
- 19.5 understand the difference between goods and services, needs and wants
- 19.6 understand the meaning of factors of production – land, labour, capital, enterprise
- 19.7 define the three sectors of primary, secondary and tertiary and give examples of types of business that operate in each sector
- 19.8 understand the term enterprise and what is meant by an entrepreneur
- 19.9 outline the objectives of an entrepreneur, including to be their own boss, flexible working hours , to pursue an interest , earn more money, identify a gap in the market and dissatisfaction with current job
- 19.10 understand that businesses face a constantly changing business environment due to changes in technology, economic situation, legislation and environmental expectations
Business ownership
- 20.1 Sole traders
- 20.2 Partnerships
- 20.3 Private limited companies (ltd)
- 20.4 Public limited companies (plc)
- 20.5 Not-for-profit organisations
- 20.6 understand the different legal structures that businesses adopt
- 20.7 analyse the benefits and drawbacks of each legal structure (including issues such as management and control, sources of finance available, liability and distribution of profits)
- 20.8 understand the concept of limited liability and which legal structures benefit from this
- 20.9 evaluate which legal structure would be most appropriate for a variety of business examples, including new start-up businesses and large established businesses
- 20.10 Students are not expected to have an understanding of the legal process of incorporation
Setting business aims and objectives
- 21.1 What are business aims and objectives
- 21.2 Purpose of setting objectives
- 21.3 Role of objectives in running a business
- 21.4 Changing objectives
- 21.5 Use of objectives in judging success
- 21.6 understand the main aims and objectives for businesses: survival, profit maximisation, growth (domestic and international), market share, customer satisfaction, social and ethical objectives and shareholder value
- 21.7 understand the role of objectives in running a business
- 21.8 understand how and why the objectives set will differ between businesses (reasons include the size of the business, level of competition faced and type of business (not-for-profit organisations))
- 21.9 understand how and why the objectives set may change as businesses evolve. Students should consider how the objectives of larger more established businesses might differ from smaller start-up businesses, eg becoming the dominant business in the market, international expansion, increasing shareholder value and ethical and environmental considerations
- 21.10 understand the success of a business can be measured in other ways than profit
Stakeholders
- 22.1 Main stakeholders of businesses
- 22.2 Objectives of stakeholders
- 22.3 Impact of business activity on stakeholders
- 22.4 Impact and influence stakeholders have on businesses
- 22.5 understand what is meant by a stakeholder and who the main stakeholders of a business are, including owners, employees, customers, local community and suppliers
- 22.6 understand stakeholders’ main objectives including maximising pay for workers, minimising environmental impact on local community and high dividend payments for owners
Business location
- 23.1 Factors influencing the location decision of a business
- 23.2 understand the factors that influence where a business is located
- 23.3 including proximity to the market
- 23.4 availability of raw materials
- 23.5 labour
- 23.6 competition and costs
Business planning
- 24.1 The purpose of business planning
- 24.2 The main sections within a business plan
- 24.3 Basic financial terms
- 24.4 Basic financial calculations
- 24.5 understand the reasons why businesses create plans, including importance in setting up a new business, raising finance, setting objectives and detailing how functions of a business will be organised
- 24.6 understand the main sections of a business plan
- 24.7 analyse the benefits and drawbacks of business planning
- 24.8 understand the difference between variable costs, fixed costs and total costs
- 24.9 understand the concept of revenue, costs, profit and loss
- 24.10 Students will not be expected to write a business plan
Expanding a business
- 25.1 Methods of expansion
- 25.2 Benefits and drawbacks of expansion
- 25.3 Economies of scale
- 25.4 Diseconomies of scale
- 25.5 discuss the advantages and disadvantages of methods of growth
- 25.6 understand the methods used by businesses when expanding (organic growth through franchising, opening new stores and expanding through e-commerce , outsourcing and external growth through mergers and takeovers)
- 25.7 understand the benefits of growth in terms of unit cost advantages due to economies of scale and the drawbacks of growth due to diseconomies of scale
- 25.8 understand the meaning of purchasing and technical economies of scale
- 25.9 understand that with growth businesses increase the risk of diseconomies of scale occurring due to poor communication, coordination issues and reduced staff motivation
- 25.10 calculate and interpret average unit costs
Organisational structures
- 26.1 Organisational structures
- 26.2 Appropriateness of organisational structures
- 26.3 Centralisation and decentralisation
- 26.4 understand
- 26.5 internal organisational structures, span of control, chain of command, delayering and delegation
- 26.6 why businesses have internal organisational structures, including an understanding of different job roles and responsibilities throughout the business
- 26.7 the impact that having a tall or flat organisational structure has on how a business is managed
- 26.8 how organisational structure may affect the different ways of communication
Recruitment and selection of employees
- 27.1 The need for recruitment
- 27.2 Methods of recruitment and selection of employees
- 27.3 Contracts of employment
- 27.4 understand the difference between internal and external recruitment and the benefits and drawbacks of each approach
- 27.5 outline the main stages in the recruitment and selection process, including an understanding of job analysis, job description, person specification, and selection methods
- 27.6 analyse the benefits of having an effective recruitment and selection process for a business, including high productivity, high quality output or customer service and staff retention
- 27.7 understand the difference between part time and full time contracts, job share and zero hour contracts
- 27.8 understand the benefits of full and part time employment
Motivating employees
- 28.1 Importance of motivation in the workforce
- 28.2 Methods to motivate staff
- 28.3 understand the benefits of a motivated workforce, such as staff retention and high productivity
- 28.4 understand the use of financial methods of motivation (including an understanding of the main methods of payment including salary, wage, commission and profit sharing)
- 28.5 understand the use of non-financial methods of motivation, including styles of management, importance of training and greater responsibility, fringe benefits
- 28.6 Specific motivational theories (such as Maslow) will not be examined
Training
- 29.1 Importance of training the workforce
- 29.2 Types of training undertaken by businesses
- 29.3 explain the benefits of training employees for a business, including increased productivity, ability to deal with changes in technology, increased motivation, staff retention, production of high quality goods and good customer service
- 29.4 understand the methods of training undertaken by businesses, including induction training, on the job training and off the job training
- 29.5 explain the benefits of induction training
- 29.6 analyse the benefits and drawbacks of on the job and off the job training and evaluate which would be the most appropriate method for a variety of businesses

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