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AQA Business Studies GCSE

Exam Information
Exam Board: AQA (GCSE Business Studies full course)
Paper: Unit 1 Setting up a Business
Duration: 1 hour
Weighting: 40%
Style: 60 marks
...
There are approximately
four questions after each case study ranging from 2-9 marks
...
A calculator may be
used for the finance questions
...
Objectives
may include: survive, breakeven, build reputation
Stakeholders e
...
employees, suppliers, customers and government, have an interest
in the business and are effected in a variety of different ways
Business plans are key to the success of a start-up as they help the business to
clearly state it’s aims and objectives, gain finance and plan resources
Small and start-up businesses can select from a range of legal structures: Sole
Trader, Partnership, and Private limited company (Ltd)
When starting up it is important to choose the best location for your business
...
A business would consider: Cost,
competitors, access to raw materials, labour and other factors when making this
decision
Key Term
Start-up
Entrepreneur
Social Enterprise
Primary Sector
Secondary Sector
Tertiary Sector
Gap in the market

Aims
Objectives
SMART

Definition
A business that has just begun
A person who starts a business of their own, a risk taker
A business that is set up to benefit others, not just make a
profit
Where raw materials are grown or extracted e
...
g car
manufacturer
Where services are provided e
...
In relation to marketing – the strategies behind
the pricing decision
A product which has a name that you recognise e
...
Big
Mac
A product that is made by a manufacturer but sold under
the retailers’ name e
...
g
...
The possible stages are Producer,
Wholesaler, Retailer and Consumer
...
g providing
employment
There are a range of key calculations you need to know to work out your basic
business finances: Sales, revenue, profit, total costs
Cash flow is really important especially in small and start-up businesses as it is often
lack of cash and being unable to pay bills that businesses close down
Key Term
Source of finance
Owners’ funds
Bank loan
Mortgage
Overdraft

Hire purchase
Government grants

Business Link

Price
Sales
Revenue
Costs
Fixed Costs
Variable Costs
Start-up Costs
Running Costs

Definition
A method used by a business to raise funds (money)
Money put into the business by the business owners
Money borrowed from the bank over an agreed period of
time
A loan which can only be used to purchase property and
land
Where a business is allowed to withdraw more money
from their bank account than is actually available
...
of units sold
The money that a business spends on setting up and
running
Costs that do not change with output (no
...
of units sold (output)
One off costs associated with beginning a business e
...

Buildings, machinery…
The regular (monthly) payments a business will make to

AQA Business Studies GCSE

Total Costs
Profit

Cash
Cash Flow
Cash Inflows
Cash Outflows
Cash Flow Forecast
Cash Flow Statement

Net Cash Flow
Opening Balance
Closing Balance

keep running e
...
rent, raw materials, wages & salaries
Calculated by:
Fixed Costs + Total Variable Costs
The money left from revenue once all the costs have been
paid, calculated by:
Total revenue – total costs
(A loss is made when total costs are greater than total
revenue)
The day to day money used to keep the business running
Money moving in and out of the business
Money coming into the business, known as Receipts, e
...

sales, loans, money invested by owners
Money going out of the business, known as Payments, e
...

rent, raw materials, wages, buying equipment
A prediction (plan) of the expected inflows and outflows
of cash over a period of time (month/year)
A historical record of what has already happened with the
inflows and outflows of cash over a period of time
(month/year)
Calculate by: Receipts - Payments
Last month’s closing balance, shows what was left in your
account at the end of the previous month
The amount of money left in the business’s account at the
end of this month, calculated by:
Net Cash Flow + Opening Balance

AQA Business Studies GCSE

People in Business
A new business will recruit new employees if its owner cannot do all the tasks
themselves due to skill shortage or time management
Recruiting people is complex, time consuming and expensive
Motivation is the range of factors that influence people to behave in certain ways
...

Identify a need to recruit > job description > person
specification > advertise (internal or external?) > shortlist
> interview > appoint
...
This is used to inform the potential employer all
about the applicant
When a candidate who has applied for a vacancy meets
face to face with a person from the business, normally a
manager to ask and answer questions about the role and
their relevant experience
The will or desire to do something
...
g
...
Requires employers to
make reasonable alterations to the working environment
e
...
ramps for wheelchair users
Employment Equality (Age) Regulations 2006 – Cannot
discriminate against those who are under 65 years old for
recruitment, training or promotion
There are too many of these to list but this is a summary
of the rights that they provide:
 Women can have 52 weeks maternity leave
 Everyone has the right to a paid holiday for a

AQA Business Studies GCSE

Health & Safety Laws

minimum of 24 days
 Working hours have a legal limit (48 hours per
week) although workers can sign an ‘opt-out’
agreement
 Any employee can choose to be a member of a
Trade Union
 Employees have to be given a contract of
employment
 Employees have the right to time off sick, to join
industrial action and if a dependent (usually their
child) is sick
Health & Safety at Work Act 1974 – Employers must
safeguard all their employees’ health, safety and welfare
at work
...
This can be done through the product itself, product information, after-sales
service, employees, premises and payment options
Consumer protection laws exist to prevent businesses from treating their customers
unfairly in relation to selling goods that are poorly described, products that are
unsafe, that do not work properly, that are sold at unfair prices and by passing on
personal details of customers to other businesses without their permission
Key Term
Production
Job production

Batch production

Efficiency
Quality

Technology

E-commerce
Customer service
After-sales service

Definition
The process of changing inputs, such as labour and raw
materials, into goods and services that can be sold
When the product made is a ‘one-off’ item, made one at a
time to meet the exact requirements of the customer e
...

tailor made suit
When a group of similar products are all made together at
the same time
...
g
...

A variety of methods used by businesses to become more
efficient – from internet, computers and printers, right up
to fully automated production and design using CAD &
CAM
Selling a product using the internet
The business activity that is concerned with meeting the
customers’ needs as fully as possible
Meeting the customers’ needs after they have bought a

AQA Business Studies GCSE

Customer loyalty

Consumer protection laws
Labelling of products law

Sales of products law

Use of consumer information
law
Safety of products law

product
...
g
...

Labelling of Food Regulations 1970 – packaged food must
contain the ingredients listed on the label
Weights & Measures Act 1986 – weights and measures
must be stated on the packet and contents must be
correct
...
g
...
Outlaws aggressive
door to door selling
Consumer Credit Act 1974 – stops businesses charging
very high interest rates when customers buy products on
credit e
...
a car, also allows customers a one week cooling
off period when they can change their mind about the
loan and pull out with no penalty
Sale of Goods Act 1979 – makes sure that products sold
should work as expected and be undamaged, that goods
should be as described and of the expected quality
Computer Misuse Act 1990
Data Protection Act 1998 – prevents the sale of consumer
personal details without their permission
Food and Drugs Act 1984 – lists things that can and
cannot be added to food
Consumer Protection Act 1987 – prevents the sale of
dangerous product and makes the business liable for any
injury or illness caused from using their product
Food Safety Act 1990 – illegal to sell food that is unsafe
and may cause illness
...
Below are some ideas for quiz formats that you can create and use at home, on
your own, or play with a group of friends…
Blockbusters
Who wants to be a millionaire?
Flash card quiz
Bingo
Connect 4
Wipeout
University challenge (see if you can make the bonus questions harder than the main
questions)

AQA Business Studies GCSE

Create Cue Cards

Can you reduce your revision notes
down to the bare essentials so that it
all fits on one side of a revision cue
card?
Key facts/definitions, examples,
benefits and drawbacks
Practice exam questions
Use past papers to practice as many different exam questions as possible across a wide
range of topics
...

What would your WWW and EBI be? You can also use the mark scheme to try and write a
model (perfect) answer
...
Pick questions based on:
Exam question style (2mark, 4 mark, 9mark)
Topic (Finance, People, Operations, Marketing, Growing)
Repeat a question to improve your previous answer

Websites
www
...
co
...
revisionguru
...
uk
www
...
co
...
s-cool
...
uk
www
...
net
Look for revision tips, power points, games, notes and exam technique advice
...

The exam has three areas of technique to perfect…

AO1 – Knowledge
Here, the examiner is looking for you to demonstrate what you know about Business key
terms, techniques, processes and calculations
...
Here are some ways that would get you application marks and a
few that will not…
Use data/figures from the case study
Choose a benefit/drawback that would suit this business
Explain why a choice is the best/worst one for this business
Using the business name
Using the name of the person/people running the business
Making general points which are not relevant to the business in the case study
Questions which assess AO2 are always 4 marks (although some finance questions may be
worth more depending on the detail of the calculation needed) and will begin with either
“Explain” or “Calculate”

AQA Business Studies GCSE

AO3 – Analysis and Evaluation
For this assessment objective the examiner wants to see that you can discuss the relevant
benefits and drawbacks of a point of business theory or a course of action
...

The quality of your written answers is also taken into consideration here
...
Once you have made your choice, you must build your argument to support this
choice

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