Topic study hub
Understanding the nature and purpose of business
Students connect business purpose to objectives, mission, revenue, costs and profit.
0
Objectives
10
Flashcards
10
Questions
90 min
Study time
AqaA LevelBusinessWhat is business?
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Syllabus checklist
What you need to know
0 objective pages available
Business purpose and objectives2 objectives
- Explain why businesses exist and why they set objectives such as profit, growth, survival, cash flow and social or ethical objectives.
- Analyse the relationship between a business mission and its objectives.
Measuring profit2 objectives
- Calculate and interpret profit using revenue, fixed costs, variable costs and total costs.
- Explain why profit is important when assessing business performance and decision making.
Key terms
financial decision-makingBusiness purpose and objectivesprofitmissionBusiness purpose and objectives decisionMeasuring profitrevenue
Exam tips
- Business purpose and objectives exam tip 1: Write the method before the answer so the examiner can follow each step. Apply this to explain why businesses exist and why they set objectives such as profit, growth, survival, cash flow and social or ethical objectives..
- Business purpose and objectives exam tip 2: State the exact concept or formula you are using before substituting values. Apply this to explain why businesses exist and why they set objectives such as profit, growth, survival, cash flow and social or ethical objectives..
Common mistakes
- Business purpose and objectives common mistake 1: Show the method first, then give the final answer in the required form. Apply this directly to Business purpose and objectives.
- Business purpose and objectives common mistake 2: Name the relevant value or feature from the question and explain how it is used. Apply this directly to Business purpose and objectives.
Practice preview
- Explain how you would explain why businesses exist and why they set objectives such as profit, growth, survival, cash flow and social or ethical objectives. in the context of Understanding the nature and purpose of business.
- Describe one business decision or mechanism that helps you explain why businesses exist and why they set objectives such as profit, growth, survival, cash flow and social or ethical objectives..
- Explain how you would analyse the relationship between a business mission and its objectives. in the context of Understanding the nature and purpose of business.
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