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AQA Business Studies for AS : Revision Guide by Ian Marcouse; Marie Brewer; Andrew Hammond

By Ian Marcouse; Marie Brewer; Andrew Hammond

This booklet has been written for AQA examination luck. greater than simply as aide to reminiscence, it selections out the most important wisdom you would like for the AS examinations, exhibits you the way to use your wisdom to the enterprise context after which demonstrates how this is constructed into an overview. quite a few perform questions written to AQA AS normal are integrated, and all have solutions within the again that can assist you revise on your own or with Read more...

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Expenditure budget – the maximum spending allowed by a manager or department in the course of a year Income budget – the minimum level of sales (by value) expected over a period of time. Themes for evaluation There is a danger that entrepreneurs might spend so much time on their budgets that they forget to run their actual business. Having plans is undoubtedly helpful, but accepting they will never be completely accurate is a necessary skill for an entrepreneur whose budgets will have been set based on a ‘best guess’.

In spite of these huge injections of cash Ocado, which has a 5-year deal to sell Waitrose products online within the M25, has never made a profit. It generates £10m of earnings each year but is unprofitable after paying interest, depreciation and tax. Test yourself 1 What is the difference between cash inflows and revenue? (4) 2 How might seasonality affect a firm’s cash flow? (4) 3 Why is it important for a new business to look at both cash flow and profitability? (8) 4 Why might a profitable business have cash flow problems?

One factor in this success is the careful management of stock. Computers are made to the customer specification. At the assembly plant they do not keep stocks of finished machines, only component parts. After an order is received the computer is constructed then shipped to a distribution centre. Here it meets up with its various peripherals. These items such as monitors and keyboards are not held in stock but are delivered to the distribution centres directly from the suppliers. Minimising its use of capital has helped Dell to finance and maintain its incredible growth.

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