AQA GCSE Business Paper 1 2022 Lecture Notes

Overview

• Session on AQA Paper 1 2022, GCSE Business.
• Focus on eight big topics based on advanced information.

Topic 1: Partnerships vs. Private Limited Companies

• Partnerships:
  • Owned by 2 or more people.
  • Unincorporated, unlimited liability.
  • Deed of partnership for profit and control distribution.
• Private Limited Companies:
  • Owned by shareholders, managed by directors.
  • Limited liability.
  • Shares not sold on stock exchange.
  • Benefits include protection of personal assets, extra finance through shares.
• Comparison:
  • Partnerships allow workload and risk sharing.
  • Private Limited Companies protect personal assets and allow control over shareholders.

Topic 2: Diseconomies of Scale

• Occurs after economies of scale are exhausted.
• Leads to increased average unit cost due to:
  • Coordination, motivation, communication issues.
• Can be a disadvantage of business expansion.

Topic 3: Impact of Interest Rate Changes

• Producers (Businesses):
  • Higher borrowing costs lead to lower profits.
  • Increases cost of investments in capital.
• Consumers:
  • Encourages saving, discourages borrowing.
  • Reduces disposable income, leading to decreased demand for goods/services.

Topic 4: Benefits of Good Customer Service

• Increases customer satisfaction and loyalty.
• Leads to increased spending per customer and profitability.

Topic 5: Stock Management

• Just in Time (JIT):
  • Aligns production with supply orders.
  • Benefits: lower storage costs, reduced waste.
• Just in Case (JIC):
  • Holds large stock quantities.
  • Benefits: economies of scale, meets sudden demand changes, less supplier reliance.

Topic 6: Importance of Motivation

• Improves productivity, reduces absenteeism, enhances staff retention.
• Leads to improved product/service quality and reduced recruitment costs.

Topic 7: Motivation Methods

• Financial: Increase salary, commission, profit sharing.
• Non-Financial: Management style adjustments, training, extra responsibility.

Topic 8: Types of Training

• Off-the-Job Training:
  • Outside workplace, focused learning, expert trainers.
• On-the-Job Training:
  • Practical, cheaper, builds employee relationships.

Smelling Out Longer Questions

• Likely topics: business ownerships, stock management methods, training types.
• Longer questions expected on partnerships, private limited companies, and stock management.

Model Answers Provided

• Business Ownership: Advantages of changing to a private limited company.
• Stock Management: Benefits of just in time over just in case.

Final Remarks

• Emphasis on revising all advanced information topics.
• Best of luck with paper 1.