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Business

GCSE · OCR

QuestionsFlashcards

1.1 Business Enterprise & Entrepreneurship
- The Purpose of Business Activity
  8
- The Nature of Enterprise
  11
1.2 Business Planning
- Why Write a Business Plan?
  4
- The Business Plan
  10
1.3 Business Ownership
1.4 Business Aims & Objectives
- Aims & Objectives
  8
- Changing & Differing Objectives
  6
1.5 Stakeholders in Business
- Stakeholders
  9
- Stakeholder Considerations
  12
1.6 Business Growth
- Organic Growth
  6
- External Growth
  12

3.1 The Role of Human Resources
3.2a Organisational Structures
- Different Organisational Structures
  10
- Organisation Charts
  8
3.2b Different Ways of Working
3.3 Communication in Business
3.4 Recruitment & Selection
3.5 Motivation & Retention
3.6 Training & Development
- Training & Development Methods
  15
- The Importance of Training & Development
  13
3.7 Employment Law

4.1 Production Processes
- Methods of Production
  15
- Technology in Production
  10
4.2 Quality of Goods & Services
- Quality
  9
- Methods of Ensuring Quality
  10
4.3 The Sales Process & Customer Service
- The Sales Process
  16
- Customer Service
  11
4.4 Consumer Law
4.5 Business Location
4.6 Working with Suppliers
- Procurement
  9
- Logistics & Supply Decisions
  9

5.1 The Role of Finance
5.2 Sources of Finance
- Financing Business Activity
  14
- Choosing Appropriate Sources of Finance
  24
5.3 Revenue, Costs, Profit & Loss
5.4 Break-Even
- The Importance of Break-Even
  7
- Using Break-Even
  2
5.5 Cash & Cash Flow
- The Importance of Cash
  10
- Cash Flow Forecasting
  15

6.1 Ethical & Environmental Considerations
- Ethical Considerations
  16
- Environmental Considerations
  15
6.2 The Economic Climate
6.3 Globalisation

Investment Decisions Flashcards

All 6 cards in this deck

When calculating ARR, how is the average annual profit found?: Average annual profit = total profit from the investment (total returns − cost of investment) ÷ number of years the investment lasts
What does a higher average rate of return (ARR) show?: The investment earns more profit each year compared with what it cost, so it gives a better return than an option with a lower ARR.
What is the average rate of return (ARR)?: The average profit an investment earns each year over its life, shown as a percentage of what the investment cost at the start.
What is the formula for average rate of return (ARR)?: ARR = (average annual profit ÷ cost of investment) × 100
What is average rate of return used for?: Comparing the profitability of different investment choices over the expected life of each investment, and against the interest rate from a bank.
Give one limitation of average rate of return as a way of judging an investment.: Any one of: it ignores when the returns are received (sooner is better); it relies on forecast profits that may be wrong.