Business Studies Unit 3 Revision List

All you need to know for the Business Studies Exam Unit 3 Edexcel! 

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Business Studies Unit 3 Revision list
Effective Financial management
Cash flow
1. Explain the use/purpose of a cash flow forecast for a business
2. Name 5 inflows and outflows for a business
3. Be able to complete a cash flow forecast
4. Be able to read a cash flow forecast and comment on why the business may have a
positive or negative cash flow balance
5. Be able to suggest how a business can improve its inflows and reduces its outflows
for the long and short term
Break even analysis
1. Define fixed and variable costs
2. Be able to identify fixed and variable costs
3. Be able to calculate a business's breakeven point, using the break even formula
4. Understand what the breakeven point shows and why businesses do it.
5. Be able to complete a break even table
6. Understand the break even table, use the table to identify when a business does
break even.
7. Be able to draw and fully label a break even graph
8. Be able to calculate a business's margin of safety and show this on a BE graph
9. Understand and explain how a change in either fixed, variable or selling price can
effect/ change the breakeven point and profits.
Improving profits
1. Name 6 ways a business can improve its profits
2. For each method explain two consequences to the business. E.g. reduce staff wages
to help cut costs, however this could cause low motivation levels which means staff
will be less productive.

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Sources of Finance
1. Be able to define the internal and external sources of finance
Internal sources of finance External sources of finance
Retained profits Share capital
Sales of assets Bank loan
Owners funds Overdraft
Trade credit
2. Be able to give at least 2-3 advantages and disadvantages of each types of internal
and external source of finance.
Market research
1. What is the meaning of marketing ­ define
2. Explain the purpose of businesses carrying out marketing research ­ name 4 reasons
3.…read more

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Define repeat purchases
3. Name 8 methods used by businesses when setting up a product trial
4. What can a business do to its marketing mix to maintain repeat purchases
5. Name the issues a business may face when setting up product trials and repeat
Product life cycle and Boston Matrix
1. Define product life cycle
2. Explain the purpose of a product life cycle for a business
3. Explain the five phases of a product life cycle
a.…read more

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Give 6 examples of how each of the following businesses provide good customer
a. Restaurant
b. Airline
c. Supermarket
d. Mobile phone shop
1. Define `Quality control' and `Quality assurance'
2. Be able to explain the main differences (2-3 points) between `Quality control' and
Quality assurance'
3. Explain what `Kaizen groups' are and how they are used in an organisation
4. Name 3 business benefits to a business when using `Kaizen' in their organisation
5. Define `Zero defects'
Managing stock
1.…read more

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What can consumers get/gain should businesses break these laws.
Effective people management
Organisational structure
1. Explain what a organisational structure/ organisational hierarchy is
2. Define and explain the following terms:-
Divisional structure
Organisational chart
Chain of command
Span of control
Line manager
Function/ department
3. Name 4 drawback of having a long chain of command
4. Explain the difference between centralisation and decentralisation structures
5. Explain 2-3 advantages and disadvantages of using a centralised or decentralised
6.…read more

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Name 4 barriers to clear communication.
1. Explain how the following payment systems work:
a. Salaries
b. Wage
c. Overtime
d. Basic pay
e. Commission
f. Bonus
g. Fringe benefits
2. Explain the impact each payment systems would have on the business and the
3. Explain the differences between:
a. Full-time worker
b. Part-time worker
c. Temporary worker
d. Freelance worker
4. Give 2-3 advantages and disadvantages of the four above.
The wider world affecting business
Ethics in business
1.…read more

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Protectionist policies
d. Tariffs/ customs duties
e. Income distribution
f. Developed countries
g. Less developed countries
h. Export subsidies
i. Quotas
2. Explain how income, wage and products affect trade
3. Explain how import protection effects businesses
4. Explain how export subsidies effects businesses
The impact of government and the EU
1. What is the EU?, What does it mean when you are part of the EU?
2. What is tax and how does it work?
3.…read more

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