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262
•
3 Jan 2026
•
AQA A Level Business - Unit 1 (2024 Specification)
E
Eliza Stephenson
@elizastephenson_tmee
1 / 10
What is a Business?
Ever wondered why businesses exist beyond just making their owners rich? Businesses serve multiple purposes - they create jobs for millions of people, generate income that fuels the economy, and enhance a country's reputation on the global stage.
The main objectives businesses chase include profit, growth, and survival, both in the short and long term. These aren't just fancy goals - they give businesses a sense of purpose, help inform crucial decisions, motivate employees, and provide a way to measure performance.
Quick Tip: Remember that businesses operate across three industry sectors - primary (raw materials), secondary (manufacturing), and tertiary (services and retail).
Business Objectives and Profit
SMART objectives are your best friend when understanding how businesses plan. They're Specific, Measurable, Achievable, Relevant, and Time-based. This isn't just business jargon - it's how successful companies actually operate.
Understanding profit is crucial for your exams. Revenue comes from sales (selling price × quantity sold), whilst total costs include both fixed costs (stay the same regardless of output) and variable costs (change with production levels). The magic formula: Profit = Revenue - Total Costs.
There's also a hierarchy in business planning. It starts with the mission statement (overall purpose), flows down to corporate aims , then corporate objectives (quantifiable targets), followed by corporate strategy (actions to achieve goals), and finally business tactics .
Remember: Profit isn't just about money in the bank - it motivates employees through bonuses, provides finance for growth, and attracts investors.
Business Forms and Ownership
Sole traders are individuals who own and run their own businesses. They enjoy complete autonomy and keep all profits, but face unlimited liability - meaning their personal assets are at risk if things go wrong.
Limited companies are separate legal entities offering limited liability protection. Private limited companies (Ltd) can't sell shares to the public but remain fairly private, whilst public limited companies (PLC) can sell shares on the stock market but face greater scrutiny and need over £50,000 of share capital.
Don't forget about not-for-profit organisations like charities and social enterprises. These exist to do good for society, putting any surplus back into achieving their social goals rather than maximising profit.
Key Insight: The type of ownership affects everything - from mission and objectives to decision-making speed and access to finance.
Share Prices and Market Capitalisation
Market capitalisation determines a company's true worth using the formula: current share price × number of shares. This isn't just a number - it reflects investor confidence and influences major business decisions.
Share prices fluctuate based on company performance, political stability, technological changes, legal changes, possible takeovers, and overall economic conditions. These changes matter because they indicate management performance and influence all stakeholders.
Shareholders invest for various reasons - to achieve capital gains (buying low, selling high), receive annual dividends, get involved in business decisions, or help companies grow. Venture capitalists, like those on The Apprentice, invest specifically for financial gain.
Think About It: Share price changes affect a company's ability to raise finance from other sources and are watched carefully by competitors.
Adding Value and Franchising
Adding value is the difference between a product's price and the cost of inputs needed to make it. You can add value through building brands, creating unique selling points (USPs), improving convenience, enhancing design quality, and better packaging.
The benefits are clear - you can charge higher prices, create points of difference from competitors, and focus your business on specific target markets. This concept is fundamental to business success.
Franchising involves replicating successful business formulas. The franchisor licenses trademarks and proven business ideas to a franchisee, who pays initial and annual fees in return for using a recognised brand and receiving ongoing support.
Pro Tip: Franchising offers lower risk growth for franchisors and proven business models for franchisees, but both parties sacrifice some control in the process.
External Environment and Market Factors
The external environment significantly impacts business costs and demand. PESTLE analysis helps understand these factors: Political, Economic, Social, Technological, Legal, and Ethical/Environmental influences.
Factors influencing demand include income levels, trends and preference changes, availability of substitutes, competition levels, and unemployment rates. Good market conditions mean rising sales figures, possibly rising prices, and manageable competition.
Factors affecting costs include increases in raw material prices, wage costs, energy expenses, inflation, and competitive pressures on supply costs. Understanding these helps predict business performance and strategic decisions.
Real World Application: Businesses must constantly monitor external factors because they directly impact profitability and long-term survival strategies.
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Just amazing. Let's me revise 10x better, this app is a quick 10/10. I highly recommend it to anyone. I can watch and search for notes. I can save them in the subject folder. I can revise it any time when I come back. If you haven't tried this app, you're really missing out.
Basil
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This app has made me feel so much more confident in my exam prep, not only through boosting my own self confidence through the features that allow you to connect with others and feel less alone, but also through the way the app itself is centred around making you feel better. It is easy to navigate, fun to use, and helpful to anyone struggling in absolutely any way.
David K
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Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
very reliable app to help and grow your ideas of Maths, English and other related topics in your works. please use this app if your struggling in areas, this app is key for that. wish I'd of done a review before. and it's also free so don't worry about that.
Rohan U
Android user
I know a lot of apps use fake accounts to boost their reviews but this app deserves it all. Originally I was getting 4 in my English exams and this time I got a grade 7. I didn’t even know about this app three days until the exam and it has helped A LOT. Please actually trust me and use it as I’m sure you too will see developments.
Xander S
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮
Elisha
iOS user
This apps acc the goat. I find revision so boring but this app makes it so easy to organize it all and then you can ask the freeeee ai to test yourself so good and you can easily upload your own stuff. highly recommend as someone taking mocks now
Paul T
iOS user
The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
Best app on earth! no words because it’s too good
Thomas R
iOS user
Just amazing. Let's me revise 10x better, this app is a quick 10/10. I highly recommend it to anyone. I can watch and search for notes. I can save them in the subject folder. I can revise it any time when I come back. If you haven't tried this app, you're really missing out.
Basil
Android user
This app has made me feel so much more confident in my exam prep, not only through boosting my own self confidence through the features that allow you to connect with others and feel less alone, but also through the way the app itself is centred around making you feel better. It is easy to navigate, fun to use, and helpful to anyone struggling in absolutely any way.
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
very reliable app to help and grow your ideas of Maths, English and other related topics in your works. please use this app if your struggling in areas, this app is key for that. wish I'd of done a review before. and it's also free so don't worry about that.
Rohan U
Android user
I know a lot of apps use fake accounts to boost their reviews but this app deserves it all. Originally I was getting 4 in my English exams and this time I got a grade 7. I didn’t even know about this app three days until the exam and it has helped A LOT. Please actually trust me and use it as I’m sure you too will see developments.
Xander S
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮
Elisha
iOS user
This apps acc the goat. I find revision so boring but this app makes it so easy to organize it all and then you can ask the freeeee ai to test yourself so good and you can easily upload your own stuff. highly recommend as someone taking mocks now
Paul T
iOS user
AQA A Level Business - Unit 1 (2024 Specification)
E
Eliza Stephenson
@elizastephenson_tmee
Understanding what a business is goes far beyond just making money. Businesses exist to create employment, generate income, and contribute to a country's reputation, whilst pursuing objectives like profit, growth, and survival that keep our economy moving.
What is a Business?
Ever wondered why businesses exist beyond just making their owners rich? Businesses serve multiple purposes - they create jobs for millions of people, generate income that fuels the economy, and enhance a country's reputation on the global stage.
The main objectives businesses chase include profit, growth, and survival, both in the short and long term. These aren't just fancy goals - they give businesses a sense of purpose, help inform crucial decisions, motivate employees, and provide a way to measure performance.
Quick Tip: Remember that businesses operate across three industry sectors - primary (raw materials), secondary (manufacturing), and tertiary (services and retail).
Sign up to see the contentIt's free!
Access to all documents
Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Business Objectives and Profit
SMART objectives are your best friend when understanding how businesses plan. They're Specific, Measurable, Achievable, Relevant, and Time-based. This isn't just business jargon - it's how successful companies actually operate.
Understanding profit is crucial for your exams. Revenue comes from sales (selling price × quantity sold), whilst total costs include both fixed costs (stay the same regardless of output) and variable costs (change with production levels). The magic formula: Profit = Revenue - Total Costs.
There's also a hierarchy in business planning. It starts with the mission statement (overall purpose), flows down to corporate aims , then corporate objectives (quantifiable targets), followed by corporate strategy (actions to achieve goals), and finally business tactics .
Remember: Profit isn't just about money in the bank - it motivates employees through bonuses, provides finance for growth, and attracts investors.
Sign up to see the contentIt's free!
Access to all documents
Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Business Forms and Ownership
Sole traders are individuals who own and run their own businesses. They enjoy complete autonomy and keep all profits, but face unlimited liability - meaning their personal assets are at risk if things go wrong.
Limited companies are separate legal entities offering limited liability protection. Private limited companies (Ltd) can't sell shares to the public but remain fairly private, whilst public limited companies (PLC) can sell shares on the stock market but face greater scrutiny and need over £50,000 of share capital.
Don't forget about not-for-profit organisations like charities and social enterprises. These exist to do good for society, putting any surplus back into achieving their social goals rather than maximising profit.
Key Insight: The type of ownership affects everything - from mission and objectives to decision-making speed and access to finance.
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Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Share Prices and Market Capitalisation
Market capitalisation determines a company's true worth using the formula: current share price × number of shares. This isn't just a number - it reflects investor confidence and influences major business decisions.
Share prices fluctuate based on company performance, political stability, technological changes, legal changes, possible takeovers, and overall economic conditions. These changes matter because they indicate management performance and influence all stakeholders.
Shareholders invest for various reasons - to achieve capital gains (buying low, selling high), receive annual dividends, get involved in business decisions, or help companies grow. Venture capitalists, like those on The Apprentice, invest specifically for financial gain.
Think About It: Share price changes affect a company's ability to raise finance from other sources and are watched carefully by competitors.
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By signing up you accept Terms of Service and Privacy Policy
Adding Value and Franchising
Adding value is the difference between a product's price and the cost of inputs needed to make it. You can add value through building brands, creating unique selling points (USPs), improving convenience, enhancing design quality, and better packaging.
The benefits are clear - you can charge higher prices, create points of difference from competitors, and focus your business on specific target markets. This concept is fundamental to business success.
Franchising involves replicating successful business formulas. The franchisor licenses trademarks and proven business ideas to a franchisee, who pays initial and annual fees in return for using a recognised brand and receiving ongoing support.
Pro Tip: Franchising offers lower risk growth for franchisors and proven business models for franchisees, but both parties sacrifice some control in the process.
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External Environment and Market Factors
The external environment significantly impacts business costs and demand. PESTLE analysis helps understand these factors: Political, Economic, Social, Technological, Legal, and Ethical/Environmental influences.
Factors influencing demand include income levels, trends and preference changes, availability of substitutes, competition levels, and unemployment rates. Good market conditions mean rising sales figures, possibly rising prices, and manageable competition.
Factors affecting costs include increases in raw material prices, wage costs, energy expenses, inflation, and competitive pressures on supply costs. Understanding these helps predict business performance and strategic decisions.
Real World Application: Businesses must constantly monitor external factors because they directly impact profitability and long-term survival strategies.
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Sign up to see the contentIt's free!
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Sign up to see the contentIt's free!
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Sign up to see the contentIt's free!
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We thought you’d never ask...
What is the Knowunity AI companion?
Our AI Companion is a student-focused AI tool that offers more than just answers. Built on millions of Knowunity resources, it provides relevant information, personalised study plans, quizzes, and content directly in the chat, adapting to your individual learning journey.
Where can I download the Knowunity app?
You can download the app from Google Play Store and Apple App Store.
Is Knowunity really free of charge?
That's right! Enjoy free access to study content, connect with fellow students, and get instant help – all at your fingertips.
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The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
Best app on earth! no words because it’s too good
Thomas R
iOS user
Just amazing. Let's me revise 10x better, this app is a quick 10/10. I highly recommend it to anyone. I can watch and search for notes. I can save them in the subject folder. I can revise it any time when I come back. If you haven't tried this app, you're really missing out.
Basil
Android user
This app has made me feel so much more confident in my exam prep, not only through boosting my own self confidence through the features that allow you to connect with others and feel less alone, but also through the way the app itself is centred around making you feel better. It is easy to navigate, fun to use, and helpful to anyone struggling in absolutely any way.
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
very reliable app to help and grow your ideas of Maths, English and other related topics in your works. please use this app if your struggling in areas, this app is key for that. wish I'd of done a review before. and it's also free so don't worry about that.
Rohan U
Android user
I know a lot of apps use fake accounts to boost their reviews but this app deserves it all. Originally I was getting 4 in my English exams and this time I got a grade 7. I didn’t even know about this app three days until the exam and it has helped A LOT. Please actually trust me and use it as I’m sure you too will see developments.
Xander S
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮
Elisha
iOS user
This apps acc the goat. I find revision so boring but this app makes it so easy to organize it all and then you can ask the freeeee ai to test yourself so good and you can easily upload your own stuff. highly recommend as someone taking mocks now
Paul T
iOS user
The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
Best app on earth! no words because it’s too good
Thomas R
iOS user
Just amazing. Let's me revise 10x better, this app is a quick 10/10. I highly recommend it to anyone. I can watch and search for notes. I can save them in the subject folder. I can revise it any time when I come back. If you haven't tried this app, you're really missing out.
Basil
Android user
This app has made me feel so much more confident in my exam prep, not only through boosting my own self confidence through the features that allow you to connect with others and feel less alone, but also through the way the app itself is centred around making you feel better. It is easy to navigate, fun to use, and helpful to anyone struggling in absolutely any way.
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
very reliable app to help and grow your ideas of Maths, English and other related topics in your works. please use this app if your struggling in areas, this app is key for that. wish I'd of done a review before. and it's also free so don't worry about that.
Rohan U
Android user
I know a lot of apps use fake accounts to boost their reviews but this app deserves it all. Originally I was getting 4 in my English exams and this time I got a grade 7. I didn’t even know about this app three days until the exam and it has helped A LOT. Please actually trust me and use it as I’m sure you too will see developments.
Xander S
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮
Elisha
iOS user
This apps acc the goat. I find revision so boring but this app makes it so easy to organize it all and then you can ask the freeeee ai to test yourself so good and you can easily upload your own stuff. highly recommend as someone taking mocks now
Paul T
iOS user