171-AQA-BUSS3

171-AQA-BUSS3 - tutor2u Business Blog Specification Map AQA...

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AQA – BUSS3 tutor2u Business Blog – Specification Map © Tutor2u Limited 2010 Functional Objectives and Strategies This section introduces candidates to functional objectives and strategies, and examines their appropriateness in the context of corporate objectives. Specification Amplification Using Objectives and Strategies functional objectives and their relationship with corporate objectives • the relationship between functional objectives and strategies. Candidates should understand a range of functional objectives that businesses might pursue (e.g. minimising costs , gaining market share ) and how these contribute to the achievement of corporate objectives . Financial Strategies and Accounts This section examines the financial objectives of larger businesses, the ways in which financial performance might be measured and the strategies they may deploy. Specification Amplification Understanding Financial Objectives financial objectives • assessing internal and external influences on financial objectives . Financial objectives should include: cash flow targets, cost minimisation , ROCE targets and shareholders’ returns . Using Financial Data to Measure and Assess Performance • analysing balance sheets • analysing income statements • using financial data for comparisons, trend analysis and decision making • assessing strengths and weaknesses of financial data in judging performance. Analysing financial data should focus on assessing performance and potential. Candidates should understand the importance of working capital , depreciation , profit utilisation and profit quality . Interpreting Published Accounts • conducting ratio analysis : the selection, calculation and interpretation of ratios to measure financial performance • assessing the value and limitations of ratio analysis in measuring a business’s performance. Candidates should understand the following ratios: liquidity ( current and acid test ratios ), profitability (ROCE), financial efficiency ( asset turnover , inventory [stock] turnover , payables [creditor] and receivables [debtor] days), gearing and shareholder ratios ( dividend per share and dividend yield ). Selecting Financial Strategies raising finance • implementing profit centres cost minimisation • allocating capital expenditure . Candidates should understand how these
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171-AQA-BUSS3 - tutor2u Business Blog Specification Map AQA...

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