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GCSE Business · key term
Keeping a business operating rather than having to close.
Used by AQA, Edexcel and OCR
Paper 1, Paper 2
Continuing to trade rather than closing down.
Revise: Setting Aims and ObjectivesOne concentrating on survival might instead delay expansion and control costs. The same decision can therefore be sensible for one business but unsuitable for another.
Specification 1.3.1, 2.1.2 · Paper 1, Paper 2
Revise: Business Aims and ObjectivesSurvival means keeping the business operating. A new business has not yet established a reliable customer base, so it may initially concentrate on attracting enough customers and meeting its bills rather than expanding quickly.
Continuing to trade by covering costs and maintaining enough cash to pay bills when they fall due.
Paper 1
The objective of keeping a business operating rather than having to close.
Revise: Common Business ObjectivesCommon objectives are profit, survival, growth, providing a service and market share.
Keeping a business operating rather than closing down.
Build a chain of reasoning. For example, stronger competition may threaten sales, making survival more urgent and encouraging tighter control of costs.
When explaining why objectives differ, link a feature of the business to its priority: for example, a new business has an uncertain customer base, so survival may matter more than rapid expansion.
Distinguish why an objective changes, such as falling demand, from how it changes, such as a switch from growth to survival.
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