These are the revision notes which can be used for GCSE Business studies, IGCSE Business studies and O level Business studies. These notes are being provided for free so please share this website with your friends, so that we can continue providing these notes. High quality CIE/CAIE IGCSE,AS,A Level, and SAT revision notes made by students, for students. What is ZNotes? Of Secondary Education Business Studies grades. Get latest Cambridge IGCSE Business Studies Past Papers, Marking Schemes, Specimen Papers, Examiner Reports and Grade Thresholds. IGCSE / O Level Revision Notes. IGCSE Business Studies. Year 11 exam schedule. Print these out to help you prepare for all the keywords required for Section 1 of Business Studies IGCSE. Section 1 paper 2 Style exam Questions File. Types of Business task File. Section 3 Revision Exams and Notes File. Marketing Gap Fill File. A business is any organisation that uses resources to meet the needs of customers by providing a product or service that they demand. Without business activity, we would all still be entirely dependent on the goods that we could make or grow ourselves. Business activity allow us to enjoy a very much higher standard of living that would be possible if we remained entirely self-sufficient. ![]() The goods and services can be classified in several ways: Consumer goods → the physical and tangible goods sold to the general public - they can be durable and non-durable. Consumer services → the non-tangible products sold to the general public. Capital goods → the physical goods used by industry to aid in the production of other goods and services, such as machines and commercial vehicles. A business might seek to grow because of this likely benefits: • possibility of higher profits for the owners. • more status and prestige for the owners and managers - higher salaries are often paid to managers who control the bigger firms. • lower average costs. • growth of the business often means that it controls a larger share of the market. There are two main ways a business can expand: INTERNAL GROWTH - occurs when a business expands its existing operations. EXTERNAL GROWTH - is when a business takes over or merges with another business. It is often called integration. Merger → when the owners of two businesses agree to join their firms together to make one business. Takeover → when one business buys out the owners of another business which then becomes part of the ‘predator’ business. Three examples of mergers are shown below: • Horizontal merger: when a firm merges with another of the same industry. • Vertical merger: when a firm takes over another one of the same industry but of different stage of production. It can be backward or forward. • Conglomerate merger: when a firm merges a firm with a completely different industry. Volume Song 10. Fun songs for toddlers. Simile Song 9. Adjective Song 8. A skateholder is any person or group with a direct interest to the performance and activities of a business. Below there’s a list of the main skateholder’s groups and their aims: Owners: • a share of the profits so that they can gain a return on the money put into the business. • growth of the business so that the value of their investment increases. Workers: • regular payment for their work. • job security - workers do not want to look for new jobs frequently. • a job that gives satisfaction and provides motivation. Managers: • high salaries because of the important work they do. • growth of the business so that managers can control a bigger and better known business. This gives them more status and power. Customers: • safe and reliable products • value for money • well-designed products of good quality Government: • successful businesses will employ workers, pay taxes and increase the country’s output. • government will expect all businesses to stay within the law. The whole community: • jobs for the working population • production that does not damage the environment • safe products that are socially responsible. There are several reasons why businesses stay small: Type of industry the business operates: Firms in industries such as hairdressing, window cleaning, etc. Offer personal services or specialised products. If they were to grow too large, they would find it difficult to offer close and personal service demanded by consumers. Market size: If the market (total number of consumers) is small, the businesses are likely to remain small. This is true for firms which produce specialised products/services - which appeal only to a limited number of consumers. Owners’ objectives: Some owners prefer to keep the firm small, to have more control over it or to avoid stress and worry of running a large business. Business size can be measured in a number of different methods, the most common are: Comparing business size by number of employees: This method is easy to understand, yet some firms use production methods which employ very few people but produce high output levels. This is true in automated factories, which use the latest computer-controlled equipment. These firms are called capital intensive firms - they use very costly equipment to produce their output. In conclusion, a company with high output levels could employ fewer people than a business which produced less output. Comparing business size by value of output and sales: A high output of sales does not mean that a business is large when using other methods of measurement. E.g: A firm employing few people might produce and sell several very expensive computers each year. This might give higher sales figures than a firm selling cheaper products but employing more workers. Igcse Business Studies Revision NotesComparing business size by capital employed: This means the total amount of capital invested into the business. A company employing many workers may use labour-intensive methods of production. These give low output levels and use little capital equipment. Comparing business size by profit: It is used to measure efficiency when compared with the sales or capital employed at the business. Profit depends on more than just the size of the firm - it depends on the efficiency and the skills of the managers.
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