100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Summary IGCSE Business Studies In-depth Notes: Chapters 1-18 $14.08
Add to cart

Summary

Summary IGCSE Business Studies In-depth Notes: Chapters 1-18

 6 views  0 purchase
  • Course
  • Institution

Are you preparing for your IGCSE Business exam and looking for a reliable study resource? Look no further! These detailed study notes cover all the essential topics from Chapters 1 to 18, in Sections 1-4: - Understanding Business Activity - People in Business - Marketing - Operations Manage...

[Show more]

Preview 4 out of 46  pages

  • September 3, 2024
  • 46
  • 2023/2024
  • Summary
  • 200
avatar-seller
Business Studies
Business activity
Goods: tangibles items that customers can buy
Services: favours that are done for you
Needs: Essential necessities
Wants: Neverending desires

The economic problem:
Unlimited wants + Limited resources = Scarcity

As humans, we have neverending wants but we don’t even have enough
resources to provide for our needs (essentials) causing a huge problem.
This scarcity can limit the choices available to us consumers.

Factors of production:
Land: natural resources (limited)
Labour: work and effort that people contribute to the production of goods
and services
Capital: machinery, tools and buildings used to produce goods and services
Entrepreneurship: a person who combines the other 3 factors of production
to earn a profit

Opportunity cost: The next best alternative that was given up by choosing
the best alternative

Specialization:
When people or a business focus on one thing that they are best at. Division
of labour is when production is split into different tasks and each worker
does a different one of the tasks.

Often used as a result of:
- low availability of machinery and technology
- increasing competition to keep cost low
- higher living standards

Advantages:
- workers (or business) becomes very well trained in that task increasing
efficiency and productivity

,- less time is wasted while moving working stations
- everything is organised

Disadvantages:
- workers (or business) becomes bored
- if a worker is lacking is affects the whole of production



Government support of startups
Reasons why:
- Job creation
- New ideas creating variety
- Greater competition leading to lower prices and higher prices
- To create specialised goods and services that are used in bigger
businesses e.g. electronic chips are
used in Samsung
- They could grow and become huge
- Lower cost (because it is a startup) therefore more people can afford it

How they support startups:
- grants and lower interest on loans
- lower tax on profit
- rent free premises
- support and advice from specialists


Types of business organisation
Public sector: part of the economy that is controlled by the government

Private sector: part of the economy that is owned and controlled by
individuals and companies for profit

Sole trader:
owned by person
Advantages:
- few legal requirements
- own boss; have complete control
- freedom to make decisions and schedules
- close relationship with customers

,- incentive to work hard
- don’t need to give information to anyone except tax office
- easy setup
- don’t need much capital
- keep all profit

Disadvantages:
- unlimited liability: if in debt, debtors can take whatever they want from
your belongings
- no one to discuss issues with
- no one to share expenses with
- sources of finance are limited
- likely to remain small; hard to grow
- business is 100% dependable on owner; no continuity

Partnership:
Two or more people who run a business together

Advantages:
- More capital is available allowing expansion
- Responsibilities shared
- Continuity

Disadvantages:
- Unlimited liability
- Disagreements will be had
- Risky if all parties don’t work hard
- Business growth can be limited due to maximum limit of partners in some
countries
- If a partner decides to leave, the business needs to be reformed

To be successful:
- Partners need to have similar goals, plans and views
- Partners need to all work hard
- Deed of partnership written legal agreement between partners

Limited Partnership: limited liability but no shares can be sold/bought; will
continue after death

, Private limited company:
Owned by people who buy shares (shareholders) who appoint directors to
run the business (majority shareholders) ; Separate legal identity -
incorporated.

Advantages:
- Large amounts of shares can be sold to friends and family (not publicly
exposed) = capital = expand
- Limited liability
- Original owners maintain control (as long as they own the majority of the
shares

Disadvantages:
- Lots of legal requirements
- Shares cannot be sold to anyone without the consent of all other
shareholders
- Can’t sell shares to the public
- Accounts must be sent to the Registrar of of companies and available to
the public

Public limited company:
A company that sells shares to the public; not run by the government

Advantages:
- Limited liability
- Incorporated business
- Possible to raise lots of capital
- No restrictions on the selling/transferring of shares
- Has a higher status making it easier to get suppliers and loans

Disadvantages:
- Original owners could lose control if they don’t own the majority of shares
anymore
- Difficult to manage and control
- Expensive to sell
- Lots of legal requirements and regulations to protect shareholders
- Must publish accounts
- Shareholder’s only power is the election of managers (directors) at the
Annual General Meeting

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller faithchivaka. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $14.08. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

52510 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$14.08
  • (0)
Add to cart
Added