TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS
RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
iGCSE Business Studies Exam Study
Guide with Complete Solutions
Needs - Correct Answer✔️✔️-We cannot live without these.
Wants - Correct Answer✔️✔️-They benefit us but are not necessary to live.
Scarcity - Correct Answer✔️✔️-Lack of sufficient resources.
Needs (example) - Correct Answer✔️✔️-Water, food, housing.
Wants (example) - Correct Answer✔️✔️-Soft drinks, chocolate, furniture.
Opportunity Cost - Correct Answer✔️✔️-The next best alternative.
Factors of Production - Correct Answer✔️✔️-Resources needed to produce goods and
services.
Factors of Production (List) - Correct Answer✔️✔️-Land.
Labour.
Capital.
Enterprise.
Land - Correct Answer✔️✔️-All natural resources.
Land Resources (examples) - Correct Answer✔️✔️-Coal, oil, gas.
Labour - Correct Answer✔️✔️-Man-power used in a copmany
1/17
,TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS
RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
Capital - Correct Answer✔️✔️-Finance and machinery
Entrepreneur - Correct Answer✔️✔️-Someone who organises, operates and takes risks
in a new business venture.
Enterprise - Correct Answer✔️✔️-Skill/risk-taking ability of entrepreneurs.
Added Value
+How to add value
+Justify adding value - Correct Answer✔️✔️-The difference between selling price and
cost of materials.
Increase selling price, decrease cost of materials
The product must be desirable and important to customers
Sectors of Production
+What are the sectors (definitions and examples) - Correct Answer✔️✔️-The three stages
a product passes through before reaching the consumer.
Primary: Extracts/sells raw materials /Woodcutter
Secondary sector: Manufactures goods using raw materials/Furniture maker
Tertiary Sector: Sells products/ services to customers/DFS
Chain of Production - Correct Answer✔️✔️-The sequence of a product passing through
the three sectors of production
Specialisation
2/17
, TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS
RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
+Example - Correct Answer✔️✔️-When a business concentrates on a particular industry
or part of that industry.
Vauxhall makes only cars
Division of Labour - Correct Answer✔️✔️-When production is split into different tasks
performed by different people.
In a car plant, different people fitting the headlights, seats, etc.
Difference between Specialisation and Division of Labour - Correct Answer✔️✔️-
Specialization is usually on a company-wide level.
Division of labour deals with specific tasks.
Mixed Economy - Correct Answer✔️✔️-Has both a private and public sector.
Public Sector
+Example - Correct Answer✔️✔️-Businesses owned by the government, to provide the
people of a country.
Police service, free healthcare
Private Sector
+Example - Correct Answer✔️✔️-Businesses owned by private individuals for profit
Supermarket
Privatisation - Correct Answer✔️✔️-Governments selling parts of of whole businesses to
private sector firms
3/17
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS
RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
iGCSE Business Studies Exam Study
Guide with Complete Solutions
Needs - Correct Answer✔️✔️-We cannot live without these.
Wants - Correct Answer✔️✔️-They benefit us but are not necessary to live.
Scarcity - Correct Answer✔️✔️-Lack of sufficient resources.
Needs (example) - Correct Answer✔️✔️-Water, food, housing.
Wants (example) - Correct Answer✔️✔️-Soft drinks, chocolate, furniture.
Opportunity Cost - Correct Answer✔️✔️-The next best alternative.
Factors of Production - Correct Answer✔️✔️-Resources needed to produce goods and
services.
Factors of Production (List) - Correct Answer✔️✔️-Land.
Labour.
Capital.
Enterprise.
Land - Correct Answer✔️✔️-All natural resources.
Land Resources (examples) - Correct Answer✔️✔️-Coal, oil, gas.
Labour - Correct Answer✔️✔️-Man-power used in a copmany
1/17
,TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS
RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
Capital - Correct Answer✔️✔️-Finance and machinery
Entrepreneur - Correct Answer✔️✔️-Someone who organises, operates and takes risks
in a new business venture.
Enterprise - Correct Answer✔️✔️-Skill/risk-taking ability of entrepreneurs.
Added Value
+How to add value
+Justify adding value - Correct Answer✔️✔️-The difference between selling price and
cost of materials.
Increase selling price, decrease cost of materials
The product must be desirable and important to customers
Sectors of Production
+What are the sectors (definitions and examples) - Correct Answer✔️✔️-The three stages
a product passes through before reaching the consumer.
Primary: Extracts/sells raw materials /Woodcutter
Secondary sector: Manufactures goods using raw materials/Furniture maker
Tertiary Sector: Sells products/ services to customers/DFS
Chain of Production - Correct Answer✔️✔️-The sequence of a product passing through
the three sectors of production
Specialisation
2/17
, TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS
RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
+Example - Correct Answer✔️✔️-When a business concentrates on a particular industry
or part of that industry.
Vauxhall makes only cars
Division of Labour - Correct Answer✔️✔️-When production is split into different tasks
performed by different people.
In a car plant, different people fitting the headlights, seats, etc.
Difference between Specialisation and Division of Labour - Correct Answer✔️✔️-
Specialization is usually on a company-wide level.
Division of labour deals with specific tasks.
Mixed Economy - Correct Answer✔️✔️-Has both a private and public sector.
Public Sector
+Example - Correct Answer✔️✔️-Businesses owned by the government, to provide the
people of a country.
Police service, free healthcare
Private Sector
+Example - Correct Answer✔️✔️-Businesses owned by private individuals for profit
Supermarket
Privatisation - Correct Answer✔️✔️-Governments selling parts of of whole businesses to
private sector firms
3/17
