Summary AS-Level Business (9609) Condensed Notes ()
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Module
AS-Level Business
Institution
Fifth Year / 11th Grade
Book
Cambridge International as & a Level Business Coursebook with Digital Access (2 Years) [With eBook]
Get straight to the point with these condensed AS-Level Business notes! Covering all topics, these short and focused notes are perfect for quick revision and grasping key concepts efficiently—your ultimate tool for exam success!
AS-Level Business (9609) Finance Section (2 chapters) short notes + flashcards included
NOTES FOR CAIE BUSINESS 9609 AS LEVEL
Summary of Corporate Planning and Implementation A level cie
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,Table of Contents
Unit 1: Chapter 1 .....................................................................................................................................................2
Unit 1: Chapter 2 .....................................................................................................................................................4
Unit 1: Chapter 3 .....................................................................................................................................................7
Unit 1: Chapter 4 .....................................................................................................................................................9
Unit 1: Chapter 5 ................................................................................................................................................... 12
Unit 2: Chapter 10 ................................................................................................................................................. 13
Unit 2: Chapter 11 ................................................................................................................................................. 15
Unit 2: Chapter 12 ................................................................................................................................................. 18
Unit 3: Chapter 16 ................................................................................................................................................. 20
Unit 3: Chapter 17 ................................................................................................................................................. 23
Unit 3: Chapter 18 ................................................................................................................................................. 26
Unit 3: Chapter 19 ................................................................................................................................................. 30
Unit 4: Chapter 22 ................................................................................................................................................. 34
Unit 4: Chapter 23 ................................................................................................................................................. 35
Unit 4: Chapter 24 ................................................................................................................................................. 40
Unit 5: Chapter 28 ................................................................................................................................................. 42
Unit 5: Chapter 29 ................................................................................................................................................. 44
Unit 5: Chapter 30 ................................................................................................................................................. 45
Unit 5: Chapter 31 ................................................................................................................................................. 48
,Unit 1: Chapter 1
Business: any organization that uses resources to meet the Role of an Entrepreneur
needs of customers by providing a product or service that Entrepreneur: someone who takes the financial risk of
they demand starting and managing a new venture
Consumer Goods: the physical and tangible goods sold to the They have: had an idea for a new business, invested some of
general public like cars, drinks, machines their own savings and capital, accepted the responsibility of
Consumer Services: the non-tangible products sold to the managing the business and accepted the possible risks of
general public like hotel accommodation, insurance services failure
Capital Goods: the physical goods used by industry to aid in Characteristics
the production of other goods and services Innovation: attract customers in innovative ways
and present their business differently from others in
Factors of Production the same market. This requires original ideas and an
Land: renewable and non-renewable resources of ability to do things differently.
nature Commitment and Self-Motivation: willingness to
Labour: manual and skilled workforce of the work hard, keen ambition to succeed, energy and
business focus as it may take many hours each day with a lot
Capital: finances and man-made resources used in of work that needs to be done.
Multiskilled: they will have to make/provide the
production like computers, machines (also called
product/service, promote it, sell it and keep
capital goods)
accounts. These different business tasks require a
Enterprise: risk taking individuals that combine the person who has many different qualities/skills with
other factors of production into a unit capable of keen and ability to learn more required skills.
producing goods or services Leadership: lead by example and personality that
encourages people in the business to follow and be
motivated.
Self-Confidence: setbacks occur and they must have
belief in themselves that the business would bounce
back from any setbacks and not be discouraged by
it.
Risk Taking: willing to take risks in order to see
results. Often the risk is investing their own savings
into the new business.
Challenges
Identifying Opportunities: difficult to identify a
market need that will offer sufficient demand for
their product to allow the business to be profitable.
Sourcing Capital: it is crucial to raise the necessary
Creating Value: increasing the difference between the cost of capital needed for a business. It is difficult as: lack
purchasing raw materials and the price of the finished goods. of sufficient own finance, lack of awareness of
It requires effective management of resources. Mainly financial support and grants available, lack of
customer focused businesses are successful in creating value trading record to present to banks of past business
as customers are prepared to pay high prices for success, poorly produced business plan that fails to
products/services that exactly meet their needs convince potential investors.
Added value: the difference between the cost of purchasing Location: important point to consider is minimising
raw materials and the price of the finished goods fixed costs and keeping break-even level of output
low. Few aspects to consider while working from
Value created by a business is not the same as profit. If a home: close to market potential, status of locality,
business can create increased value without increasing its able to separate personal and work life, family
costs then profit will increase. tensions.
Competitions: Older and established businesses
Increase Added Value by: developing the shop, increasing with more resources and market knowledge is
quality of service, attractive packaging, establish brand experienced. However, by offering better customer
Economic problem: there are insufficient goods to satisfy all service, it is possible to overcome the cost and
of our needs and wants at any one time pricing advantages that bigger businesses offer.
Opportunity Cost: The next most desired product given up Building Customer Base: The long-term strength of
becomes the ‘lost opportunity’ or opportunity cost the business will depend on encouraging customers
to return to purchase products again and again. By
offering personal customer service, pre and after
sale services and customer requests will help to
retain customers.
, Why do businesses fail? Impact of Enterprises in a Country
Lack of Record Keeping: they believe it is less Employment Creation: national level of
important than meeting customer needs or think unemployment will fall and if the business
they can remember everything. They need evidence expands more jobs will be created to supply
for taxes, when is the next customer due, whether them.
the cheque from a customer was received or Economic Growth: increase in gross domestic
checking how many hours an employee worked. It is product of a country and lead to an increase in
advisable to keep paper records incase computer living standards. Increase in output and
crashes. consumption will lead to increase in tax
Lack of Cash and Working Capital: capital is needed revenues for the government.
for holding inventories, giving credit to customers, Innovation and Technological: more innovative
paying suppliers and more. To avoid not being able and creativity are introduced and make the
to do the same, construct a cash flow forecast and business sector competitive and help advance.
keep it updates, increase capital at start up, Exports: increase the country’s exports and
establish good relations with the bank so that short improve its international competitiveness.
term problems can be overcome and effective credit
control. Social Enterprise: a business with mainly social objectives
Poor Management Skills: they may have not that reinvests most of its profits into benefiting society rather
developed leadership, cash management, planning, than maximising returns to owners
communicating, marketing skills and more.
Changes in the Business Environment: business Objectives (Triple Bottom Line)
environment is dynamic (constantly changing) such Economic: make a profit and reinvest into the
as new competitors, legal changes, economic business with returning some to owners
changes, technological changes (old fashioned) Social: provide jobs and support to the community
Environmental: manage the business in an
Primary Sector: producing or extracting natural environmentally sustainable way
resources to be processed by other firms
Secondary Sector: manufacturing or processing
products out of raw materials
Tertiary Sector: providing services
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