Summary BTEC Business Level 3 Unit 1
Exploring the World of Business Exam
Partnership - ANSWER ✅ Comprising two or more people who set up in business
together and share all profits and losses.
Economy - ANSWER ✅ The state of a country, such as its wealth, production and
consumption of goods and services.
Private ownership - ANSWER ✅ Private businesses are those owned by citizens
and therefore they are liable for all aspects of the business. Owners of private
businesses are likely to take many risks as they are in business to make a profit.
Privately owned businesses can be of any size and owned by many partners.
Public ownership - ANSWER ✅ Public businesses which are identified as
belonging to the public sector are owned by the government. These types of
businesses may have been set up by the government or subsequently bought by the
government from the private sector for investment or to save them from financial
ruin, such as Northern Rock and the Royal Bank of Scotland. As the government is
then liable for the success or failure of the business, they are less likely to take
risks than businesses in the private sector because they aim to benefit the public.
Not-for-profit ownership - ANSWER ✅ Businesses which do not aim to make a
profit are often charitable organisations, such as the international Médecins Sans
Frontières which provides doctors and nurses across
the globe to in-need areas. Businesses like this often share many of the same
features as private and public businesses, such as running on normal business lines,
and have many
,paid workers but only seek to make enough money to cover running costs.
Organisational structure - ANSWER ✅ Organisations need a structure to enable
the business to operate effectively.
Hierarchical - ANSWER ✅ As the name suggests, this structure shows a
hierarchy of responsibility and authority showing who is responsible for what and
who has authority to make decisions regarding business operations.
Flat structure - ANSWER ✅ A flat structure is a simple example of what might be
a micro business. Larger businesses may also have this type of structure.
Bureaucracy - ANSWER ✅ Detailed procedures which have to be followed
(sometimes known as 'red tape').
Matrix structure - ANSWER ✅ The matrix type of structure is complex. It brings
together teams of people depending on their abilities to work on specific projects.
Holocratic structure - ANSWER ✅ A holocratic organisation structure offers a
holistic approach to running a business where responsibility and authority are
distributed amongst the workforce.
Functional/operational areas - ANSWER ✅ Businesses have several functions in
order to operate efficiently.
Mission statement - ANSWER ✅ Mission statements are often found at the front
of any marketing materials and websites. While a mission statement is intended to
, represent the overall aim of the business, it should be informed by the vision and
values of the business.
Vision statement - ANSWER ✅ A vision statement is easily confused with a
mission statement. Its aim is to clearly communicate the future plans for the
business, particularly to its employees. They can become involved in the plans for
the business and their jobs and organisation structure will need to support this
vision.
Values - ANSWER ✅ Organisational values will vary across businesses
depending on their overall aim. Businesses such as Sainsbury plc promote their
eagerness for growth, while Coca-Cola are keen to promote their commitment to a
sustainable environment. British Gas also promote their commitment to the
environment.
Private sector aims in business - ANSWER ✅ ▸ Making profits
▸ Profit maximisation
▸ Break-even
▸ Survival
▸ Growth
▸ Market leadership
Public sector aims in business - ANSWER ✅ ▸ Service quality
▸ Meeting government standards
▸ Service provision
▸ Cost control
▸ Value for money
Exploring the World of Business Exam
Partnership - ANSWER ✅ Comprising two or more people who set up in business
together and share all profits and losses.
Economy - ANSWER ✅ The state of a country, such as its wealth, production and
consumption of goods and services.
Private ownership - ANSWER ✅ Private businesses are those owned by citizens
and therefore they are liable for all aspects of the business. Owners of private
businesses are likely to take many risks as they are in business to make a profit.
Privately owned businesses can be of any size and owned by many partners.
Public ownership - ANSWER ✅ Public businesses which are identified as
belonging to the public sector are owned by the government. These types of
businesses may have been set up by the government or subsequently bought by the
government from the private sector for investment or to save them from financial
ruin, such as Northern Rock and the Royal Bank of Scotland. As the government is
then liable for the success or failure of the business, they are less likely to take
risks than businesses in the private sector because they aim to benefit the public.
Not-for-profit ownership - ANSWER ✅ Businesses which do not aim to make a
profit are often charitable organisations, such as the international Médecins Sans
Frontières which provides doctors and nurses across
the globe to in-need areas. Businesses like this often share many of the same
features as private and public businesses, such as running on normal business lines,
and have many
,paid workers but only seek to make enough money to cover running costs.
Organisational structure - ANSWER ✅ Organisations need a structure to enable
the business to operate effectively.
Hierarchical - ANSWER ✅ As the name suggests, this structure shows a
hierarchy of responsibility and authority showing who is responsible for what and
who has authority to make decisions regarding business operations.
Flat structure - ANSWER ✅ A flat structure is a simple example of what might be
a micro business. Larger businesses may also have this type of structure.
Bureaucracy - ANSWER ✅ Detailed procedures which have to be followed
(sometimes known as 'red tape').
Matrix structure - ANSWER ✅ The matrix type of structure is complex. It brings
together teams of people depending on their abilities to work on specific projects.
Holocratic structure - ANSWER ✅ A holocratic organisation structure offers a
holistic approach to running a business where responsibility and authority are
distributed amongst the workforce.
Functional/operational areas - ANSWER ✅ Businesses have several functions in
order to operate efficiently.
Mission statement - ANSWER ✅ Mission statements are often found at the front
of any marketing materials and websites. While a mission statement is intended to
, represent the overall aim of the business, it should be informed by the vision and
values of the business.
Vision statement - ANSWER ✅ A vision statement is easily confused with a
mission statement. Its aim is to clearly communicate the future plans for the
business, particularly to its employees. They can become involved in the plans for
the business and their jobs and organisation structure will need to support this
vision.
Values - ANSWER ✅ Organisational values will vary across businesses
depending on their overall aim. Businesses such as Sainsbury plc promote their
eagerness for growth, while Coca-Cola are keen to promote their commitment to a
sustainable environment. British Gas also promote their commitment to the
environment.
Private sector aims in business - ANSWER ✅ ▸ Making profits
▸ Profit maximisation
▸ Break-even
▸ Survival
▸ Growth
▸ Market leadership
Public sector aims in business - ANSWER ✅ ▸ Service quality
▸ Meeting government standards
▸ Service provision
▸ Cost control
▸ Value for money
