iGCSE Business Revision
Slides
Pearson Edexcel International GCSE in Business (4BS1)
,1 Business Activity and
Influences on Business
, Key Revision Points
The Basic Economic Problem
What a Business is and its Purpose
Aims & Objectives + SMART Objectives + 4 Reasons why Businesses Need Objectives
Financial and Non-financial Aims + 3 Examples Each
5 Reasons why Business change their Aims
Limited vs Unlimited Liability + Characteristics
Setting up an LTD
Public Limited Company vs Private Limited Company + Pros & Cons
3 Types of Business Organizations
Sole Traders + Pros & Cons
, Key Revision Points
Partnerships + Pros & Cons
Components of a Deed of Partnership (PECCN)
Franchises + Pros & Cons
3 Types of Social Enterprises
5 Factors which Affect Location Decisions
MNCs + Pros and Cons
4 Ways Businesses Judge Success
3 Reasons Business Fail + Administration/Liquidation
, Key Revision Points
Exchange Rate
Effect of Changing Exchange Rate on Local and Foreign Businesses
Fiscal Policy
Monetary Policy
Supply-side Policy + Examples
PEST
, Business An organisation involved in the production of goods and services. They exist to satisfy
needs and wants to make a profit and return on their investment.
Sole Trader A business owned by an individual.
Partnership A business owned by 2 or more partners.
Franchise When a franchisor allows another operator (the franchisee) to operate a business under
their name in exchange for a fee and a recurring cut of the profits.
Franchisee Someone who purchases a franchise license from a franchisor in order to open a franchise.
Franchisor The owner of the business who sells franchise licenses to franchisees.
Franchise License A license which grants the usage of trademarked techniques, names, and symbols.
Franchise Agreement A legal document signed by the franchisor and franchisee laying out strict rules for the
franchisee to follow in the operation of the franchise.
Limited Liability When a business is legally distinct from its owner. The business operates separately from
the owner.
Unlimited Liability When a business is legally the same as its owner. The business operates under the name of
the owner.
, Certificate of A document which shows that the company has officially come into existence.
Incorporation
Articles of Association A document which lays out who and where the business is, and what they do.
Memorandum of A document which acts as an internal rulebook, laying out rules for the operation of the
Association business.
Public Limited A company whose shares can be sold and bought on a stock exchange between
Company shareholders
Private Limited Shares can only be bought and sold between people known by pre-existing shareholders
Company (typically the owners)
Social Enterprises A business which has primarily non financial aims, such as working for human, animal, and
environmental causes
Consumer A social enterprise which is owned by its customers.
Cooperative
Worker Cooperative A social enterprise which is owned by its employees
Charity A social enterprise which donates money to social or environmental causes, funded by
donations and grants.
, Aims Overall goals set to be achieved by a business.
Objectives SMART goals set by a business in order to achieve their aims.
MNC (multinational corporations) Businesses which have operations in 2 or more countries.
Administration The period when a group of independent specialists are brought in to help a failing
business recover.
Liquidation When a business sells all of its assets in order to pay off debts.
, Humans wants are unlimited but resources are scarce.
therefore
How do we allocate our resources to best satisfy human
wants and needs?
An opportunity cost is the next best alternative foregone, and all of our choices have one. For example, if I
went ice skating, I couldn’t also go swimming, as I only have a limited amount of time.
The government has a limited amount of money (scarcity) and must decide on whether to use it to build a
road or construct a hospital (choice). The government chooses to construct the hospital instead of the road.
The opportunity cost here are the benefits from the road that they have sacrificed (opportunity cost).
, A business is an organisation which is involved in the
production of goods and services.
They exist to satisfy consumer wants and needs to make a
profit or return on their investment.
To satisfy wants and needs, businesses use inputs and produce outputs in a process
known as production.
The outputs of production can be classified into goods and services. Goods are tangible
assets, for example, mobile phones. Services are intangible activities provided by other
people, for example, education or healthcare.
Slides
Pearson Edexcel International GCSE in Business (4BS1)
,1 Business Activity and
Influences on Business
, Key Revision Points
The Basic Economic Problem
What a Business is and its Purpose
Aims & Objectives + SMART Objectives + 4 Reasons why Businesses Need Objectives
Financial and Non-financial Aims + 3 Examples Each
5 Reasons why Business change their Aims
Limited vs Unlimited Liability + Characteristics
Setting up an LTD
Public Limited Company vs Private Limited Company + Pros & Cons
3 Types of Business Organizations
Sole Traders + Pros & Cons
, Key Revision Points
Partnerships + Pros & Cons
Components of a Deed of Partnership (PECCN)
Franchises + Pros & Cons
3 Types of Social Enterprises
5 Factors which Affect Location Decisions
MNCs + Pros and Cons
4 Ways Businesses Judge Success
3 Reasons Business Fail + Administration/Liquidation
, Key Revision Points
Exchange Rate
Effect of Changing Exchange Rate on Local and Foreign Businesses
Fiscal Policy
Monetary Policy
Supply-side Policy + Examples
PEST
, Business An organisation involved in the production of goods and services. They exist to satisfy
needs and wants to make a profit and return on their investment.
Sole Trader A business owned by an individual.
Partnership A business owned by 2 or more partners.
Franchise When a franchisor allows another operator (the franchisee) to operate a business under
their name in exchange for a fee and a recurring cut of the profits.
Franchisee Someone who purchases a franchise license from a franchisor in order to open a franchise.
Franchisor The owner of the business who sells franchise licenses to franchisees.
Franchise License A license which grants the usage of trademarked techniques, names, and symbols.
Franchise Agreement A legal document signed by the franchisor and franchisee laying out strict rules for the
franchisee to follow in the operation of the franchise.
Limited Liability When a business is legally distinct from its owner. The business operates separately from
the owner.
Unlimited Liability When a business is legally the same as its owner. The business operates under the name of
the owner.
, Certificate of A document which shows that the company has officially come into existence.
Incorporation
Articles of Association A document which lays out who and where the business is, and what they do.
Memorandum of A document which acts as an internal rulebook, laying out rules for the operation of the
Association business.
Public Limited A company whose shares can be sold and bought on a stock exchange between
Company shareholders
Private Limited Shares can only be bought and sold between people known by pre-existing shareholders
Company (typically the owners)
Social Enterprises A business which has primarily non financial aims, such as working for human, animal, and
environmental causes
Consumer A social enterprise which is owned by its customers.
Cooperative
Worker Cooperative A social enterprise which is owned by its employees
Charity A social enterprise which donates money to social or environmental causes, funded by
donations and grants.
, Aims Overall goals set to be achieved by a business.
Objectives SMART goals set by a business in order to achieve their aims.
MNC (multinational corporations) Businesses which have operations in 2 or more countries.
Administration The period when a group of independent specialists are brought in to help a failing
business recover.
Liquidation When a business sells all of its assets in order to pay off debts.
, Humans wants are unlimited but resources are scarce.
therefore
How do we allocate our resources to best satisfy human
wants and needs?
An opportunity cost is the next best alternative foregone, and all of our choices have one. For example, if I
went ice skating, I couldn’t also go swimming, as I only have a limited amount of time.
The government has a limited amount of money (scarcity) and must decide on whether to use it to build a
road or construct a hospital (choice). The government chooses to construct the hospital instead of the road.
The opportunity cost here are the benefits from the road that they have sacrificed (opportunity cost).
, A business is an organisation which is involved in the
production of goods and services.
They exist to satisfy consumer wants and needs to make a
profit or return on their investment.
To satisfy wants and needs, businesses use inputs and produce outputs in a process
known as production.
The outputs of production can be classified into goods and services. Goods are tangible
assets, for example, mobile phones. Services are intangible activities provided by other
people, for example, education or healthcare.
