Business Studies Paper 1 Revision Handout and Study Guide 2024/2025

▪ Opportunity cost - AnsCost of the next best alternative use of money, time, or resources when one choice is made rather than another ▪ Business Plan Components - AnsExecutive summary; Product/service plan; Industry/market analysis; Operational plan; Organizational plan; Marketing plan; Financial plan ▪ stock flotation - AnsThe process of a LTD becoming a PLC ▪ limited liabilty - Ansthe only liability, or potential loss, a shareholder has if the company fails is the amount invested in the company, not the total wealth of the shareholder ▪ aims and objectives - Ansare the things that a business is trying to achieve, such as grow larger, or make more profit. ▪ factors of production - Ansland, labor, capital, enterprise ▪ Organic growth - AnsA business growth strategy that involves a business growing gradually using its own resources ▪ Inorganic Growth - AnsExpansion by merging with or taking over another business ▪ Procurement - AnsThe selection of suppliers ▪ Logistics - Ansthose activities that focus on getting the right amount of the right products to the right place at the right time at the lowest possible cost ▪ TQM - AnsA philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfactio