Pearson Edexcel International GCSE (9-1) ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
Business - 1 - Business activity and influences ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
on business ||/|\|||
Financial aims and objectives ||/|\||| ||/|\||| ||/|\|||
Are linked to money. Their goal is to either make sure the business can afford to keep
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
running or help it to make a profit. ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
Survival
Is a very common objective for a small business. Business survival refers to keeping the
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
business operating for a certain amount of time. Most businesses initially aim to survive ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
their first year. ||/|\||| ||/|\|||
Profit
Refers to any money left over after all costs have been taken away from any revenue made by ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
a business. Businesses usually aim to make a profit within the first two years.
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
Sales
Refer to an amount of a product or service sold by a business. A business will set a target for
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
how much it wants to sell each month and year. This gives the business a target to aim for
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
and a purpose to what its employees do each day.
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
Market share ||/|\|||
Refers to the percentage of the market that a business occupies. The market is the industry ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
that a business operates in, for example the fast food industry. An example of an objective
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
for market share might be 'to have 5% share of the fast food market within a 100-mile radius
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
in the first 12 months'.
||/|\||| ||/|\||| ||/|\||| ||/|\|||
Financial security ||/|\|||
Relates to a business being able to afford to pay off all its costs and have enough cash left to ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
survive. It also relates to an entrepreneur achieving a level of income that will allow them to ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
keep the business operating. ||/|\||| ||/|\||| ||/|\|||
, Non-financial aims and objectives ||/|\||| ||/|\||| ||/|\|||
Are linked to anything other than making money for the business. These are usually linked
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
to personal reasons behind an entrepreneur setting up a business.
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
Social objectives ||/|\|||
Are linked to doing things in an ethical or environmentally friendly manner, or having a
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
business whose sole purpose is to meet a social need. For example, an entrepreneur may aim ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
to provide only products that are sustainably sourced or use only solar energy to power their
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
business.
||/|\|||
Personal satisfaction ||/|\|||
Relates to an entrepreneur feeling satisfaction that they have created a successful business.
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
It may be that an entrepreneur is able to make a business out of a hobby or personal interest.
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
Challenge
Relates to an entrepreneur setting up a business with the intention that making it successful
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
will challenge them or take them out of their comfort zone.
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
Control
Relates to an entrepreneur's goal of being able to control the business and make decisions||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
about how it is run. These aims and objectives may relate to decisions around what the
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
business sells, where it buys raw materials from, and how much its product or service is sold ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
for.
||/|\|||
Independence
Relates to an entrepreneur working for themselves and running their own business. It is also
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
to do with them making their own key business decisions. A desire for independence is a
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
common reason for an entrepreneur to set up a business. ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
Why business aims and objectives change as businesses evolve: • in response to market
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
conditions ||/|\|||
The introduction of new products from competitors is an example of how the competitive
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
environment changes. Therefore a business in this situation may focus on protecting its ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
market share. ||/|\|||
Why business aims and objectives change as businesses evolve: • in response to technology
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
Business - 1 - Business activity and influences ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
on business ||/|\|||
Financial aims and objectives ||/|\||| ||/|\||| ||/|\|||
Are linked to money. Their goal is to either make sure the business can afford to keep
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
running or help it to make a profit. ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
Survival
Is a very common objective for a small business. Business survival refers to keeping the
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
business operating for a certain amount of time. Most businesses initially aim to survive ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
their first year. ||/|\||| ||/|\|||
Profit
Refers to any money left over after all costs have been taken away from any revenue made by ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
a business. Businesses usually aim to make a profit within the first two years.
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
Sales
Refer to an amount of a product or service sold by a business. A business will set a target for
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
how much it wants to sell each month and year. This gives the business a target to aim for
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
and a purpose to what its employees do each day.
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
Market share ||/|\|||
Refers to the percentage of the market that a business occupies. The market is the industry ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
that a business operates in, for example the fast food industry. An example of an objective
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
for market share might be 'to have 5% share of the fast food market within a 100-mile radius
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
in the first 12 months'.
||/|\||| ||/|\||| ||/|\||| ||/|\|||
Financial security ||/|\|||
Relates to a business being able to afford to pay off all its costs and have enough cash left to ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
survive. It also relates to an entrepreneur achieving a level of income that will allow them to ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
keep the business operating. ||/|\||| ||/|\||| ||/|\|||
, Non-financial aims and objectives ||/|\||| ||/|\||| ||/|\|||
Are linked to anything other than making money for the business. These are usually linked
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
to personal reasons behind an entrepreneur setting up a business.
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
Social objectives ||/|\|||
Are linked to doing things in an ethical or environmentally friendly manner, or having a
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
business whose sole purpose is to meet a social need. For example, an entrepreneur may aim ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
to provide only products that are sustainably sourced or use only solar energy to power their
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
business.
||/|\|||
Personal satisfaction ||/|\|||
Relates to an entrepreneur feeling satisfaction that they have created a successful business.
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
It may be that an entrepreneur is able to make a business out of a hobby or personal interest.
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
Challenge
Relates to an entrepreneur setting up a business with the intention that making it successful
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
will challenge them or take them out of their comfort zone.
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
Control
Relates to an entrepreneur's goal of being able to control the business and make decisions||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
about how it is run. These aims and objectives may relate to decisions around what the
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
business sells, where it buys raw materials from, and how much its product or service is sold ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
for.
||/|\|||
Independence
Relates to an entrepreneur working for themselves and running their own business. It is also
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
to do with them making their own key business decisions. A desire for independence is a
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
common reason for an entrepreneur to set up a business. ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
Why business aims and objectives change as businesses evolve: • in response to market
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
conditions ||/|\|||
The introduction of new products from competitors is an example of how the competitive
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
environment changes. Therefore a business in this situation may focus on protecting its ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
market share. ||/|\|||
Why business aims and objectives change as businesses evolve: • in response to technology
||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\||| ||/|\|||
