Edexcel IGCSE Business Studies Activity Pack
2025/2026 – Practice and Application
1. *Chapter 1: What -Business activity *produces output* - a good/service
is business activi- -*Goods + services* consumed
ty?* -*Resources used*
-Number *business functions* carried out
-*External factors* a�ect business
-Businesses *aim to make pro t*
2. Consumer goods -smartphone
-magazine
-crisps
-handbag
-computer game
3. Consumer ser- -health care
vices: -banking
-air travel
-education
-garden design
4. Private enter- Most businesses owned *privately by individuals/groups individuals*. Private
prise sector
businesses. Objective make money.
5. Social enterprise Some organisations in private sector *non-pro t* making ie. charities.
6. Public enterprise Some goods + services provided by organisations owned by *central/local gov-
ernment*. Provide health care, education, policing etc.
7. Stakeholder Has interest in operation business.
Stakeholders:
-*Owners* - sets up + runs business.
-*Customers* - buy goods/services.
, -*Employees* - work for business. Depend on salary.
-*Managers* - help run most businesses. Run di�erent departments.
-*Financiers* - lend money to business. Have nancial interest. Keen for it to do
well.
-*Suppliers* - provide raw materials, parts, commercial services + utilities to other
businesses suppliers. Rely on each other.
-*Local community* - most businesses impact on local community. May provide
local employment
-*Government* - has interest in businesses. Provide employment, generate
wealth + collect taxes.
8. *Chapter 2: Busi- Successful with clear objectives as:
ness objectives* -Employees need something to *work towards*
-Owners have *motivation* to keep business going
-Help decide *direction* + steps needed to get there
-Easier to *assess performance* if clear objectives set
9. Financial objec- Important in private sector. Main nancial aims:
tives -*Survival*
-*Pro t*
Sales - growing sales means:
-lower costs
-larger market share
-higher public pro le
-more wealth for owners.
-Increase market share - to dominate market
-Financial security - Some owners only want enough pro t to provide nancial
security (pro t satis cing).
10. Non �nancial ob- Social objectives:
jectives -In public sector, *government owns businesses*, social objectives important.
-Some businesses social enterprises; charities + cooperatives improve *human +
, environmental well- being*.
-Personal satisfaction - Many businesses set up as they *may be happier* + more
*satis ed* working for themselves.
-Challenge - *Motivation* for some. Starting business very challenging. Business
people must be *committed, hardworking + multi-skilled*.
-Independence and control - desire to be *own boss*.
11. SMART objec- *S*peci c - stating aims clearly
tives *M*easurable - measurable in numbers
*A*chievable - using people involved
*R*ealistic - achievable with resources available
*T*ime speci c - stating period time to achieve it
12. Why might ob- -*Market conditions* - Operate in dynamic markets - must deal with regular
jectives change changes.
as businesses -*Technology* - Constant tech dev means businesses must adjust objectives.
evolve? -*Performance* - performance not constant. Ups and downs alternate.
-*Legislation* - adjusts to new legislation
-*Internal reasons* - may change objectives for internal reasons ie. change
ownership/senior management.
13. *Chapter 3: Sole Without entrepreneurs business would not exist in private sector. Role of entre-
traders, partner- preneurs:
ships, social en-
terprises and -*Innovators* make money out of business idea.
franchises.* -*Responsible* for organising factors production.
*Entrepreneurs* -Make *key decisions*.
-*Risk takers*. Risk losing money put into business.
14. Unincorporated *Unincorporated* - No legal distinction between owner + business. Everything
and carried out in name owner. Often small + owned by one person/small group.
, incorporated *Incorporated* - Separate legal identity from owners. Can sue, be sued, taken
businesses over or liquidated - limited companies. Owners shareholders.
15. Features of sole *One owner*. Can employ many. Varied roles.
trader
Advantages sole trader:
-*Owner keeps pro t*
-Independent - has *total control*
-*Simple to set up*. No legal requirements
-*Flexibility* - can adapt quickly
-Can o�er *personal service* as they are small
-May *qualify for government help*
Disadvantages of sole trader:
-*Unlimited liability*
-*struggle to raise nance* - too risky for lenders.
-Independence may be *too much responsibility*
-*Long hours. Very hard work*
-Often *too small to exploit economies of scale*
-*No continuity* - business dies with owner
16. Features of a *Between 2 - 20 people* own business together. No legal formalities to complete
partnership when formed. May produce *deed of partnership*. Legal document stating
partner's rights in event of dispute.
It states:
-*How much capital* each partner contributes
-*How pro ts (and losses) shared* among partners
-*Procedure for ending partnership*
-*How much control* each partner has
-*Rules for taking on new partners*
17.
2025/2026 – Practice and Application
1. *Chapter 1: What -Business activity *produces output* - a good/service
is business activi- -*Goods + services* consumed
ty?* -*Resources used*
-Number *business functions* carried out
-*External factors* a�ect business
-Businesses *aim to make pro t*
2. Consumer goods -smartphone
-magazine
-crisps
-handbag
-computer game
3. Consumer ser- -health care
vices: -banking
-air travel
-education
-garden design
4. Private enter- Most businesses owned *privately by individuals/groups individuals*. Private
prise sector
businesses. Objective make money.
5. Social enterprise Some organisations in private sector *non-pro t* making ie. charities.
6. Public enterprise Some goods + services provided by organisations owned by *central/local gov-
ernment*. Provide health care, education, policing etc.
7. Stakeholder Has interest in operation business.
Stakeholders:
-*Owners* - sets up + runs business.
-*Customers* - buy goods/services.
, -*Employees* - work for business. Depend on salary.
-*Managers* - help run most businesses. Run di�erent departments.
-*Financiers* - lend money to business. Have nancial interest. Keen for it to do
well.
-*Suppliers* - provide raw materials, parts, commercial services + utilities to other
businesses suppliers. Rely on each other.
-*Local community* - most businesses impact on local community. May provide
local employment
-*Government* - has interest in businesses. Provide employment, generate
wealth + collect taxes.
8. *Chapter 2: Busi- Successful with clear objectives as:
ness objectives* -Employees need something to *work towards*
-Owners have *motivation* to keep business going
-Help decide *direction* + steps needed to get there
-Easier to *assess performance* if clear objectives set
9. Financial objec- Important in private sector. Main nancial aims:
tives -*Survival*
-*Pro t*
Sales - growing sales means:
-lower costs
-larger market share
-higher public pro le
-more wealth for owners.
-Increase market share - to dominate market
-Financial security - Some owners only want enough pro t to provide nancial
security (pro t satis cing).
10. Non �nancial ob- Social objectives:
jectives -In public sector, *government owns businesses*, social objectives important.
-Some businesses social enterprises; charities + cooperatives improve *human +
, environmental well- being*.
-Personal satisfaction - Many businesses set up as they *may be happier* + more
*satis ed* working for themselves.
-Challenge - *Motivation* for some. Starting business very challenging. Business
people must be *committed, hardworking + multi-skilled*.
-Independence and control - desire to be *own boss*.
11. SMART objec- *S*peci c - stating aims clearly
tives *M*easurable - measurable in numbers
*A*chievable - using people involved
*R*ealistic - achievable with resources available
*T*ime speci c - stating period time to achieve it
12. Why might ob- -*Market conditions* - Operate in dynamic markets - must deal with regular
jectives change changes.
as businesses -*Technology* - Constant tech dev means businesses must adjust objectives.
evolve? -*Performance* - performance not constant. Ups and downs alternate.
-*Legislation* - adjusts to new legislation
-*Internal reasons* - may change objectives for internal reasons ie. change
ownership/senior management.
13. *Chapter 3: Sole Without entrepreneurs business would not exist in private sector. Role of entre-
traders, partner- preneurs:
ships, social en-
terprises and -*Innovators* make money out of business idea.
franchises.* -*Responsible* for organising factors production.
*Entrepreneurs* -Make *key decisions*.
-*Risk takers*. Risk losing money put into business.
14. Unincorporated *Unincorporated* - No legal distinction between owner + business. Everything
and carried out in name owner. Often small + owned by one person/small group.
, incorporated *Incorporated* - Separate legal identity from owners. Can sue, be sued, taken
businesses over or liquidated - limited companies. Owners shareholders.
15. Features of sole *One owner*. Can employ many. Varied roles.
trader
Advantages sole trader:
-*Owner keeps pro t*
-Independent - has *total control*
-*Simple to set up*. No legal requirements
-*Flexibility* - can adapt quickly
-Can o�er *personal service* as they are small
-May *qualify for government help*
Disadvantages of sole trader:
-*Unlimited liability*
-*struggle to raise nance* - too risky for lenders.
-Independence may be *too much responsibility*
-*Long hours. Very hard work*
-Often *too small to exploit economies of scale*
-*No continuity* - business dies with owner
16. Features of a *Between 2 - 20 people* own business together. No legal formalities to complete
partnership when formed. May produce *deed of partnership*. Legal document stating
partner's rights in event of dispute.
It states:
-*How much capital* each partner contributes
-*How pro ts (and losses) shared* among partners
-*Procedure for ending partnership*
-*How much control* each partner has
-*Rules for taking on new partners*
17.
