IGCSE Business (9-1)
Revision Guide
Student Name: _____________________________
,TOPIC: BUSINESS ACTIVITY
UNIT: BUSINESS ACTIVITY AND INFLUENCES ON BUSINESS
CHAPTER: 1
AO1: KNOWLEDGE AND UNDERSTANDING:
Features of business activity
Production of goods & services —> Consumers buy the goods and services —> Resources are used —>
Business functions are carried out (operations, marketing) —> External factors can affect the business
(PEST)—> Most business aim to make a profit.
Stakeholder Government Employees Owners Customers Managers Financiers Suppliers Local
Community
Interest Taxes Fair Pay Dividend Quality Fair Pay Return on Paid on Jobs
Investment Time
Jobs Safety Fair Price Safety High Quality
Services
AO1: KEY TERMS:
Business: Organisation that produces goods and services
Goods: Physical products, e.g. a mobile phone
Consumer Goods: Goods and services sold to consumers
Producer Goods: Goods and services sold to businesses
Services: Non-physical products
Needs: Basic requirements for human survival
Wants: Peoples desires for non essential items
Stakeholder: A person or group of people with an interest in a business
Private Sector: businesses owned by individuals or groups of individuals
Public Sector: Businesses owned or controlled by the government
Entrepreneur: A person who takes a risk in order to set up a business
Scarce Resources: resources with limited availability
AO4: Things to consider for the EVALUATION
Links to other topics:
Sources of Finance and Financial Documents –-> Stakeholder Interest
,TOPIC: BUSINESS OBJECTIVES
UNIT: BUSINESS ACTIVITY AND INFLUENCES ON BUSINESS
CHAPTER: 2
AO1: KNOWLEDGE AND UNDERSTANDING:
The importance of objectives: Motivating factor for employees. Lack of focus may cause business perfor-
mance to drop. Helps business in decision making and future planning. Helps the business to assess per-
formance.
Financial Objectives: Objectives which are associated with making money; They are Survival, Profit, Sales,
Increase Market Share, Financial Security.
Non-Financial Objectives: Objectives which are not connected with money. They are Social objectives,
Personal Satisfaction, Challenge, Independence.
SMART Objectives: Specific, Measurable, Achievable, Realistic, Time specific. An example is for a business
to increase its revenue by 8% in the next year.
AO1: KEY TERMS:
Objectives: Goals or targets set by a business
Maximization: making as much (profit, sales) as possible
Satisficing: making enough (profit, sales) to satisfy the needs of the owners
Legislation: law or set of laws
Large business: a business that employs more than 250 people
Small business: a business that employs less than 50 people
Revenue: money coming into the business from selling its product or service.
AO4: Things to consider for the EVALUATION
Factors affecting objectives
Size of business (small business—less than 50 people large business—more than 250 people)
Market Conditions
Technology
Performance
Legislation
Internal Reasons (Change in ownership)
, TOPIC: SOCIAL ENTERPRISES AND FRANCHISES
UNIT: BUSINESS ACTIVITY AND INFLUENCES ON BUSINESS
CHAPTER: 3
AO1: KNOWLEDGE AND UNDERSTANDING:
A franchise is an agreement where one business (franchisor) allows another business (franchisee) to trade
under their name. Examples include McDonalds and Starbucks. The Franchisor provides the brand, start-up
package, training, materials and marketing support. In return they receive a start up fee, an ongoing royalty
(% of sales).
Some businesses are social enterprises. They have social, environmental and human aims, rather than solely
making a profit. They generate a lot of their income through trade and donations. They re-invest most of
their profits. Social enterprises often take the form of cooperatives and charities.
AO3: ANALYSIS:
ADVANTAGES DISADVANTAGES
Franchisor Franchisor
• Fast and cheap method of growth • Profit is shared
• Franchisees bear some of the risk • Poor performing Franchisees can damage the
reputation
• Franchisees are more motivated than em-
ployees • Cost of support may be high
Franchisee Franchisee
• Less risk • Royalty (% of Sales) reduces their share of
AO4: Things to consider for the EVALUATION AO1: KEY TERMS:
• Suitability of the choice of ownership de- Cooperative: Organisation where the people in it
pends on: own an equal share of it.
Size of business
Consumer cooperative: Owned by consumers
Objectives
Retail cooperative: Owned by retailers
Finance available
Worker cooperative: Owned by its employees
Charities: Organisations that give money, goods or
help to people who are poor, sick or in need.
Revision Guide
Student Name: _____________________________
,TOPIC: BUSINESS ACTIVITY
UNIT: BUSINESS ACTIVITY AND INFLUENCES ON BUSINESS
CHAPTER: 1
AO1: KNOWLEDGE AND UNDERSTANDING:
Features of business activity
Production of goods & services —> Consumers buy the goods and services —> Resources are used —>
Business functions are carried out (operations, marketing) —> External factors can affect the business
(PEST)—> Most business aim to make a profit.
Stakeholder Government Employees Owners Customers Managers Financiers Suppliers Local
Community
Interest Taxes Fair Pay Dividend Quality Fair Pay Return on Paid on Jobs
Investment Time
Jobs Safety Fair Price Safety High Quality
Services
AO1: KEY TERMS:
Business: Organisation that produces goods and services
Goods: Physical products, e.g. a mobile phone
Consumer Goods: Goods and services sold to consumers
Producer Goods: Goods and services sold to businesses
Services: Non-physical products
Needs: Basic requirements for human survival
Wants: Peoples desires for non essential items
Stakeholder: A person or group of people with an interest in a business
Private Sector: businesses owned by individuals or groups of individuals
Public Sector: Businesses owned or controlled by the government
Entrepreneur: A person who takes a risk in order to set up a business
Scarce Resources: resources with limited availability
AO4: Things to consider for the EVALUATION
Links to other topics:
Sources of Finance and Financial Documents –-> Stakeholder Interest
,TOPIC: BUSINESS OBJECTIVES
UNIT: BUSINESS ACTIVITY AND INFLUENCES ON BUSINESS
CHAPTER: 2
AO1: KNOWLEDGE AND UNDERSTANDING:
The importance of objectives: Motivating factor for employees. Lack of focus may cause business perfor-
mance to drop. Helps business in decision making and future planning. Helps the business to assess per-
formance.
Financial Objectives: Objectives which are associated with making money; They are Survival, Profit, Sales,
Increase Market Share, Financial Security.
Non-Financial Objectives: Objectives which are not connected with money. They are Social objectives,
Personal Satisfaction, Challenge, Independence.
SMART Objectives: Specific, Measurable, Achievable, Realistic, Time specific. An example is for a business
to increase its revenue by 8% in the next year.
AO1: KEY TERMS:
Objectives: Goals or targets set by a business
Maximization: making as much (profit, sales) as possible
Satisficing: making enough (profit, sales) to satisfy the needs of the owners
Legislation: law or set of laws
Large business: a business that employs more than 250 people
Small business: a business that employs less than 50 people
Revenue: money coming into the business from selling its product or service.
AO4: Things to consider for the EVALUATION
Factors affecting objectives
Size of business (small business—less than 50 people large business—more than 250 people)
Market Conditions
Technology
Performance
Legislation
Internal Reasons (Change in ownership)
, TOPIC: SOCIAL ENTERPRISES AND FRANCHISES
UNIT: BUSINESS ACTIVITY AND INFLUENCES ON BUSINESS
CHAPTER: 3
AO1: KNOWLEDGE AND UNDERSTANDING:
A franchise is an agreement where one business (franchisor) allows another business (franchisee) to trade
under their name. Examples include McDonalds and Starbucks. The Franchisor provides the brand, start-up
package, training, materials and marketing support. In return they receive a start up fee, an ongoing royalty
(% of sales).
Some businesses are social enterprises. They have social, environmental and human aims, rather than solely
making a profit. They generate a lot of their income through trade and donations. They re-invest most of
their profits. Social enterprises often take the form of cooperatives and charities.
AO3: ANALYSIS:
ADVANTAGES DISADVANTAGES
Franchisor Franchisor
• Fast and cheap method of growth • Profit is shared
• Franchisees bear some of the risk • Poor performing Franchisees can damage the
reputation
• Franchisees are more motivated than em-
ployees • Cost of support may be high
Franchisee Franchisee
• Less risk • Royalty (% of Sales) reduces their share of
AO4: Things to consider for the EVALUATION AO1: KEY TERMS:
• Suitability of the choice of ownership de- Cooperative: Organisation where the people in it
pends on: own an equal share of it.
Size of business
Consumer cooperative: Owned by consumers
Objectives
Retail cooperative: Owned by retailers
Finance available
Worker cooperative: Owned by its employees
Charities: Organisations that give money, goods or
help to people who are poor, sick or in need.
