IGCSE business
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IGCSE business - Leaderboard
IGCSE business - Details
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582 questions
| 🇬🇧 | 🇬🇧 |
| Economic problem | There exists unlimited wants but limited resources to produce the goods and services to staisfy these wants |
| Capital employed | Total value of capital used in the business |
| Capital employed | Total value of capital used in the business |
| Factors of production | Resources needed to produce goods or services |
| Franchises | A business based upon the use of the brand names, promotional logos, and trading methods of an existing successful business |
| The 4 factors of production | Land (natural resources provided by nature), labour (number of people available to make products), capital (things needed to manufacture goods), enterprise (entrepreneurs/business owner) |
| Capital employed | Total value of capital used in the business |
| Objectives of public sector businesses | Financial, service, social |
| Franchises | A business based upon the use of the brand names, promotional logos, and trading methods of an existing successful business |
| Importance of specialisation | Allow people to be very good at one thing, which increases efficency |
| Opportunity cost | Is the next best alternative given up by choosing another item |
| Advantages of division of labour | Quicker and cheaper to train workers as fewer skills taught, less time wasted, workers are trained in one task so they are very good at it |
| Disadvantages of division of labour | Harder to replace, workers might get bored |
| Franchises | A business based upon the use of the brand names, promotional logos, and trading methods of an existing successful business |
| Needs | Is a good or service which is essential to living |
| Capital employed | Total value of capital used in the business |
| Capital employed | Total value of capital used in the business |
| Wants | Good or service which people would like to have but isn't essential for living, people's wants are unlimited |
| Capital employed | Total value of capital used in the business |
| Division of labour | Production process is split up into different tasks and each worker performs a tast |
| Economic problem | There exists unlimited wants but limited resources to produce the goods and services to staisfy these wants |
| Factors of production | Land, labour, capital, enterprise |
| Scarcity | Lack of sufficient products to fulfil the total wants to the population |
| Specialisation | When people and businesses concentrate on what they are best at |
| Importance of specialisation | Specialised machinery and technologies are now widely available, increasing competition means that businesses have to keep costs low |
| Division of labour | When the production process is split up into different tasks and each worker performs one of these, tasks |
| Advantages of division of labour | Workers are trained in one task and specialise in this which increases efficiency and output, less time is wasted moving from one workbench to another, quicker and cheaper to train workers as fewer skills need to be taught |
| Disadvantages of division of labour | Workers can become bored doing just one job and efficiency may fall, if one worker is absent and nobody else can do the job production might be stopped |
| De-industrialisation | When there is a decline in the importance of the secondary sector of industry in a country |
| Added value | Difference between selling price and materials and bought in costs |
| Private sector | Businesses not owned by the government |
| Public sector | Businesses owned and controlled by the government |
| Mixed economy | Both public and private sectors |
| Capital | Money invested in the business by the owners |
| How added value can be increased | Increase sale price and try to reduce the costs of materials |
| Primary sector | Extracts and uses natural resources to produce raw materials (woodcutter) |
| Secondary sector | Manufactures goods using raw materials from primary sector (furniture maker) |
| Tertiary sector | Provides services to consumers and the other sectors (retailer) |
| Advantages of being an entrepreneur | Independence, may become successful if the business grows, use your own ideas |
| De-industrialisation | Occurs when there is a decline in the importance of the secondary, manufacturing sector of industry in a country |
| Reasons for the changing importance of business classification | Sources of primary products become depleted, developed countries are losing competitiveness in manufacturing to newly industrialised countries like China |
| Public sector | Businesses owned and controlled by the government, will make their own decisions about what and how to produce and price, some goods and services are provided free of charge like health which is paid for by the taxpayer |
| Private sector | Businesses not owned by government these businesses will make their own decisions about what and how to produce and price |
| Capital | The money invested into a business by the owners |
| Mixed economy | Has both a private sector and a public sector |
| Capital employed | Total value of capital used in the business |
| Entrepreneur | Organises, operated and takes the risk for a new business venture |
| Characteristics of successful entrepreneurs | Innovative, creative, independent, optimistic, hard worker |
| Comparing business size is useful to who | Investors, governments, workers |
| Contents of a business plan | Description of the business, products and services, the market the business is targeting, financial information |
| How business plans assist entrepreneurs | They are forces to think ahead and plan out their business carefully which can help them get a loan |
| Why governments support business start-ups | Reduce unemployment, increase competition, benefit society |
| Internal growth | When a business expands its exisiting operations |
| External growth | A business takes over or merges with another business, often called intergration |
| Horizontal integration | A business merges with/takes over another business in the same industry at the same stage of production |
| Vertical integration | A business merges with/takes over another business in the same industry but at a different stage of production, can be backwards or forwards |
| Business plans uses | Help gain finance, careful planning reduces risk |
| Conglomerate integration | A business merges with/takes over another business in a different industry |
| How governments support business start-ups | Loans for small businesses at low interest rates, organising training for entrepreneurs, 'enterprise zones' which provide low-cost premises to start-up businesses |
| Capital employed | Total value of capital used in the business |
| Why governments support business star-ups | Reduce unemployment, benefit society, increase competiton |
| Methods to compare business sizes | Number of people employed, value of output, value of sales |
| Limitations for number of people employed, value of output, value of sales | Some firms use production methods that employee few people but produce high output levels, a high level of output does not mean a business is large, could be misleading because of higher end products |
| Why owers might want to expand a business | Possibility of higher profits, larger share of the market, lower average cost |
| Different ways a business can grow | Internal, external involving a takeover or a merger |
| 3 examples of external growth | Horizontal merger, vertical merger, conglomerate intergration |
| Advantages of a sole trader | Has complete control over the business, incentive to work hard because he can keep all the profits, can choose which hours he works |
| Disadvantages of a sole trader | Unlimited liability, if owner is sick nobody will take care of business, no more capital invested |
| Disadvantages of a partnership | Share profits, have disagreements, different ways of managing a business (culture) |
| Advantages of a partnership | More capital invested, share ideas, the business will continue to run if you're sick |
| Internal growth | Occurs when a business expands its existing operations |
| Limited liability | You only have to pay back the capital you invested in the business |
| External growth | When a business takes over or merges with another business, it is often called integration as one business is integrated into another |
| Takeover | One business buys out the owners of another business, which then becomes part of the business which has taken it over |
| Merger | The owners of two businesses agree to join their businesses together to make one business |
| Horizontal integration | When one business merges with or takes over another one in the same industry at the same stage of production |
| Vertical integration | One business merges with or takes over another one in the same industry but at a different stage of production |
| Private limited companies | Businesses owner by shareholders, but they cannot sell shares to the public |
| Francise | A business based upon the use of the brand names, promotional logos, and trading methods of an existing successful business |
| Conglomerate integration | When a business merges with or takes over a business in a completely different industry |
| Public limited companies | Businesses owner by shareholders, but they can sell shares to the public |
| Problems linked to business growth and how these might be overcome | Larger business is difficult to control (operate the business in small units), cost of expansion (expand more slowly), larger business leads to poor communication (operate the business in small units) |
| Causes of business failure | Lack of management skills, changes in business environment, over expansion |
| Annual general meeting | Shareholders can vote on who they want to be on the board of directors |
| Dividends | Payments made to shareholders from the profits of a company |
| Why some businesses remain small | The type of industry the business operates on, market size, owners objectives |
| Advantages to the franchisor | Expansion is faster, management of the outlet is the responsibility of franchisee, franchisee has to buy the use of the brand name |
| Disadvantages to the franchisor | Franchisee keeps all the profits, poor management can lead to a bad reputation for the brand, pay for advertising |
| Advantages to the franchisee | Franchisor pays for advertising, chances of business failure are reduced, training for staff is provided by manager |
| Disadvantages to the franchisee | License fee must be paid to the franchisor, cannot change products to suit area/locally, less independence |
| Market share | Percentage of total market sales held by one brand or business |
| Why new businesses are at a greater risk of failing | Lack of finance, poor planning, owners of a business may lack experience and decision-making skills |
| Sole trader | Business owned by one person |
| Partnership | Is a form of business in which two or more people agree to jointly own a business |
| Private limited company | Businesses owner by shareholders, but they cannot sell shares to the public |
| Joint venture | 2 or more businesses start a new project together sharing capital, risks and profits |
| Business objectives | Aims or targets that a business works towards |
| Public limited company | Businesses owner by shareholders, but they can sell shares to the public |
| Franchises | A business based upon the use of the brand names, promotional logos, and trading methods of an existing successful business |
| Joint ventures | 2 or more businesses start a new project together sharing capital, risks and profits |