IGCSE Business Edexcel

Class notes

Teacher:Marinos Agathokleous
Chapter: What is business activity?

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 Chapter 1-What is business activity
Learning objectives:

Keywords:

 Premises- buildings and land used by a shop or business.

 Goods- physical products such as mobile phones or a pair of shoes.
 Services- non-physical products such as banking and car washing.
 Consumer good- goods and services sold to ordinary people rather than businesses.
 Producer goods- goods and services produced by one business for another.
 Needs- basic requirements for human survival.
 Wants- peoples desires for goods and services.

Three types of businesses:

 Private enterprise: owned by individuals or groups of individuals. Their aim is to

make profit.
 Social enterprise: these are non-profit making. For example charities. (UNICEF)
 Public enterprise: these are owned by the government. (Health care, education)

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Business stakeholders:
Stakeholder: an individual or group with an interest in the operation of a business.

 Owners: They are responsible to set up and run the business. Their aim is to make a
profit
 Customers: Buy the goods and services that businesses sells. They want a high
quality of products
 Employees: They work for the business. They want good working conditions fair pay
and benefits
 Managers: They help to run the business. They are often employed to run different
departments in to the business such as the marketing department, Finance department
the production department.
 Financers: They borrow money to the businesses. They may be banks or family
members or individual investors.
 Suppliers: They provide raw materials, Parts, Commercial services and utilities such
as electricity, water, heating
 Local community: Most business have a positive impact on the local community. A
business can employ a lot of people who live in the local community. On the other
hand a business can criticised from the local community because of a noisy factory
which causes a negative externality to the local residents.
 Government: The government has an interest in all the businesses because they pay
taxes and the provide employment. These money (Taxes) are used from the
government for healthcare, education and other purposes (Government spending)

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Exercises:
Question 1:(Edexcel book page 9)
Solve the following multiple choice questions:

Answers:
1. C 2.C 3.B 4.A
Case study question :( Edexcel book page 10)

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Questions:

Question marks:
Question 1-2 marks
Question 2-2 marks
Question 3-2 marks
Question 4-3 marks
Question 5-4 marks
Question 6-6 marks

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