Section 1:Business and the environment in which it operates

1.1 Business activity

Unit 1: Introduction to business activity
Learning Summary
By the end of this unit you should understand:
 The difference between needs and wants
 The purpose of business activity
 The link between scarcity and opportunity cost
 The four factors of production
 The meaning of 'added value'
Unit 2: Classification of business
Learning Summary
By the end of this unit you should understand:
 The difference between primary, secondary and tertiary sectors
 The chain of production
 Why different countries are Involved in different business activities

To make the best use of limited resources, businesses try to focus or specialise on activities they
can do well.

Unit 3: Business growth and the measurement of size

Learning Summary
By the end of this unit you should understand:
 The different ways of measuring size of a business
 The problems of using different methods to measure size of a business
 The various ways a business can grow
 Why businesses want to grow
 The problems of growth
Unit 4: National wealth and business activity
Learning Summary
By the end of this unit you should understand:
 Impact of business activity on the environment
 Impact of business activity on the national wealth, the depletion of natural resources
and sustainable development
 The reason why sustainabilty is Important
1.2 The organisation
Unit 5: The organisation
Learning Summary
By the end of this unit you should understand:
 The main business objectives and their importance
 The different stakeholders and their objectives
 The objectives of private and public sector enterprises
1.3 Changing business environment
Unit 6: Government influence
Learning Summary
By the end of this unit you should understand:
 The need for government intervention in business activity
  The role of government in Influencing business declsions
 The impact of tax and interost rates
Unit 7:Impact of technology on business
Learning Summary
By the end of this unit you should understand:
 The Impact of technological change on business
 The impact of internet and e-commerce on business
Unit 8: Business reaction to market change
Learning Summary
By the end of this unit you should understand:
 The reasons why consumer spending pattern may change
 Why markets have become more competitive
 The impact of Increased competition on consumers and businesses
1.4 Economic environment
Unit 9: Types of economy, competition and business
Learning Summary
By the end of this unit you should understand:
 The main differences between a mixed and market economy
 The impact of uncompetitive markets on consumers
Unit 10: International trade
Learning Summary
By the end of this unit you should understand:
 The main reasons for international trade
 The problems of entering new markets abroad
 The barriers to International trade
 The effect of exchange rates on businesses

Section 2: Business structure, organisation and control

2.1 Ownership and Internal organisation

Unit 11: Sole traders and partnerships

Learning Summary
By the end of this unit you should understand:
 The role of an entrepreneur
 The main features of a sole trader
 The main features of partnerships
 The meaning of limited liability
Unit 12: Limited companies

Unit 13: Other types of business

Unit 14: Objectives, growth and business organisation

Unit 15: Multinational business

Unit 16: Internal organisation

Unit 17: Internal and external communication

 Unit 18: Effective communication

2.2 Financing business activity

Unit 19: Need for finance

Unit 20: Financing business activity

Section 3: Business activity to achieve objectives

3.1 Marketing

Unit 21: Customers,markets and marketing

Unit 22: Market research

Unit 23: Presentation and use of data

Unit 24: The marketing mix Product

Unit 26: Price

Unit 27: Place

Unit 28: Promotion

Unit 29: Marketing strategy and budgets

3.2 Production (operations management)

Unit 30: How are goods produced

Unit 31: Costs

Unit 32: Löcation

Unit 33: Improving efficiency

3.3 Financial information and decision making

Unit 34: Cash and cash flow forecasts

Unit 35: Financial accounts

Unit 36: Interpreting financial accounts

Section 4: People in business

4.1 Human needs and rewards

Unit 37: Why people work

Unit 38: Management styles and motivation

4.2 Manpower

Unit 39: Recruiting, training and terminating employees

Section 5: Regulating and controlling business activity

Unit 40: The impact of business decisions

 Unit 41: Government regulation

Unit 42: Other influences on business activity

12 Learning Summary By the end of this unit you should understand: What is a limited company The
main features of shareholders The main features of private limited companies The main features of
public limited companies

13 Learning Summary By the end of this unit you should understand: The main features of franchlses
The main features of jolnt ventures

14 Learning Summary By the end of this unit you should understand: Relationship between
objectives, growth and business organisation Factors to consider when choosing a sultable form of
business organisation Reasons for differences in the size of organisation

15 Learning Summary By the end of this unit you should understand: The reasons for growth of
multinational companies The Importance of multinationals The impact of multinationals on the
countries in which they are based Ihe other Issues about multinationals to consider

16 Learning Summary By the end of this unit you should understand: The roles, responsibilities and
interrelationships of people within organisations The main features of an organisation chart The
concepts of span of control, hierarchy, delegation and chain of command The reasons why
organisation charts may change as a business grows

17 Learning Summary By the end of this unit you should understand: The importance of
communication in business The difference between internal and external communication Barrlers to
effective communication and ways to overcome them

18 Learning Summary ay the end of this unit you should understand: The methods of communication
The factors to consider when choosing a method of communication

19 Learning Summary By the end of this unit you should understand: The reasons why businesses
need finance The importance of working capital

20 Learning Summary By the end of this unit you should understand: The sources of internal and
external finance .The difference between short-term and long term finance The difference between
loans and shares The factors which affect the method of finance chosen

21 Learning Summary By the end of this unit you should understand: The role of marketing The
difference between mass market and niche market The concept of market segmentation The
difference between market orientation and product orientation

22 Learning Summary By the end of this unit you should understand: The need for market research
The methods of primary and secondary research The different methods of sampling The limitations
of market research

23 Learning Summary By the end of this unit you should understand: The different ways of
presenting data The need to draw simple conclusions from data
24 Learning Summary By the end of this unit you should understand: The purpose of the marketing
mix The four parts of the marketing mix

25 Learning Summary By the end of this unit you should understand: The Importance of product The
product life cycle The role of package The importance of branding

26 Learning Summary By the end of this unit you should understand: The significance of price
elasticity of demand The main methods of pricing

27 Learning Summary By the end of this unit you should understand: The channels of distribution
The difference between a wholesaler and agent The factors to consider when choosing a method of
distribution

28 Learning Summary By the end of this unit you should understand: The alms of promotion e The
different methods of promotion .The factors to consider when choosing which method to use

29 Learning Summary By the end of this unit you should understand: The role of a marketing plan
The Importance of a marketing budget

30 Learning Summary By the end of this unit you should understand: The role of production The
different methods of production

31 Learning Summary By the end of this unit you should understand: The different classification of
costs The role of break even analysis in declsion making The benefits and Ilimitations of break even

32 Learning Summary By the end of this unit you should understand: The factors affecting location
decisions for a business Choosing the best location for different types of business

33 Learning Summary By the end of this unit you should understand: The concept of
productivity .The difference between efficiency and productivity The methods of improving
efficiency The different methods of lean production The importance of quality control

34 Learning Summary By the end of this unit you should understand: The importance of cash The
benefits of using a cash flow forecast The role of a budget

35 Learning Summary By the end of this unit you should understand: The reason why profit matters
to businesses The difference between cash and profit The main features of a profit and loss
account .The main features of a balance sheet

36 Learning Summary By the end of this unit you should understand: The main ratios used to
interpret accounts The different users of accounts The limitations of ratio analysis

37 Learning Summary By the end of this unit you should understand: The role of work in satisfying
human needs The concept of motivation .The methods of financial rewards The methods of non-
financial rewards

38 Learning Summary By the end of this unit you should understand: The role of work in satisfying
human needs The concept of motivation .The methods of financial rewards The methods of non-
financial rewards

39 Learning Summary By the end of this unit you should understand: The stages in the recruitment
and selection process The difference between Internal and external recruitment The different
methods of training The difference between dismissal and redundancy
40 Learning Summary By the end of this unit you should understand: The reasons for government
intervention The methods of government intervention The difference between nationalisation and
privatisation The role of competition policy The Impact of international trade

41 Learning Summary By the end of this unit you should understand: The role of trade unions The
forms of industrial action The Importance of health and safety The concept of ethics in business

42 Learning Summary By the end of this unit you should understand: The role of pressure groups The
different stages of the business cycle