Business Revision


	Business Revision
	Causes Workers produce more goods as they are more motivated, due to an increase in salary. A business manager decides to make some of his workers redundant in order to decrease costs. A company chooses to advertise in an attempt to increase sales of a new product.	Effects The business's production rate increases and, as there are more products, sales increase, leading to an increase in profits. The business is less productive, due to their being less staff. Either the business manager's strategy will work and his revenue will increase or he will actually end up losing money because the workers he fired are not there to produce the goods. The company will probably benefit from the advertising, as more people will become aware of the product. Advertising is, however, quite expensive, so the company would have to make sure by using a business plan that it would be worth their while.
	Overall summary There are many causes and effects in business and it is important to write about what effect a cause has in the exam paper.

Workers produce more goods as they are more motivated, due to an increase in salary.
A business manager decides to make some of his workers redundant in order to decrease costs.
A company chooses to advertise in an attempt to increase sales of a new product.

The business's production rate increases and, as there are more products, sales increase, leading to an increase in profits.
The business is less productive, due to their being less staff. Either the business manager's strategy will work and his revenue will increase or he will actually end up losing money because the workers he fired are not there to produce the goods.
The company will probably benefit from the advertising, as more people will become aware of the product. Advertising is, however, quite expensive, so the company would have to make sure by using a business plan that it would be worth their while.

There are many causes and effects in business and it is important to write about what effect a cause has in the exam paper.

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