Business Studies Unit 1 Revision List

All the kep points that you need to know on Business Studies for Unit 1 Exam: Edexcel Board! 

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Business Studies Unit 1 Revision list
1.1 Spotting a business opportunity
1. Understand what a business does
2. Be able to explain the concepts of production, suppliers, customers and markets
Understanding customer needs
1. Understand that customer needs are central to starting business
2. Be able to explain the purpose and process of market research
3. Be able to explain the difference between primary and secondary research
4. Understand the difference between quantitative and qualitative research data
Market mapping
1. Analyse customer buying habits and preferences
2. Define market segmentation
3. Explain how businesses identify market segments
4. Be able to draw a market/ perceptual map
5. Be able to explain how businesses use the above information to identify and target
gaps in the market.
1. Understand that new businesses will need to find out about their competitors (their
strengths and weaknesses)
2. Be able to explain how businesses compete with each other

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Added value
1. Define added value
2. Describe sources of added value
3. Explain why adding value is important for businesses
1. Understand what a franchise is
2. Define franchisors and franchisees
3. What are the benefits of franchising to franchisor and franchisee?
4. What are the disadvantages of franchising for both franchisee and franchisor?
5. Identify a suitable start up location for a franchisee
1.2 Showing enterprise
What is enterprise?
1.…read more

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Invention and innovation
1. Appreciate how new ideas come about
2. Define invention and innovation
3. Explain the steps an entrepreneur can take to protect their ideas through patents
and copyright.
Taking a calculated risk
1. Understand the principle of taking a calculated risk
2. Understand that weighing up the upsides (rewards) and downsides (risks) of a new
business is an important part of the process of judging outcome viability of a start
Important enterprise skills
1.…read more

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Estimating revenues, costs and profits
1. Understand how businesses estimate revenue (selling price x quantity sold)
2. Understand the difference between fixed and variable costs
3. Be able to explain the difference between cost, price and profit
4. Explain the impact of losses on a business and its owners.
Forecasting cash flows
1. Understand the importance of cash flow to a business
2. Explain the difference between cash flow forecast and cash flow statement
3.…read more

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Understand that different businesses will place different emphasis on the elements
of the mix according to customer needs
The importance of limited liability
1. Explain the difference between limited and unlimited liability
2. Be able to point out the key differences between private limited companies and sole
Start-up legal and tax issues
1. Why do businesses need to establish a unique trading name
2. Explain why keeping records is important to a business
3.…read more

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The economic context
Demand and supply
1. Understand that prices in commodity markets are determined by the balance
between supply and demand
2. Explain the difference between the commodity markets and normal markets
3. What is the effect of price change and energy costs on a small business
The impact of interest rates
1. How does a change in interest rates affect a small business that has taken out loans
or overdrafts
2.…read more


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