Some Business Studies Notes

This is by no means all of the business studies course, but there are some notes in here which I printed out which helped me a lot with my confidence for business studies.... so I hope it helps someone else :)

Topics covered: Factors of production, opportunity cost, public/private sector, primary/secondary/tertiary sectors, measuring businesses, business growth, business objectives, break even, Trading, profit and loss account, balance sheet, organisation structures, communication, market segmentation, product life cycle, motivation, industrial action, buffer stock.

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  • Created on: 09-06-09 16:06
Preview of Some Business Studies Notes

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Factors of Production:
Land: All natural resources provided by nature such as fields,
forests, oil, gas, metals and other mineral resources
Labour: The people who are used produce goods and services.
Capital: Finance, machinery and equipments needed to produce
goods and services.
Enterprise: The skill and risk taking ability of the person who
brings together all the other factors of production together to
produce goods and services. Usually the owner or founder of a
business.
Opportunity Cost
The next best alternative foregone while making a choice is known as
Opportunity Cost. Opportunity cost is caused by a scarcity of resources.
Business which are owned by private individuals and groups are known as
Private sector businesses
And businesses which are owned and managed by Government are
known as Public Sector businesses.
Countries or economies which only have private sector businesses are
known as free market economies. Economies which only have public
sector businesses are known as planned economies. Economies which
have both public and private sector businesses are known as Mixed
economie
Sectors of Production:

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Primary ­ extraction of raw materials
Secondary ­ manufacturing of products
Tertiary ­ providing a service
Measuring size of businesses:
The number of employees:
The amount of capital invested:
The sales turnover:
Market capitalisation:
Market share
Business Growth
Many businesses have an objective and that is to grow in size. Keeping
Growth as an objective has its own advantages for the business.…read more

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Profit
Growth
Survival
Providing a service
Increase added value?
Breakeven
Total cost= fixed cost + variable cost
Revenue = Quantity sold x Price…read more

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Contribution is the excess of price over variable costs. Any money
received over the variable costs makes a contribution towards the fixed
costs.…read more

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Business documents:
Trading Account
The trading account reveals the gross profit of the business.
Profit and loss account
This account shows the net profit of the business.
Net profit = (Gross Profit ­ Expenses and Overheads) + Income from
non trading activities
Appropriation account is that part of the profit and loss account
which shows how the profit after tax is distributed. This profit can be
distributed as dividends or can be kept in the company as retained
profits.…read more

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Balance Sheet
Balance sheet shows the value of a business's assets and liabilities on a
particular date.
It records what the firm owns (assets), what it owes (liabilities), what it
is owed and how it is financed (owner's equity).…read more

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Types of Organisation Structure
Line Organisation
Functional Organisation
Communication:…read more

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Market segmentation:
Age
Income
Disposable income
Lifestyle.
Region
Gender
Etc..…read more

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Motivation:…read more

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Types of Industrial Actions
Strike: when employees refuse to work
Picketing: When employees stand outside the workplace and
prevent the smooth functioning of the firm. E.g. they may stop the
movement of Lorries in and out of factory.
Work to Rule: It is when workers purposely follow all the rules in
order to delay the progress of work.
Go slow: It is when the employees work at a very slow pace.
Noncooperation: It involves workers refusing to follow a new
procedure or rule.…read more

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