Students are introduced to the dynamic nature of business in relation to how and why business ideas come about. They also explore the impact of risk and reward on business activity and the role of entrepreneurship.
Examination questions based on the topic covered. Each question takes approximately 20 minutes.
The ability to turn an idea into a successful business. In economic terms – enterprise includes the combination of three of the factors of production.
An individual who has and then develops a business idea and is prepared to take risks to exploit a business opportunity. The entrepreneur may invent a brand new product or service or recognise and exploit a gap in the market.
The creation of a brand new product or service that has not been available before.
Bringing a new product to the market place or adapting an existing product by changing and improving it in some way.
The specific feature or features that make a product different from the competition.
Consumer – the person who uses a good or service. Customer – the person who purchases a good or service from a business.
The way in which a business increases the worth of its inputs and sells them for a higher amount than they were purchased for. Main sources of added value are convenience and speed, branding, quality, design and the USP.
The advantage that a business has over the rival firms in its market.
An event that may occur and if it does will have a harmful or negative effect. Calculated risk is a way of assessing and managing risk which considers the probability of a risk occurring and the financial implications if it does occur.
Students consider what it means to become an entrepreneur and how to develop self sufficiency.
Students think about business and what it means to have employees. They consider how to ensure a cohesive community within their own business community.
Students will explore how new and small businesses identify opportunities through understanding customer needs and conducting
market research. They will also focus on understanding the competition.
Students will sit an EOU Assessment based on exam questions. The areas assessed will be: - Customer needs - Market Research - Market Segmentation - The competitive environment
Original data, up-to-date, directly relevant to products.
Already published data, wide range available, quick to access.
Collected and analysing information first hand via interviews and surveys.
Using existing material such as published accounts or government reports.
How customers are divided, according to their different characteristics.
Set of ingredients that the business will use to achieve its aims, based on the four Ps.
The natural life of a product or service.
Letting potential customers aware of a product, by displaying and presenting it in an attractive way.
How the product is offered to the customers, e.g. 10% extra for free.
Expanding the product life cycle and avoiding saturating the market. Usually involves altering the existing range or product.
Helps the student understand how market research is carried out and the merits of carrying it out
Helps understand how people engagement is achieved.
This topic focuses on making a business
idea happen through identifying aims and objectives and concentrating on the financial
aspects - remote teaching
Students will sit an EOU Assessment based on exam questions. The areas assessed will be: -Business aims and objectives -Business revenues, costs and profits -Cash and cash-flow -Sources of Business Finance - remote assessment
Advantage - Money is only borrowed when it is needed. Disadvantage - Interest rates can be high.
Advantage - Free of interest charges. Disadvantage - Suppliers may stop supplying goods to a business if it owes too much money.
Advantage - Company does not have to find large amount of money to pay upfront. Disadvantage - Piece of equipment may already be out of date by the time the business owns it.
Advantage - Knows what the repayments will be each month. Disadvantage - May not be able to afford repayments.
Advantage - Does not require borrowing money. No interest to pay. Disadvantage - No money left to fall back on in emergencies. May not be sufficient.
Advantage - Can raise large amounts of money. Disadvantage - Each investor has a say in the control of the company.
Helps individuals understand remotely how revenue is generated and how businesses manage their money. This are important skills for individuals considering setting up a business
Students understand management of funds and budgeting and how to support their staff members and their market.
Students will explore a range of factors that
impact on the success of the business, including location, the marketing mix and the
business plan remotely.
Students will sit an EOU Assessment remotely based on exam questions. The areas assessed will be: - The options for start-up and small businesses -Business Location -The marketing mix -Business Plans
It is an industry which is located near the market because the final product is bulky or fragile, e.g. Biscuits and garden furniture.
An industry which is located near the natural resources, because the raw material is bulky, e.g. Stainless Steel in Sheffield.
An important element of the marketing mix showing how a business gets its products to the consumer.
A region of the UK which the government and European union (E.U) have chosen to receive financial assistance in the form of regional grants and other aid paid to industries locating or expanding in the area.
One of the four elements of the marketing mix i.e. the means by which the product is delivered to the consumer at the right place and at the right price.
Industries where costs of transport of raw materials and finished goods are relatively low, so that they can be situated in a wide variety of location.
Location available for industries building, which is currently agricultural, land.
The built in environment-like roads, factories, schools and hospitals.
A chain of shops owned by a single business, e.g. Marks and Spencer.
The last stage in the channel of distribution, which involves the final selling of the goods, and services that have been produced to consumers.
The middle person in a channel of distribution between producers and consumers. The wholesaler plays the important role of breaking the bulk of what is produced by the manufacturer, and delivering the goods in smaller quantities to retailers.
The individual who owns and controls a business, who has unlimited liability.
When 2-to-20 people carry on business together with a view to making a profit.
A company that can buy and sell their shares to the public, usually in the stock market. This type of company has limited liability. The owners are called shareholders.
The people who buy shares in a business and therefore owns a part of the business.
A limited company whose shares cannot be sold to the public. Shares in the company are usually owned by family and friends.
A business that is licensed to use the name, logo and expertise of an existing company in order to trade.
The company who licenses their name, logo and expertise to another company.
The person who applies for a license in order to operate the business.
The amount of money that can be lost if the business gets into debt is only what has been invested in the business. E.g. If you invest £30000 in a company, you can only lose those £30000.
The person who has unlimited liability can lose everything if the company gets into debt. This includes their savings, house, etc.
All organisations that are controlled by either national or local government.
All companies that are run and owned by individuals.
Is made up of the industries that produce raw materials. These include farming, mining and fishing.
Is made up of the industries that manufactures and processes goods. These include the construction industry and the providers of public utilities such as gas and electricity.
Is the part of the economy that provides services to both other industries and the general public. These include banking, insurance and transport.
Part of the economy that is made up of voluntary organisations. These are non-profit organisations.
This is a written document that shows the relationship between partners in a partnership. It includes details such as what are the areas of responsibility, amount invested and how any profits or debts should be shared.
Legal document that must be sent by limited companies to the Register of Companies highlighting the name of the business, the address, the object of the company, the liability of their members the amount of capital and the signature of at least two member
Document setting out the internal rules for running a limited business.
Meeting held by limited companies once a year to discuss the state of the business. Any shareholder is allowed to attend and voice their concerns and opinions.
Students consider the importance of locating businesses in the right area remotely and how to market a product.
Students consider the impact of location on the local community including employment and ethics - remotely.
Students are introduced to a range of factors, many of which are outside of the immediate control of the business, such as stakeholders, technology, legislation and the economy. Students will explore how businesses respond to these influences.
Students will seat a mock on investigating small business, it will be 1 hour and 30 minutes long and it will be broken down into 3 sections totalling 90 marks
Business activity controlled by local and central government. E.g. health, education, police.
Business owned by private individuals. Includes sole traders, partnerships and limited companies.
The meeting place between customers and suppliers.
A world wide market.
Producers and consumers are free to produce and consume as they wish. Government role is very small.
An economic system where the government decides what will be produced. Usually the government owns the businesses.
An economic system where there is both a private and a public sector.
Goods that cannot be divided up and provided only for people willing to pay for them. E.g. street lighting.
Goods that benefit both the individual and society. It is desirable that everyone should consume these. E.g. education.
One firm dominates the market and there is no competition.
Control of inflation, reduce unemployment, high economic growth, avoid balance of payments problems.
The regular pattern of upturns and downturns in demand and output within the economy.
The increase in the total amount of goods and services produced by all firms in the economy. Expressed as a percentage.
Falling levels of demand, low business confidence, high unemployment.
Rising levels of demand, high business confidence, low unemployment.
Period after a recession where demand grows and there is increasing business confidence.
Demand starts to fall and business confidence starts to weaken.
The number of people registered as out of work.
The general rise in the prices of goods.
The cost of borrowing money or the reward for saving money.
Interest rate is agreed at the start of the loan period and does not vary with the market rate of interest.
Interest rate can change during the loan period according to the market rate of interest.
Taxation is a charge imposed by the government on people and businesses to pay for its spending.
Income tax, corporation tax, VAT, council tax.
The tax that companies pay on their profits.
Tax paid as a proportion of an individual’s gross pay after certain allowances have been deducted.
Percentage tax added on to the price of a good or service. Currently 17.5%.
The government’s policy about taxes and government spending.
Policy on the interest rate which may be raised or lowered. Operated by the Bank of England.
Value of one nation’s currency in terms of another.
The goods and services a country buys from other countries.
The goods and services a country sells to other countries.
A record of the spending on imports and income from exports.
Taxes placed on imports which will increase the price of the imported goods. Also known as tariffs.
A limit placed on the amount of a product that can be imported.
Paid by a government to lower cost of production or to keep down prices of essential goods. Often farmers receive subsidies.
Trade between two countries is not restricted in any way by tariffs (duties), quotas or any other barriers to trade.
EU was formed with the objective of removing all trade barriers between member states and forming a political and economic union.
Single European currency introduced on 1 January 1999.
Students consider the implication of laws and technology in business lives and how this might impact on them personally.
Students consider the impact on the local community of changes in laws.
Students are introduced to methods of growth and how and why business aims and objectives change as businesses evolve. The impact of globalisation and the ethical and environmental questions facing businesses are explored.
Students will sit an EOU Assessment based on exam questions. The areas assessed will be: -Stakeholders -Technology and business -Legislation and business - The economy and business -External influences as well as ethics and the environment
Where a brewery acquires a hop farm to ensure continuity of supplies.
Might be where the brewery takes over a chain of pubs to give it a secure outlet to sell its beer.
The creation of a brand new product or service that has not been available before.
This is where two companies at the same stage in production join together e.g. Dixon’s and Curry’s.
Lateral integration occurs when firms with similar, but not competing products merge together. This enables them to offer a wider range of related products e.g. Cadbury-Schweppes (Food and drink).
Businesses may grow internally i.e. without involving another business. They can do this through aggressive marketing, increased sales, a new product range, or through technological change.
Vertical integration occurs when two companies at different stages in the production process join together. These mergers may be backwards or forwards.
Mergers - A merger is when two or more companies voluntarily join together to form a single organisation. This is also known as integration.
This is different from a merger in that the company being taken over has not agreed to the two companies joining together.
Many companies have grown by diversifying. This means moving into other areas of production or sales. A conglomerate is a business that operates in many different markets.
A set of social principles that govern or influence how we behave.
Business behaviour which places moral values above maximising profits.
Attempts by individual businesses to behave in an ethical manner.
The breakdown of the people in a country into groups based on differences in age or gender etc.
The number of people aged between 16 and 65 who are able to work.
Ensuring that waste materials are kept within legal limits, at the lowest possible cost to the business.
Using resources again.
Measure of whether a production process can be continued into the long term. A business policy based on sustainability focuses on recycling, waste management and replanting.
The costs to the environment and community that arise when business activities take place.
The benefits that business activity brings to a local community and the environment.
Contamination of the environment e.g. air, water, noise.
A site for a business which has not previously been used for building.
A site for a business that has previously been used for building purposes.
The changes to an old industrial area to attract new businesses and housing.
Students will understand the importance of ethics on everyday life and develop analytical skills that will aid them in making ethical decisions both within the business context and everyday life.
Students will think of the impact of activities in people's everyday life.