Bs1 Revision Booklet
BS1 REVISION BOOKLET
SECTION 1 WHAT IS BUSINESS
What Is a Business: A business or establishment that aims to fulfil a purpose;
• Make profits –producing high quality services and goods
• Increase brand image/reputation
• Try to survive against competitors
• Increase market share
• Good customer service
• Be environmentally sustainable
NEEDS - e.g to survive- shelter, water, food – PROBLEM: needs are limited
WANTS – e.g luxuries - such as cars, houses, phones - POSITIVE: unlimited
Businesses provide GOODS (tangible product) and SERVICES (intangible).
They provide them LOCALLY (e.g corner shop) or NATIONALLY (e.g Britsh Gas) or INTERNTIONALLY (e.g McDonalds)
Scarcity- When you have low amount of stock to meet demands.
Opportunity Cost - the benefits of a decision that you give up when chosing another decision (the next best thing)
There are types of businesses:
PUBLIC SECTOR- Businesses owned and funded by govt (e.g post office)
Aim to not make profits, provide a service, benefit citizens
They provide:
MERIT GOODS – Goods/services which not enough people would benefit from if it was in the private sector (e.g museums, leisure center) REASONS: too expensive
PUBLIC GOODS- Goods that can be benefited by everyone. Things that can’t be in the private sector because it is impossible to stop people from using them even without paying (e.g lampposts, police)
PRIVATE SECTOR- Businesses owned and run by individuals/ group of individuals
Aims to make profits, surviving and increasing market share.(Sole Traders, Partnerships ETC)
Different Types of Businesses:
In Private Sector
LIMITED LIABILIY: If the business goes bankrupt the owners do not risk losing their possesions to fund outstanding liabilities.
• Private Limited Company( LTD)- Shareholders(familys/friends), Board of Directors, Memorandum of Association & Articles of Association, Mortage/Bankloans/shares, Limited Liability POSITIVES: -Limited liability –Accounts are
SECTION 1 WHAT IS BUSINESS
What Is a Business: A business or establishment that aims to fulfil a purpose;
• Make profits –producing high quality services and goods
• Increase brand image/reputation
• Try to survive against competitors
• Increase market share
• Good customer service
• Be environmentally sustainable
NEEDS - e.g to survive- shelter, water, food – PROBLEM: needs are limited
WANTS – e.g luxuries - such as cars, houses, phones - POSITIVE: unlimited
Businesses provide GOODS (tangible product) and SERVICES (intangible).
They provide them LOCALLY (e.g corner shop) or NATIONALLY (e.g Britsh Gas) or INTERNTIONALLY (e.g McDonalds)
Scarcity- When you have low amount of stock to meet demands.
Opportunity Cost - the benefits of a decision that you give up when chosing another decision (the next best thing)
There are types of businesses:
PUBLIC SECTOR- Businesses owned and funded by govt (e.g post office)
Aim to not make profits, provide a service, benefit citizens
They provide:
MERIT GOODS – Goods/services which not enough people would benefit from if it was in the private sector (e.g museums, leisure center) REASONS: too expensive
PUBLIC GOODS- Goods that can be benefited by everyone. Things that can’t be in the private sector because it is impossible to stop people from using them even without paying (e.g lampposts, police)
PRIVATE SECTOR- Businesses owned and run by individuals/ group of individuals
Aims to make profits, surviving and increasing market share.(Sole Traders, Partnerships ETC)
Different Types of Businesses:
In Private Sector
LIMITED LIABILIY: If the business goes bankrupt the owners do not risk losing their possesions to fund outstanding liabilities.
• Private Limited Company( LTD)- Shareholders(familys/friends), Board of Directors, Memorandum of Association & Articles of Association, Mortage/Bankloans/shares, Limited Liability POSITIVES: -Limited liability –Accounts are