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Unit 1: Business Activity
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Needs vs Wants:
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Business Purpose: Satisfy needs and wants by providing goods/services.
Sectors:
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Needs: Essential (food, water, shelter)
Wants: Non-essential (phone, holidays)
Primary: Raw materials
Secondary: Manufacturing
Tertiary: Services
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Unit 2: Types of Business Organisation
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Sole Trader: One owner, keeps profits, unlimited liability.
Partnership: 2–20 owners, shared decision-making, unlimited liability.
Private Limited Company (Ltd): Limited liability, shares not public.
Public Limited Company (PLC): Can sell shares publicly.
Franchise: Buying rights to use a brand.
Joint Venture: 2+ businesses join for a project.
Public Sector: Government owned.
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Unit 3: Business Objectives
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Examples: Profit, growth, market share, survival, social responsibility.
Stakeholders: Owners, employees, customers, government, community.
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Unit 4: People in Business
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Organisational Structure: Levels of hierarchy, chain of command.
Motivation Theories: Maslow, Herzberg.
Recruitment: Internal vs external, steps: job description, advert, CVs, interviews.
Training: On-the-job vs off-the-job.
Dismissal vs Redundancy
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Unit 5: Marketing
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Market Research: Primary (surveys), secondary (reports).
Marketing Mix (4Ps):
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Product, Price (penetration, skimming), Place (channels), Promotion (ads).
Market Segmentation: Age, income, location.
Product Life Cycle: Development → Introduction → Growth → Maturity → Decline.
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Unit 6: Finance
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Sources of Finance:
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Internal: Retained profit, sale of assets
External: Loan, overdraft, share issue, venture capital
Cash Flow Forecast: Cash inflows/outflows, net cash flow.
Income Statement: Revenue – Costs = Profit
Balance Sheet: Assets, liabilities, equity.
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Unit 7: Operations Management
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Production Methods: Job, batch, flow.
Lean Production: Reducing waste (Kaizen, JIT, cell production).
Quality Control vs Quality Assurance
Break-even:
\text{Break-even output} = \frac{\text{Fixed Costs}}{\text{Selling Price} - \text{Variable Cost per unit}}
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Unit 8: External Influences
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Economic Factors: Inflation, interest rates, exchange rates, unemployment.
Environmental Issues: Sustainability, pollution, social responsibility.
Legal Factors: Consumer protection, employment law.
Globalisation: Opportunities (new markets), threats (more competition).
Government Policies: Taxes, subsidies, regulations.
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