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Business Studies - Unit 1
- Starting a Business
- Choosing the Right Legal Structure for the Business
- sole traders, partnerships,
private limited companies and
public limited companies
- not-for-profit businesses
- Candidates should be aware of the benefits
and drawbacks of legal structures and
understand plc’s as a means of comparison.
- sole traders, partnerships,
private limited companies and
public limited companies
- Enterprise
- Candidates should consider the role,
importance and characteristics of an
entrepreneur in establishing a new
business. Entrepreneurship can take a
number of forms including spotting a gap
in the market or developing a new or
innovative product or process.
- government support for enterprise and entrepreneurs
- the notion of opportunity cost
- the importance of risk and rewards such as profit
- motives for becoming an entrepreneur
- enterprise and entrepreneurs
- Candidates should consider the role,
importance and characteristics of an
entrepreneur in establishing a new
business. Entrepreneurship can take a
number of forms including spotting a gap
in the market or developing a new or
innovative product or process.
- Conducting Start-Up Market Research
- Candidates should be aware of the relative
value of different approaches to market
research. Methods of sampling should
include: random, quota and stratified.
Candidates should be aware that the
available finance, the nature of the product,
the risk involved and the target market will
influence the choice of sampling method and
size of sample.
- methods of primary and secondary market research
- qualitative and quantitative research
- size and types of samples
- factors influencing the choice of sampling methods
- Candidates should be aware of the relative
value of different approaches to market
research. Methods of sampling should
include: random, quota and stratified.
Candidates should be aware that the
available finance, the nature of the product,
the risk involved and the target market will
influence the choice of sampling method and
size of sample.
- Locating the Business
- factors influencing
start-up location
decisions
- The factors should include: technology,
costs, infrastructure, the market and
qualitative factors. Candidates should
understand that their relative importance
may vary according to the type of
business.
- factors influencing
start-up location
decisions
- Generating & Protecting Business Ideas
- sources of business ideas
- the identification of a product or market niche
- franchises
- copyright, patents
and trademarks.
- The sources of ideas may include
brain-storming, own personal experience and
business experience. The generation of
business ideas must be in relation to a small
business with limited resources. Candidates
should be familiar with the formation and
operation of franchises and understand the
benefits and pitfalls to franchisors or
franchisees of operating a franchise as
opposed to starting a new business.
- sources of business ideas
- Transforming Resources into Goods & Services
- This topic should be
considered within the context
of the tertiary, secondary and
primary industries.
- adding value
- inputs, outputs and the nature of the transformation
of resources into finished products
- This topic should be
considered within the context
of the tertiary, secondary and
primary industries.
- Developing Business Plans
- Candidates should be aware of the
benefits and problems of plans/planning for
small businesses. The planning process
involves decisions based on the resources
to be used and factors providing
competitive advantage. The sources of
information should include: small business
advisors, accountants, bank managers and
government agencies.
- the purpose and contents of business plans
- sources of information and guidance
- Candidates should be aware of the
benefits and problems of plans/planning for
small businesses. The planning process
involves decisions based on the resources
to be used and factors providing
competitive advantage. The sources of
information should include: small business
advisors, accountants, bank managers and
government agencies.
- Employing People
- using consultants and advisors
- types of employees used in small businesses
- The types of employees should
include: temporary, permanent,
full-time and part-time. Candidates
should be aware of the reasons,
drawbacks and difficulties of
employing people and/or using
consultants and advisors.
- using consultants and advisors
- Understanding Markets
- market size, growth and share
- types of market segmentation
- the importance of demand
- the nature and types of markets
- Candidates should be aware that markets take
different forms, eg local, national, physical and
electronic. Candidates should know that demand
is affected by a range of factors including the
price of the product, competitor actions,
consumer incomes, success of businesses’
marketing and seasonal factors. Candidates
should be aware of the benefits and drawbacks
of types of segmentation. Candidates should be
able to calculate market size, growth and share.
- market size, growth and share
- Raising Finance
- Sources of finance should
include: ordinary share capital,
loan capital (bank loans,
overdrafts only), venture capital
and personal sources.
Candidates should be aware of
the advantages and
disadvantages of these in
specific contexts.
- sources of finance available to
start businesses.
- Sources of finance should
include: ordinary share capital,
loan capital (bank loans,
overdrafts only), venture capital
and personal sources.
Candidates should be aware of
the advantages and
disadvantages of these in
specific contexts.
- Choosing the Right Legal Structure for the Business
- Financial Planning
- Assessing Business Start-Ups
- Setting Budgets
- Using Break-Even Analysis to Make Decisions
- Calculating Costs, Revenues & Profits
- Candidates should
understand the
relationships between cost,
price, revenue and profits.
- price, total revenue and profit
- fixed, variable and total costs
- Candidates should
understand the
relationships between cost,
price, revenue and profits.
- Using Cash Flow Forcasting
- Assessing Business Start-Ups
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