Bs1 Revision Booklet

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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 private –Tight...
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