Cambridge IGCSE Business Studies Notes

Flashcards covering key terms and concepts from the Cambridge IGCSE Business Studies course.

Business Activity

The study of economics and management in relation to the production of goods and services.

Scarcity

A situation that exists when there are unlimited wants and limited resources to satisfy those wants.

Opportunity Cost

The next best alternative forgone by choosing a particular option.

Factors of Production

Resources required to produce goods or services, including land, labor, capital, and enterprise.

Specialization

The concentration of individuals or organizations on a specific task to improve efficiency.

Added Value

The difference between the cost of materials and the selling price of a product.

Primary Sector

The sector of the economy that involves the extraction of natural resources.

Secondary Sector

The sector of the economy that involves the manufacturing of goods.

Tertiary Sector

The sector of the economy that provides services.

Sole Trader

A business organization owned and controlled by one person who receives all profits and bears all risks.

Partnership

A legal agreement between two or more individuals to own and operate a business together.

Joint-stock Company

A business organization that sells shares to raise capital and has limited liability for shareholders.

Business Objectives

The aims and targets that a business works toward to achieve success.

Stakeholders

Individuals or groups that have an interest in or are affected by the operations of a business.

Motivation

The reasons or incentives behind individuals' decisions to work and give their best effort in a job.

Organizational Structure

The arrangement of different levels of management and the division of responsibilities within a business.

Marketing Mix

The combination of product, price, promotion, and place strategies used to market a product.

Market Research

The process of collecting, analyzing, and interpreting information about a market, including information about the target market.

Cash Flow Forecasting

An estimate of future cash inflows and outflows to predict the cash position of a business.

Income Statement

A financial document that records all revenues and costs incurred by a business over a financial period.

Balance Sheet

A financial statement showing a company’s assets, liabilities, and equity at a specific point in time.

Economies of Scale

The cost advantages that businesses experience as they increase their level of production.

Quality Control

The process of ensuring that the products meet certain thresholds of acceptability.

Lean Production

A systematic method for waste minimization within a manufacturing system without sacrificing productivity.

Globalization

The increasing interconnectedness and interdependence of markets and businesses across the world.

Protectionism

Government policies that restrict international trade to help domestic industries.