CSEC/IGCSE Business Studies Revision Notes Flashcards

Comprehensive vocabulary flashcards covering the CSEC/IGCSE Business Studies syllabus including basic economic concepts, sectors, enterprise, business structures, recruitment, and marketing.

Needs

Things required for survival, such as food, water, shelter, and clothing.

Wants

Things people would like to have but can live without, such as a gaming PC, designer shoes, or a new phone.

Scarcity

The problem that resources are limited but human wants are unlimited.

Opportunity Cost

The next best alternative given up when making a choice.

Land

A factor of production consisting of natural resources; its reward is rent.

Labour

A factor of production consisting of human effort or workers; its reward is wages.

Capital

A factor of production consisting of man-made resources like machines and tools; its reward is interest.

Enterprise

A factor of production that organises the business and takes risks; its reward is profit.

Primary Sector

The economic sector that extracts natural resources, such as fishing, farming, mining, and forestry.

Secondary Sector

The economic sector involved in manufacturing and construction, such as a car factory or bakery.

Tertiary Sector

The economic sector that provides services, such as banks, schools, and hospitals.

Entrepreneur

A person who starts and runs a business, characterized as a risk taker, innovative, creative, and determined.

Survival

A business objective to remain in business, common during a recession or the start-up stage.

Profit Maximisation

A business objective to earn the highest possible profit.

Market Share

The percentage of sales in the market held by a business, calculated using the formula: (\text{Business Sales} \bdiv \text{Total Market Sales}) \times 100

Social Responsibility

A business objective to act ethically, such as reducing pollution or donating to charities.

Stakeholder

Anyone affected by the business, including owners, employees, customers, suppliers, the government, and the community.

Sales Revenue

The total value of sales, calculated using the formula: $\text{Price} \times \text{Quantity Sold}$

Internal Growth

Growth from within the business by opening new branches, developing new products, or increasing production.

External Growth

Growth achieved by joining with another business through a merger or a takeover.

Merger

When two businesses combine to form a single entity.

Takeover

When one business buys another business.

Economies of Scale

The advantage of lower average costs that results from business growth.

Sole Trader

A business owned by one person with unlimited liability.

Unlimited Liability

A situation where the owner is personally responsible for all business debts and personal assets may be sold to pay them.

Partnership

A business owned by $2$ to $20$ partners with unlimited liability.

Private Limited Company (Ltd)

A business with a separate legal identity and limited liability where shares are sold privately.

Limited Liability

A situation where owners can only lose the money they invested in the business.

Job Analysis

The process of studying a job before hiring to produce a job description and person specification.

Job Description

A document that explains the duties, responsibilities, and working hours of a job.

Person Specification

A document that describes the skills, qualifications, and experience required for a job.

Internal Recruitment

Hiring a new employee from the existing workforce.

External Recruitment

Hiring a new employee from outside the business.

ACTSIA

An acronym for the selection process: Application, CV, Tests, Shortlist, Interview, Appointment.

Induction Training

Training given to new employees to introduce the workplace and explain rules.

On-the-Job Training

Practical training that occurs while the employee is working at the workplace.

Off-the-Job Training

Training that occurs away from the workplace, often involving professional trainers.

Wage

A financial reward paid to workers on an hourly basis.

Salary

A financial reward consisting of a fixed annual amount.

Commission

A financial reward based on the number of sales made.

Piece Rate

A financial reward where workers are paid per item produced.

Job Rotation

A non-financial reward where workers move between different jobs to reduce boredom.

Job Enrichment

A non-financial reward involving giving employees more responsibility.

Marketing

The process of identifying customer needs and satisfying them profitably.

Primary Research

The collection of first-hand information through questionnaires, interviews, focus groups, or observation.

Secondary Research

The collection of information that has already been gathered by others, such as government statistics or the internet.

Product Life Cycle

The stages a product passes through: Development, Introduction, Growth, Maturity, and Decline (D-I-G-M-D).

Cost Plus Pricing

Setting a price by adding a profit margin to the cost of production.

Competitive Pricing

Setting a price similar to those of rival businesses.

Penetration Pricing

Setting a low price at the launch of a product to gain customers quickly.

Price Skimming

Setting a high price at the launch of a product to earn high early profits.

Promotional Pricing

Offering temporary discounts to boost sales.