Cambridge IGCSE Business Studies: Karen Borrington, Peter Stimpson - Notes Part 1

  • Working with Cambridge International Education

Working with Cambridge for over 25 years.

Cambridge IGCSE and O Level Business Studies - Fifth Edition

Authored by Karen Borrington and Peter Stimpson.

Copyright Information

All exam-style questions and answers in this title were written by the author(s). In examinations, the way marks are awarded may be different.

All trademarks and brands mentioned in this book are protected by their respective trademarks and are acknowledged.

Every effort has been made to trace all copyright holders, but if any have been inadvertently overlooked, the publishers will be pleased to make the necessary arrangements at the first opportunity.

Although every effort has been made to ensure that website addresses are correct at the time of going to press, Hodder Education cannot be held responsible for the content of any website mentioned in this book. It is sometimes possible to find a relocated web page by typing in the address of the home page for a website in the URL window of your browser.

Hachette UK’s policy is to use papers that are natural, renewable, and recyclable products made from wood grown in sustainable forests. The logging and manufacturing processes are expected to conform to the environmental regulations of the country of origin.

Orders: please contact Bookpoint Ltd, 130 Park Drive, Milton Park, Abingdon, Oxon OX14 4SE. Telephone: (44) 01235 827720. Fax: (44) 01235 400401. Email education@bookpoint.co.uk. Lines are open from 9 a.m. to 5 p.m., Monday to Saturday, with a 24-hour message answering service. You can also order through our website: www.hoddereducation.com

IGCSE® is a registered trademark
© Karen Borrington and Peter Stimpson 2018

First published in 1999 by Hodder Education
An Hachette UK Company
Carmelite House, 50 Victoria Embankment, London EC4Y 0DZ

Second edition published 2002
Third edition published 2006
Fourth edition published 2013
This fifth edition published 2018

All rights reserved. Apart from any use permitted under UK copyright law, no part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying and recording, or held within any information storage and retrieval system, without permission in writing from the publisher or under licence from the Copyright Licensing Agency Limited. Further details of such licences (for reprographic reproduction) may be obtained from the Copyright Licensing Agency Limited, www.cla.co.uk.

Cover photo © Shutterstock/Lesia_G
Third edition typeset in ITC Officina Sans 11.5/13 pts. by Aptara Inc.
Illustrations by Oxford Designers and Illustrators Ltd and Aptara Inc.
Printed and bound in Slovenia

A catalogue record for this title is available from the British Library
ISBN 978 1 5104 2123 3

Table of Contents

SECTION 1 Understanding business activity

1 Business activity 2
2 Classification of businesses 11
3 Enterprise, business growth, and size 19
4 Types of business organization 35
5 Business objectives and stakeholder objectives 51
Case study 61

SECTION 2 People in business

6 Motivating employees 63
7 Organization and management 76
8 Recruitment, selection, and training of employees 92
9 Internal and external communication 114
Case study 129

SECTION 3 Marketing

10 Marketing, competition, and the customer 132
11 Market research 143
12 The marketing mix: product 158
13 The marketing mix: price 170
14 The marketing mix: place 178
15 The marketing mix: promotion 185
16 Technology and the marketing mix 197
17 Marketing strategy 203
Case study 212

SECTION 4 Operations management

18 Production of goods and services 214
19 Costs, scale of production, and break-even analysis 228
20 Achieving quality production 241
21 Location decisions 248
Case study 262

SECTION 5 Financial information and financial decisions

22 Business finance: needs and sources 265
23 Cash flow forecasting and working capital 281
24 Income statements 293
25 Statement of financial position 303
26 Analysis of accounts 311
Case study 323

SECTION 6 External influences on business issues

27 Economic issues 326
28 Environmental and ethical issues 340
29 Business and the international economy 351
Case study 362

Index 364
Acknowledgements 368

Introduction

This book is written for all students of Cambridge IGCSE and O Level Business Studies, and it follows the syllabus from Cambridge Assessment International Education, providing detail and guidance for course support and exam preparations. It's also valuable for learning key business concepts.

This book is aimed for:

  • Students needing a comprehensive and clear textbook for school or college.

  • Students requiring a study guide with key definitions, techniques, and exam advice for exam revision.

  • Students learning independently through distance or open learning, needing a complete program with questions, activities, and suggested answers.

Building on the previous editions, this fifth edition updates existing chapters, removes outdated material, and adds new subject matter with additional chapters and features.

How to Use This Book

This Cambridge International endorsed textbook offers the following features:

  • Learning objectives: Each chapter starts with an outline of the subject material and ends with a checklist to confirm what has been learned.

  • Organization: The content is in the same order as the syllabus, with chapter titles and section headings matching the Cambridge IGCSE and O Level Business Studies syllabuses.

  • Approach: The material is written in an informative yet lively way, ensuring understanding of each topic.

Example Exam-Style Questions

Shows short-answer and data-response questions.

Revision checklist: lists learned concepts, scarcity, opportunity cost, specialisation and added value.

Yeo's International Example

Shows international business in focus. Discussion point raises awareness of business across countries.