Candidates are required to apply their understanding to a variety of simple business situations and should be able to make simple decisions based upon the analysis and evaluation of information provided.
Topic | Candidates should be able to: |
Business activity | •Concepts of needs, wants, scarcity and opportunity cost •Importance of specialisation •Purpose of business activity •The concept of adding value and how added value can be increased |
Classification of businesses | Business activity in terms of primary, secondary and tertiary sectors Classify business enterprises between private sector and public sector in a mixed economy |
Enterprise, business growth and size | Enterprise and entrepreneurship The methods and problems of measuring business size Why some businesses grow and others remain small Why some (new or established) businesses fail |
Types of business organisation | •Sole traders, partnerships, private and public limited companies, franchises and joint ventures •Differences between unincorporated businesses and limited companies •Concepts of risk, ownership and limited liability •Recommend and justify a suitable form of business organisation to owners/management in a given situation •Business organisations in the public sector |
Business objectives and stakeholder objectives | The role of stakeholder groups involved in business activity; Differences in the objectives of private sector and public sector enterprises |