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.

Production of goods and servicesThe meaning of production;
The main methods of production;
How technology has changed production methods.
Costs, scale of production and break-even analysisIdentify and classify costs;
Economics and diseconomies of scale;
Break-even analysis.
Achieving quality production•What quality means and why it is important for all businesses
•The concept of quality control and how businesses implement quality control
•The concept of quality assurance and how this can be implemented
Location decisions•Factors relevant to the location decision of manufacturing businesses and service businesses;
•Factors that a business could consider when deciding which country to locate operations in;
•The role of legal controls on location decisions;
•Recommend and justify an appropriate location for a business in given circumstances.