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.

TopicCandidates 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 businessesBusiness 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 sizeEnterprise 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 objectivesThe role of stakeholder groups involved in business activity;
Differences in the objectives of private sector and public sector enterprises
Exam styled Questions with detailed answers