3.1 What is business?
Understanding the nature and purpose of business
Content |
Additional information |
---|---|
Why businesses exist |
Business objectives such as profit, growth, survival, cash flow, social and ethical objectives |
The relationship between mission and objectives |
|
Common business objectives |
|
Why businesses set objectives |
|
The measurement and importance of profit |
The measurement of profit should include:
|
Understanding different business forms
Content |
Additional information |
---|---|
Reasons for choosing different forms of business and for changing business form |
Different forms of business include:
Issues with different forms of business include:
|
The role of shareholders and why they invest |
|
Influences on share price and the significance of share price changes |
|
The effects of ownership on mission, objectives, decisions and performance |
Understanding that businesses operate within an external environment
Content |
Additional information |
---|---|
How the external environment can affect costs and demand |
Factors influencing costs and demand to include the effect of:
|