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