IGCSE & A LEVELS GUIDE

Governments oftentimes create regulations to control employment issues. These are called legal controls. Such controls are important to avoid businesses from taking advantage of workers in an unbalanced relationship. Discussion (3m) : Do you know of any way governments creates rules, regulations and laws to control the employer-employee relationship? Regulations on Unfair Dismissal: Workers can take legal action (sue) businesses which are believed to have dismissed a worker

Chapter 16 - Costs, Scale of Production, and Break-Even Analysis Lesson Objective: To understand how to construct and interpret the break-even analysis The break-even point is the point in which the cost and revenue are equal and there is neither profit nor loss being made by the business: In other words, the break even point happens when all revenues earned by the firm with sales is equals to the firm's costs of production. When you are at break even and want to make profit

Chapter 20 - Cash Flow Forecasting and Working Capital Class Objective: To understand the difference between cash and profit Cash is important to business. Fact! Businesses need cash to pay wages, suppliers, utilities, etc... Cash Flow Management, therefore, is a key element of business management. It is the process of making sure that there is enough cash within the company for paying its debts. Is cash the same as profit, though? Profit = Revenues - Costs Cash refers to

Chapter 19 - Business Finance: Needs and Sources Class Objective: To understand the factors impacting sources of financing available To finalize financing we have to discuss government grants and microfinancing: Government Grants : Incentives towards boosting business activity and growth; It comes in various forms: tax benefits, renting benefits, etc.; It does not need to be repaid. Microfinancing is a common form of finance in developing economies : Targeted to entrepreneu

Chapter 19 - Business Finance: Needs and Sources Learning Objective: The Most Common External Sources of Finance (19.2) We shall now discuss external sources of finance: Short-term external finance include overdraft, trade credit, debt factoring; Long-term external finance include bank loan, hire purchase, leasing, mortgage, debenture, share issue . Overdraft: A 'type of short-term loan'; It allows the customer/business to keep on paying its bills even when the account reach

Chapter 19.1 - Business Finance: Needs and Sources Learning Objective: Sources of Finance (19.1) Businesses need financing... It's obvious. Every business needs financing. Businesses need startup capital: This is the capital needed by an entrepreneur when starting a business. Businesses need finance to purchase so called non-current (a.k.a. fixed) assets: These are long-term assets (>12 months) such as buildings, machines, technology, and vehicles. Such investments are call

Chapter 18 - Location Decisions Lesson Objective: To understand the difficulties in internationalizing operations There are so many factors influencing location and relocation decisions , most of which are related to costs, sales , and logistics: Cost of site; Size of site (opportunity for expansion); Labor costs and availability; Transportation costs (delivery of goods and access to supplies); Market potential ; Government incentives ; Legal restrictions; Quality of local in

Chapter 18 - Location Decisions Lesson Objective: To understand how businesses pick their location Location is one of the most important decisions for a business. Full stop! The right or wrong location decision can either positively or negatively impact: Costs; Sales; Delivery of products and services. Location is a long-term decision! What do YOU think are the most important factors to consider when making a location-decision? There are many things to take into considerat

Chapter 17 - Achieving Quality Production Lesson Objective: To understand the importance of quality for businesses In your opinion, what is a quality product? The most reliable? The best performing? The longer lasting? Quality is a relative concept which depends on variables such as: Price; Customers' expectations; Customers' satisfaction. Quality , therefore, is about being defect-free and meeting customers' expectations . The concept of Quality Standard comes after under

Chapter 17 - Achieving Quality Production Lesson Objective: To understand how quality control and assurance work Case study (p. 231) Test yourself (p. 231) There are mainly two approaches for achieving quality: Control is based on inspection/checking of the completed unit Assurance is the process of self-checking quality by the workers in charge of each process preventing and reducing faulty products. Control , therefore, can be problematic: Workers and inspectors live in