IGCSE & A LEVELS GUIDE

Lesson Objective: The Meaning of 'An Economy' (2.1) What do you understand by the word 'economy'? What is an 'economy'? An economy is the measure of all the resources and wealth in a country - everything produced and purchased within a country. An economy is the place where business activity happen. An economy is made of businesses in different sectors (the sectors of an economy): The primary sector of an economy is based on activities that extract raw materials from nature (

You should now be clear that Strategic Analysis is the process of conducting research into the business environment within which an organization operates, and into the organization itself, to help form future strategies. One step ahead, after acquiring a clear view of the business and its environment, is Strategic Choice: Identifying strategic options and choosing between them; Good strategic options have the following features: - They create a competitive advantage to the bu

Chapter 22 - 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. Think about it... Can a profitable business run out of cash? Can an unprofitable

Chapter 1.2 - Business Activity Learning Objective: Business Activity: Specialization in Providing Goods & Services (1.2) Do you know one thing every business has in common? They all try to add as much value as possible to their products and services! Adding value is increasing the difference between the cost of producing a good/service and the price of selling. Businesses can add value in different ways: 1. The most common way of adding value is through production: turning r

Chapter 2 - Economic Sectors Learning Objective: Structuring an Economy The economy of a country is made of different sectors of its economy: The balance of these sectors in the economies of different countries varies substantially. It depends on the level of industrialization in each country: We now completely understand the different sectors of an economy: primary, secondary, and tertiary. Companies within these different sectors can either be private or public: Most econo

Chapter 21 - Business Finance: Needs and Sources Class Objective: To understand the factors impacting sources of financing available What financing method is the best? Which one should a business pick? There are many factors influencing the choice of financing to a business: 1. The size and legal form of the business: Only PLC can issue shares; Small businesses have a hard time getting loans (and high interest). 2. The amount required: Bank loans have a limit depending on the