Download e-book for iPad: GCSE Business Studies by Carolyn Lawder

By Carolyn Lawder

ISBN-10: 0007124287

ISBN-13: 9780007124282

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Extra resources for GCSE Business Studies

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2) A Trade credit B Debentures C Overdraft D Leasing of premises E Mortgage of land F Hire purchase of machinery 7 Name three sources of grants to businesses. (3) 8 What are the main disadvantages for a limited company raising funds by selling additional shares? (2) 9 Suggest three ways a business could finance an expansion. (3) The answers are on page 109. 32 B USINESS PLANS (1) What is a business plan? ● A business plan is a document produced before a business is created, giving details of all aspects of the proposed business.

1) 9 What is performance-related pay? (2) 10 What would you expect the salary package to include for this job? (2) Personnel Director required for Successful Engineering Company North East England Good salary package The answers are on page 108. 27 S OURCES ● OF FINANCE (1) A business can need money for various reasons throughout its life. There are major stages when a business may need money: To create a business To cover poor cash flow £ To expand the product range To expand the number of premises ● To replace old equipment There can be only two types of finance available to a business: ■ internal, from within the business ■ external, from sources outside the business.

It also needs to know the best price to charge, how to sell the goods and where to advertise them. ● A business that aims at a small market segment, such as a sports shop that specialises in water polo, is said to exploit a niche market. Age Income Socio-economic group Gender Hobbies Religion Geographical area Race Market segments ● A business may analyse its own strengths, weaknesses, opportunities and threats. This is called a SWOT analysis to find the position in the market of its products. Methods of researching the market ● There are two methods of gaining information about potential consumers: ■ desk research ■ field research.

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GCSE Business Studies by Carolyn Lawder


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