CIE A Level Business

• Types of Business Organisation

  • Sole Trader
  • Partnership
  • Joint Venture
  • Limited Company
  • Franchise
  • Social Enterprises
• Secondary Sector 


  Includes firms that produce and manufacture goods using natural resources
• Primary Sector (Extraction Sector)


  Includes business that extract natural resources so they can be used and processed for the manufacture of goods and services
• Tertiary Sector

  Includes firms and businesses that provide services to consumers and other businesses
• Quaternary Sector

  Includes businesses that provide information services such as IT
• Curriculum Vitae


  A document outlining the skills, qualifications and work experience of an individual
• Job Description


  A detailed list/document of the key points about the job to be filled, stating all its key tasks and responsibilities
• Absenteeism 


  A measure of the rate of the workforce absence as a proportion of the employee total
• Added Value


  The difference between the selling price of a product and the cost of bought in materials used in its production.
• Adding Value


  Increasing the difference between the selling price of a product and the cost of bought in materials used in its production.
• Organic growth (Internal Growth)


  When a business expands using their own internal resources like opening new branches
• External growth


  When a business expands by integrating with another business either through takeover or merger
• Horizontal Integration


  When two business in the same industry and at the same stage of product merge
• Conglomerate Integration 


  Merging with a business in a different industry
• Vertical Integration


  When two businesses in the same industry but at different stages of production merge
• Vertical Backward Integration


  Merging with a supplier business
• Forward Vertical Integration


  Merging with a customer business
• Efficiency


  Producing output at the highest ratio of outputs to inputs
• Effectiveness


  Meeting the objectives of the business by using inputs productively to meet customer needs.
• Autocratic Management


  A management style where one manager makes all the decisions and takes little input from employees
• Bad Debt


  Debts that cannot be paid back by customers due to unforeseen circumstances.
• Bankruptcy


  A legal procedure of liquidating a business which cannot fully pay their debts out of their current assets
• Blue ocean strategy


  A strategic approach that exploits uncontested markets through product differentiation and low cost
• Bonus


  A payment made in addition to the contracted wage or salary
• Boston Matrix


  A method of analysing the product portfolio in terms of market share and market growth
• Brand


  An identifying name, image or logo that distinguishes a product from its competitors
• Branding


  The act of differentiating a product by creating a unique name, logo or image
• Break even analysis


  It involves using cost and revenue data to identify the break even point of production
• Break even point


  The level of output at which a business will make no profit or loss