Business Studies Unit 2 Revision

Business Studies Unit 2 Revision

1. Sectors of Industry

   • Primary
     • Beginning of Chain of Productions
     • Where raw materials are extracted, grown or cut down
     • E.g. Potatoes to crisps
   • Secondary
     • Sector where raw materials become goods
     • This adds value to them
   • Tertiary
     • Sometimes referred to as the service sector
     • Where the final product is sold
   • Interdependence - All of these sectors rely on each other like a food chain

2. Factors that Affect the Location of a Business

   • Tradition
   • Nature of Product/Service e.g. shipuilding
   • Transport and Infrastructure
   • Government Influences
   • Cost of Location
     • Greenfield sites - Land that has never been built on, usually on the edge of a city or town
     • Brownfield sites - Land that has been built on but may have been abandoned
   • Availability and access to raw materials
   • Availability of labour
   • Access to and nearness of marketts

3. Aims and Objectives of a Business

   • Aim - An overall goal
   • Objective - Step to get to the aim
     • 3 common business objectives
       • Survival
       • Growth
       • Profit

4. Types of Business Ownerships

   • Sole Trader
     • Only one owner of business
     • Most likely loans money from bank to start-up
     • Hard to operate with little capital
     • Easy and cheap
     • Keep all profit after tax
     • Unlimited liability
     • Long hours
   • Partnership
     • Business owned by 2 or more people
     • More capital introduced
     • Can help expansion of business
     • Work can be shared
     • Profit must be shared
     • Unlimited liability
     • Partners may not always agree
   • Private Limited Company (LTD)
   • Public Limited Company (PLC)
   • Franchise
   • Co-operative