Business Studies Notes
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Business Studies Notes by Abdullah www.studyguide.pk StudyGuide.PK Business Studies O-Level Notes
Page 1
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Business aims and Activities
Private sector aims
The aim of a business in the private sector is to survive by making a profit. This may be a sole trader working alone, like a newsagent, or thousands of shareholders in a large Public
Limited Company.
Businesses gain a larger market-share [a percentage of overall sales in an industry] by increasing the sales of their products against competitors. This may involve reducing prices.
To win the loyalty of customers and encourage repeat sales [Customers returning to buy the product from the same business], businesses need to be reliable and provide a quality service to their customers.
Private sector activities
The activities of industry can be divided into stages - primary, secondary and tertiary production. These stages form the chain of production and provide consumers with the finished goods.
Primary production
This involves acquiring raw materials. For example, metals and coal have to be mined; oil drilled from the ground; rubber tapped from trees; foodstuffs farmed, and fish trawled. This is sometimes known as extractive production.
Secondary production
Is the manufacturing and assembly process. This involves converting raw materials into components, eg making plastics from oil, and assembling the product, eg building houses, bridges and roads.
Tertiary production
This refers to the commercial services that support the production and distribution process, eg insurance, transport, advertising, warehousing and retail, teaching and health care.
StudyGuide.PK Business Studies O-Level Notes
Page 2
www.studyguide.pk
Limited companies
All limited companies are incorporated [ firm with separate legal existence], which means they can sue or own assets in their own right. Their owners are not personally liable for the firm's debts
Business Studies Notes by Abdullah www.studyguide.pk StudyGuide.PK Business Studies O-Level Notes
Page 1
www.studyguide.pk
Business aims and Activities
Private sector aims
The aim of a business in the private sector is to survive by making a profit. This may be a sole trader working alone, like a newsagent, or thousands of shareholders in a large Public
Limited Company.
Businesses gain a larger market-share [a percentage of overall sales in an industry] by increasing the sales of their products against competitors. This may involve reducing prices.
To win the loyalty of customers and encourage repeat sales [Customers returning to buy the product from the same business], businesses need to be reliable and provide a quality service to their customers.
Private sector activities
The activities of industry can be divided into stages - primary, secondary and tertiary production. These stages form the chain of production and provide consumers with the finished goods.
Primary production
This involves acquiring raw materials. For example, metals and coal have to be mined; oil drilled from the ground; rubber tapped from trees; foodstuffs farmed, and fish trawled. This is sometimes known as extractive production.
Secondary production
Is the manufacturing and assembly process. This involves converting raw materials into components, eg making plastics from oil, and assembling the product, eg building houses, bridges and roads.
Tertiary production
This refers to the commercial services that support the production and distribution process, eg insurance, transport, advertising, warehousing and retail, teaching and health care.
StudyGuide.PK Business Studies O-Level Notes
Page 2
www.studyguide.pk
Limited companies
All limited companies are incorporated [ firm with separate legal existence], which means they can sue or own assets in their own right. Their owners are not personally liable for the firm's debts