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BUSINESS STUDIES
O LEVEL 7115
CHAPTER # 1 : BUSINESS ACTIVITY
Course Instructor : Osama Abdullah Nagda
Instructor : Osama Abdullah Nagda
Email ID: Osamanagda@gmail.com
Reference Book: Complete IGCSE Business Studies 4th Edition by Karen Borrington & Peter Stimpson
CAMBRIDGE O LEVEL BUSINESS STUDIES (7115)
SYLLABUS
• Section 1: Understanding Business Activity
• Section 2: People in Business
• Section 3: Marketing
• Section 4: Operations management
• Section 5: Financial information and decisions
• Section 6: External influences on business activity
Instructor : Osama Abdullah Nagda
Email ID: Osamanagda@gmail.com
Reference Book: Complete IGCSE Business Studies 4th Edition by Karen Borrington & Peter Stimpson
ASSESSMENT
Instructor : Osama Abdullah Nagda
Email ID: Osamanagda@gmail.com
Reference Book: Complete IGCSE Business Studies 4th Edition by Karen Borrington & Peter Stimpson
UNDERSTANDING BUSINESS ACTIVITY
• Business Activity
• Classification Of businesses
• Enterprise Growth and Size
• Types of Business Organization
• Business Objectives and Stakeholders Objectives
Instructor : Osama Abdullah Nagda
Email ID: Osamanagda@gmail.com
Reference Book: Complete IGCSE Business Studies 4th Edition by Karen Borrington & Peter Stimpson
BASIC PURPOSE OF BUSINESS ACTIVITY
• The purpose of all Businesses is to combine factors of production to make
products which will satisfy people wants .
Instructor : Osama Abdullah Nagda
Email ID: Osamanagda@gmail.com
Reference Book: Complete IGCSE Business Studies 4th Edition by Karen Borrington & Peter Stimpson
NEEDS & WANTS
Instructor : Osama Abdullah Nagda
Email ID: Osamanagda@gmail.com
Reference Book: Complete IGCSE Business Studies 4th Edition by Karen Borrington & Peter Stimpson
ECONOMIC PROBLEM & SCARCITY
• Limited resources - Unlimited wants = Scarcity
• Scarcity is the lack of sufficient products to fulfil the total wants of population
Instructor : Osama Abdullah Nagda
Email ID: Osamanagda@gmail.com
Reference Book: Complete IGCSE Business Studies 4th Edition by Karen Borrington & Peter Stimpson
OPPORTUNITY COST
• It is the cost of next best alternative forgone
• Example : Attending this Lecture may have its opportunity cost as the time could
also be spent at a Café or Beach ☺
Instructor : Osama Abdullah Nagda
Email ID: Osamanagda@gmail.com
Reference Book: Complete IGCSE Business Studies 4th Edition by Karen Borrington & Peter Stimpson
SOME IMPORTANT EXAMPLES
Instructor : Osama Abdullah Nagda
Email ID: Osamanagda@gmail.com
Reference Book: Complete IGCSE Business Studies 4th Edition by Karen Borrington & Peter Stimpson
FACTORS OF PRODUCTION
Land Labor Capital
Enterprise
Instructor : Osama Abdullah Nagda
Email ID: Osamanagda@gmail.com
Reference Book: Cambridge international AS and A level Business Studies by Malcolm Surridge and
Andrew Gillespie
SPECIALIZATION & DIVISION OF LABOR
• Specialization occurs when people and businesses concentrate on what they are
best at.
• Division of Labor when production process is split in to different tasks and each
worker performs their own task.
Instructor : Osama Abdullah Nagda
Email ID: Osamanagda@gmail.com
Reference Book: Complete IGCSE Business Studies 4th Edition by Karen Borrington & Peter Stimpson
ADDED VALUE
• It is the difference between selling price and the cost of initial components bought .
Selling Price $3
Less: Cost of Initial Component ($2)
Added Value $1
Instructor : Osama Abdullah Nagda
Email ID: Osamanagda@gmail.com
Reference Book: Cambridge international AS and A level Business Studies by Malcolm Surridge and
Andrew Gillespie
Initial Component includes Tea
Bag, Sugar and Water costing
$2
THANKS FOR PAYING ATTENTION 
Instructor : Osama Abdullah Nagda
Email ID: Osamanagda@gmail.com
Reference Book: Complete IGCSE Business Studies 4th Edition by Karen Borrington & Peter Stimpson

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Understanding Business Activity

  • 1. BUSINESS STUDIES O LEVEL 7115 CHAPTER # 1 : BUSINESS ACTIVITY Course Instructor : Osama Abdullah Nagda Instructor : Osama Abdullah Nagda Email ID: Osamanagda@gmail.com Reference Book: Complete IGCSE Business Studies 4th Edition by Karen Borrington & Peter Stimpson
  • 2. CAMBRIDGE O LEVEL BUSINESS STUDIES (7115) SYLLABUS • Section 1: Understanding Business Activity • Section 2: People in Business • Section 3: Marketing • Section 4: Operations management • Section 5: Financial information and decisions • Section 6: External influences on business activity Instructor : Osama Abdullah Nagda Email ID: Osamanagda@gmail.com Reference Book: Complete IGCSE Business Studies 4th Edition by Karen Borrington & Peter Stimpson
  • 3. ASSESSMENT Instructor : Osama Abdullah Nagda Email ID: Osamanagda@gmail.com Reference Book: Complete IGCSE Business Studies 4th Edition by Karen Borrington & Peter Stimpson
  • 4. UNDERSTANDING BUSINESS ACTIVITY • Business Activity • Classification Of businesses • Enterprise Growth and Size • Types of Business Organization • Business Objectives and Stakeholders Objectives Instructor : Osama Abdullah Nagda Email ID: Osamanagda@gmail.com Reference Book: Complete IGCSE Business Studies 4th Edition by Karen Borrington & Peter Stimpson
  • 5. BASIC PURPOSE OF BUSINESS ACTIVITY • The purpose of all Businesses is to combine factors of production to make products which will satisfy people wants . Instructor : Osama Abdullah Nagda Email ID: Osamanagda@gmail.com Reference Book: Complete IGCSE Business Studies 4th Edition by Karen Borrington & Peter Stimpson
  • 6. NEEDS & WANTS Instructor : Osama Abdullah Nagda Email ID: Osamanagda@gmail.com Reference Book: Complete IGCSE Business Studies 4th Edition by Karen Borrington & Peter Stimpson
  • 7. ECONOMIC PROBLEM & SCARCITY • Limited resources - Unlimited wants = Scarcity • Scarcity is the lack of sufficient products to fulfil the total wants of population Instructor : Osama Abdullah Nagda Email ID: Osamanagda@gmail.com Reference Book: Complete IGCSE Business Studies 4th Edition by Karen Borrington & Peter Stimpson
  • 8. OPPORTUNITY COST • It is the cost of next best alternative forgone • Example : Attending this Lecture may have its opportunity cost as the time could also be spent at a Café or Beach ☺ Instructor : Osama Abdullah Nagda Email ID: Osamanagda@gmail.com Reference Book: Complete IGCSE Business Studies 4th Edition by Karen Borrington & Peter Stimpson
  • 9. SOME IMPORTANT EXAMPLES Instructor : Osama Abdullah Nagda Email ID: Osamanagda@gmail.com Reference Book: Complete IGCSE Business Studies 4th Edition by Karen Borrington & Peter Stimpson
  • 10. FACTORS OF PRODUCTION Land Labor Capital Enterprise Instructor : Osama Abdullah Nagda Email ID: Osamanagda@gmail.com Reference Book: Cambridge international AS and A level Business Studies by Malcolm Surridge and Andrew Gillespie
  • 11. SPECIALIZATION & DIVISION OF LABOR • Specialization occurs when people and businesses concentrate on what they are best at. • Division of Labor when production process is split in to different tasks and each worker performs their own task. Instructor : Osama Abdullah Nagda Email ID: Osamanagda@gmail.com Reference Book: Complete IGCSE Business Studies 4th Edition by Karen Borrington & Peter Stimpson
  • 12. ADDED VALUE • It is the difference between selling price and the cost of initial components bought . Selling Price $3 Less: Cost of Initial Component ($2) Added Value $1 Instructor : Osama Abdullah Nagda Email ID: Osamanagda@gmail.com Reference Book: Cambridge international AS and A level Business Studies by Malcolm Surridge and Andrew Gillespie Initial Component includes Tea Bag, Sugar and Water costing $2
  • 13. THANKS FOR PAYING ATTENTION  Instructor : Osama Abdullah Nagda Email ID: Osamanagda@gmail.com Reference Book: Complete IGCSE Business Studies 4th Edition by Karen Borrington & Peter Stimpson