Edexcel GCSE Business Studies Revision guidance
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Edexcel GCSE Business Studies Revision guidance
Revision help
1. Paper 1 Check list – see following pages
2. Paper 1 Glossary of key terms to learn – see
following pages
3. Paper 3 Check list – see following pages
4. Paper 3 Glossary of key terms to learn – see
following pages
5. Specific revision guide:
http://www.pearsonschoolsandfecolleges.co.uk/Sec
ondary/Revision/Business-Studies/GCSE-business-
studies-revision.aspx
Available in school, price £2, from Mr Edmonds in
B1 at lunchtimes
6. Tutor2U revision presentation and Q&A materials at
http://www.tutor2u.net/blog/index.php/business-
studies/categories/C309
7. Edexcel past papers, marks schemes and examiner
reports at
http://www.edexcel.com/quals/gcse/gcse09/Busines
s/Business/Pages/default.aspxGCSE Business Studies: content
Paper 1 content: Y10
Spotting a business opportunity
Topic What you need to learn Textbook Confident Need to
ref about learn/revise
Understanding Customer needs are Unit 2
customer central to starting a
needs business
how to collect and Unit 2
interpret primary and
secondary market
research in the context
of starting a new
business; the difference
between qualitative and
quantitative research
data
the value of market Unit 2
knowledge through
direct customer contact
Market how to analyse Unit 4
Mapping customer buying habits
and preferences
how businesses can Unit 4
identify market
segments
how businesses can Unit 4
map their market to set
out the key features of
the market they are
planning to operate in
and identify a market
gap
Analysing that initial planning to Unit 6competitor set up a business will
strengths and require an analysis of
weaknesses the competitors in the
market
how to analyse Unit 6
competitor strengths
and weaknesses
and the comparing a
business offering with
that of its rivals enables
an entrepreneur to spot
further opportunities
Understanding the meaning of the Unit 7
the need to term ‘added value’ and
add value explain its importance
in business survival and
success
the main sources of Unit 7
added value
(convenience and
speed, branding,
quality, design, unique
selling point)
What options the principles of Unit 8
exist for franchising as it applies
starting up a to small business start-
business? ups
the advantages and Unit 8
disadvantages of using
a franchise as a means
of starting a new
business and assess
franchising against
other business start-up
options
how to identify a Unit 8
suitable start-up
location
Showing Enterprise
Topic What you need to learn Textbook Confident Need to
ref about learn/revise
What is that enterprise involves Unit 1
enterprise? taking risks, showing
initiative, and a
willingness to undertake
new ventures
the difference between Unit 9
providing goods or a
service
Thinking why thinking creatively Unit 10
creatively is important indeveloping both
competitive advantage
and a new business
the role of lateral Unit 11
thinking and deliberate
creativity in developing
new business ideas
What the important questions Unit 1
questions do to ask when coming up and 9
entrepreneurs with new business ideas
ask? such as Why? Why not?
What if?
the concept of looking Unit 9
beyond the obvious,
asking ‘What if?’ and
judging the value of
outcomes.
Invention and how new business ideas Units 9 -
Innovation – come about 12
generating
new business
ideas
understand the Unit 12
difference between
innovation and
invention and how
innovation means
bringing a new idea to
the market
explain steps an Unit 12
entrepreneur can take to
protect their ideas
through patents and
copyright
Taking a understand the principle Unit 9
calculated of taking a calculated and 14
risk risk
understand that Unit 9
weighing up the risks and 14
and the rewards of a
new business idea is an
important part of the
process of judging
outcome and viability of
a start-up
to see mistakes as part Unit 9
of the process of and 14
learning to succeed
Other explain the importance Unit 15
important of planning, thinking
enterprise ahead, seeingskills opportunities, having
drive and determination
making connections, Unit 15
using mind maps to
collect thoughts and see
opportunities
Putting a business idea into practice
Topic What you need to learn Textbook Confident Need to
ref about learn/revise
Objectives financial objectives: the Unit 23
when starting range of motives for
up wanting to start a
business including profit
or income, financial
security and wealth
non-financial objectives: Unit 23
personal satisfaction,
challenge, to help others
(starting a charity)
The qualities determination and Unit 15
shown by initiative the willingness
entrepreneurs to take risks and make
decisions the ability to
plan and persuade
showing leadership the
role of luck in business
success/failure
Estimating how businesses forecast Unit 17
revenues, sales volumes and
costs and selling prices to estimate
profits revenue
how to determine fixed Unit 18
and variable costs
understand the Unit 19
difference between price
and cost and the concept
of profit
explain how profit is the Unit 19
difference between the
total revenue generated
over a period and the
total costs
the impact of profits and Unit 19
losses on a business and
its owners
Forecasting understand the role and Unit 20
cash flows importance of cash to
the operation of a
business and to its long-
term success
how to estimate monthly Unit 21cash inflows and
outflows to determine
net and cumulative cash
flows
how cash flows are Unit 21
affected by stock levels
and credit terms
explain how cash flow Unit 21
problems can lead to
business failure
(insolvency)
appreciate the role and Unit 21
importance of a business
plan in minimising the
risk involved
Obtaining explain the main sources Unit 22
Start up of finance for a small
Finance business start-up
long-term sources, such Unit 22
as loans, personal
savings, profit, venture
capital and share capital
in the context of a
private limited company
short-term sources such Unit 22
as overdrafts and trade
credit
Making the start up effective
Topic What you need to learn Textbook Confident Need to
ref about learn/revise
Customer understand that a Unit 25
Focus business must
anticipate, identify and
meet customer needs if
it is to be successful
The understand that a Unit 25
marketing business will have to
mix consider price, product,
promotion and place as
important elements to
meet the business
opportunity
understand that different Unit 25
businesses will place
different emphasis on
the elements of the mix
and that the mix can be
amended to meet
changing consumer
needsThe explain the principle of Unit 26
importance of limited and unlimited
limited liability and understand
liability the implications of this in
making a choice on the
status of the business
the differences between Unit 26
sole trader and private
limited company status
Start-up legal understand the need to Unit 27
and tax establish a unique
issues trading and business
name
understand the need to Unit 27
keep careful records, the
implications of VAT,
income tax, National
Insurance and
Corporation Tax for the
business
Effective on- explain how effective Unit 28
time delivery customer service
and includes fulfilling
customer customer orders
satisfaction accurately and on-time
and dealing with
complaints
recognise the Unit 28
importance of
customer satisfaction in
the success of a
business
the importance of repeat Unit 3
purchase for a business
Recruiting, the basic processes Unit 29
training and involved in recruiting
motivating staff to work in a small
staff business
the importance of skill Unit 29,
versus attitude when unit 30
recruiting and training
staff
understand the Unit 31
importance of treating
staff fairly and a simple
understanding of the
impact of relevant
legislation, e.g. relating
to age, sex, race anddisability
discrimination
Understanding the economic context
Topic What you need to learn Textbook Confident Need to
ref about learn/revise
Market the prices of commodity Unit 33,
demand and markets are determined unit 34
supply by the balance between
supply and demand
the difference between Unit 33,
commodity markets and unit 34
normal markets
the effect on small firms Unit 33,
of price changes in raw unit 34
materials and energy
costs
Impact of how changing interest Unit 35
changes in rates affect small firms
interest which tend to rely on
rates on overdrafts and loans for
small finance
businesses
the impact of changing Unit 35
interest rates on
consumer spending
Impact of explain what exchange Unit 36
changes in rates are
exchange
rates
how changes in the £/$ Unit 36
or £/€ affect small firms
that trade abroad or face
competition from abroad
the impact of changing Unit 36
exchange rates on the
price of imported and
exported goods
how to calculate Unit 36
exchange rates on
product prices
How do understand that Unit 37,
business economic activity tends unit 38
cycles affect to rise and fall and that
small changes in the level of
businesses? economic activity can
have serious effects on
small businesses
What effect that stakeholders are Unit 39
do business those groups ordecisions individuals with an
have on interest in a business
stakeholders?
recognise that business Unit 40
decisions have different
effects on different
stakeholders and the
problems a business
may face in meeting the
demands of all
stakeholdersGrade boundaries on paper 1:
A* = 38-40 A = 36-37 B = 32-35 C = 29-31
D = 24-28 E = 19-23 F = 14-18 G = 9-13
To get a grade C you will need 75%!
Advice to candidates:
Multiple-choice format does not mean that the exam is
‘easier’. The questions are designed to require skills,
including application and analysis
Key terms – a number of marks on this paper are gained
through knowledge of key terms
Practice makes perfect
Timing –incorrect responses are often selected by
candidates as a result of questions not being read
thoroughly enough
Use the 45 minutes available to think carefully about each
question, identify distracters, and finally identify the
correct answer. Check all of your answers before the end
of the exam. Candidates need to be aware that questions
are designed to include some strong distracters
Candidates should note that when examination papers are
being produced they are designed to test the full range of
ability. It should therefore be expected that candidates
may find some questions more/less challenging than
others.GCSE Business Studies: Key terms: Paper 1
Key Term Definition Learnt
Primary Research First hand research, gathering information
direct from consumers, e.g. through
questionnaires; also known as field research
Secondary Research Research that has already been carried out or
published by another firm; also known as desk
research
Qualititative Research In-depth research to find out consumers views
and opinions
Quantitative Research Research which involves numerical data which
allows graphs to be drawn and data to be
analysed
Repeat Purchase Customer loyalty shown through continued
purchasing of a product
Effective Demand When the customer has the ability to pay for a
good or service
Market Map A grid that shows two different aspects of the
products or brands within a market; allows a
firm to identify a gap in the market
Market Research Finding out customer opinions and actions
through interviews, questionnaires etc
Innovative A new, perhaps original, product or process
Unethical An action or decision that is morally wrong
Market Segments Sections of a market in which consumers have
different characteristics, e.g. age, gender or
income
Market Share One brand’s sales as a percentage of the total
sales in a market
Adding Value Changing a product in some way to increase its
value to the customer, and allowing the firm to
charge a higher price
USP (Unique Selling Point) A feature of a product or service that is not
shared by any other product or service
Entrepreneur Person who takes the risk of starting their own
business
Royalty Payment An annual payment to a franchisor by a
franchisee for the use of the business name;
usually a percentage of the profits
Copyright A means of protecting the work of a person,
e.g. text, music etc
Patent A means of protecting a product, allowing sole
use; the product has to be registered
Innovation Putting a new idea into practice
Invention A new product, idea or process
Profit Total revenue minus total costs
Revenue The total value of sales; equals the number of
customers x the average amount they spend,
or price x number of items soldSales Forecast An estimate of the future level of sales
Fixed Costs Costs that do not change with the amount
produced, e.g. rent
Variable Costs Costs that do change with the amount
produced, e.g. raw materials
Total Costs Fixed costs added to variable costs; the total
costs of production
Business Plan A document that sets out a new business idea
and how it will succeed
Cash The money that a firm holds in notes and coins
in its tills together with the money in its bank
account
Cash Flow The flow of money in and out of a business
Cash Flow Forecast An estimate of future cash flows into and out of
a business
Insolvency A situation in which a business cannot repay its
short term debts
Liquidation Selling off a firm’s assets in order to raise cash
to pay off the firm’s debts
Dividends Annual payments to shareholders from the
company’s profits
Share Capital The finance raised from the sale of shares in a
limited company
Venture Capitalist An individual that invests in risky businesses, in
exchange for a percentage of the business
Limited Liability A situation in which the responsibility for
paying the debts of a business is limited to
amount invested in the business
Unlimited Liability A situation in which the responsibility for
paying the debts of a business is unlimited;
owner may be forced to sell personal assets to
pay the debts
Customer Focus Keeping your staff thinking about customers’
wants and needs
Target Audience (Market) The part of the market your product is aimed at
(e.g. women aged 15-24)
Sole Trader A business owned by one person; that person
makes all of the decisions and has unlimited
liability
Private Limited Company A business owned by shareholders who enjoy
limited liability; the shares cannot be sold on
the Stock Exchange
Corporation Tax A tax on the company’s profits
Income Tax A tax on peoples’ incomes
National Insurance A tax that is paid by both employers and
employees; it is a contribution towards welfare
benefits; it’s a percentage of the person’s
income
Customer Satisfaction The degree to which buyers approve of the
service they have received
Repeat Purchase Buyers returning regularly to the same supplierSupply Chain (Chain of The links in the chain from the start to then
Supply) end of the supply process; e.g. from wheat
farmer to baker of bread to supermarket
Reference A letter to support a job application from
someone the job applicant has chosen
Discrimination Choosing one type of person in preference to
another, perhaps on the grounds of race, age
or gender
Curriculum Vitae A person’s life history, used to support a job
application
Induction Training Initial training for new staff, to make them feel
comfortable in their new job
Off-the-job Training Training that takes place away from the
workplace (e.g. at a college or training centre)
On-the-job Training Training that takes place while working at the
job (e.g. till training at a supermarket)
Labour Turnover The percentage of the workforce that leaves
each year and has to be replaced
Absenteeism The percentage of the workforce that is absent
on average each day
Consumer Spending The total spent by all shoppers throughout the
country
Exports Goods produced in one country but sold
overseas in another
Recession A downturn in sales and output throughout the
country, often leading to unemployment
Commodity A product in which all supplies are the same,
such as sugar.
Market Any place where buyers and sellers come
together, to agree a price and to exchange
Monopoly A situation in which sales in a market are
dominated by a single supplier
Wholesaler The middleman between producers and
retailers
Economic Growth The rate of increase in the total output of a
country
European Union The group of 27 countries in Europe that trade
freely with one another, and have agreed social
and economic policies
Foreign Exchange Markets The places where currencies are bought and
sold
Bank of England The state-owned bank that lends to the high
street banks such as Barclays, and sets interest
rates in the UK
Bank Rate The interest rate set by the Bank of England;
this forms the base from which high street
banks set their interest rates
Chancellor of the The government minister responsible for
Exchequer decisions about the economy; e.g. about
taxation and government spending set out in
an annual budget
Exchange Rate The price of one currency in terms of another
SPICED Strong pound, imports cheap, exports dear
WIDEC Weak pound, imports dear, exports cheap
Boom When an economy is growing faster than itusually does; will not last, unemployment is
low
Forecast A prediction of future economic events
Stakeholders Groups of people who have an interest in and
are affected by a business, e.g. workers,
customers; NOT rivals!
GCSE Business Studies: Content
Paper 3 Content: Y11
Marketing
Topic What you need to Textbook ref Confident Need to
learn about revise
Marketing and the meaning of the Unit 41
market term ‘marketing’
research
how to collect and Unit 41
interpret
quantitative and
qualitative
research data to
help decide on
issues such as the
appropriate
marketing mix
Product trial the concept of Unit 42
and repeat breaking down
purchase ‘sales’ into product
trial and repeat
purchase and how
to maximise repeat
purchase through
customer loyalty
Product life the four phases of Unit 43
cycle the life cycle,
extension
strategies, cash
flow and the life
cycle
Boston Box product portfolio Unit 44
matrix analysis through
the Boston box
Branding and the importance of Unit 45
differentiation brands as an aid to
product trial andrepeat purchase
and
the need to
differentiate a
product/service
from others, given
the level of
competition
Building a the importance of Unit 46
successful managing a brand
marketing mix through the key
variables that
make up the mix:
Product, Price,
Promotion and
Place
Meeting customer needs
Topic What you need to Textbook ref Confident Need to
learn about revise
Design and design as a key Unit 48
research approach to
development product
differentiation, be
able to appreciate
the design mix and
show the need for
scientific research
to provide the
basis for
development
Managing stock to interpret bar Unit 49
gate stock graphs
to see how stock
control should
work in theory and
understand the
need for the use of
Just In Time (JIT)
stock control
the advantages Unit 49
and
drawbacks of
different stock
control methods
Managing quality control Unit 50
Quality versus a culture of
quality assurance
Cost-effective keeping Unit 51operations productivity up and
and costs down to
competitiveness ensure low costs
and allow for
competitive prices
Effective providing Unit 52
customer customers with the
service service level they
want,
when they want it,
and to see the link
with repeat
purchase levels
the disadvantages Unit 52
of poor customer
service
Meeting a brief introduction Unit 53
consumer to the purpose of
protection laws Trade Descriptions
and Sale of Goods
legislation and the
effects of this
legislation on
business
Effective Financial Management
Topic What you need to Textbook ref Confident Need to
learn about revise
How to improve key aspects of Unit 54
cash flow financial
management such
as how to establish
more favourable
credit terms with
customers and
suppliers and the
practice of de
stocking
how to analyse the Unit 54
difference between
increasing cash
inflows and
reducing cash
outflows
How to improve cutting costs and Unit 55
profit increasing
revenues, and the
impact of price
changes on profit
Break-even how to draw and Unit 56
charts and interpret break-break-even even charts;
analysis calculate the
break-even point
and
margin of safety
how changes to Unit 56
price and costs
affect the break-
even point
the value to a Unit 56
business of using
break-even
analysis
Financing how to finance a Unit 57
growth business from both
internal sources
(profit, asset sales)
and external
sources (share
capital, debt),
including stock
market flotation
Effective People Management
Topic What you need to Textbook ref Confident Need to
learn about revise
Organisational the importance of Unit 58
structure divisional
structure, levels of
hierarchy, chains
of command, and
centralised
versus
decentralised
systems
Motivation the significance of Unit 59
theory motivation in the
workplace, with
specific focus on
Maslow’s Hierarchy
of Needs and its
potential in
organisations
the idea that Unit 59
motivation
comes from within
Communication the impact of Unit 60
insufficient or
excessive
communication on
efficiency, the
impact on staff andtheir motivation
and the barriers to
effective
communication
Remuneration the impact on staff Unit 61
of various payment
strategies,
including time,
piece rate,
commission; full-
time salary versus
freelance or
temporary work;
fringe benefits
the impact on Unit 61
business of
different payment
systems
The Wider World
Topic What you need to Textbook ref Confident Need to
learn about revise
Ethics in the meaning of the Unit 62
business term ‘ethics’ in
business and the
complexity of
moral issues
affecting
organisations
possible trade-off Unit 62
between ethics and
profit
the importance of Unit 62
the potential
effects of pressure
group activity
Environmental how businesses Unit 63
issues affect the
environment
the importance of Unit 63
short term
environmental
effects (impact on
traffic congestion;
air, noise and
water pollution;
recycling) and
long-term
environmental
effects (global
warming and
resource depletion)Economic the extremes of Unit 64
issues affecting income distribution
international internationally
trade
the effect of import Unit 64
protection and
export subsidy on
businesses
The impact of the impact of Unit 65
government regulation and
and the EU taxation and the
benefits and
drawbacks of
minimum wage,
maternity/paternity
rights and health
and safety
regulations on
businesses
GCSE Business Studies: paper 3 – Glossary
Key term Definition Learnt
Marketing The management process of identify,
anticipating and satisfying consumer
demand
Primary Research First hand research, direct from the
consumer, for a specific purpose; also
known as field research
Secondary Research Information from second hand sources;
using data that has already been gathered
for a different purpose; also known as desk
research
Qualitative Research In-depth research using focus groups and
in-depth interviews in order to find out
about consumers opinions and views
Quantitative Research that yields numerical data that can
Research be analysed and graphed
Socio-economic Social class of customers; A/B =
group (ABC1C2DE) professionals, E = unemployed, those on
benefits and pensioners
Product Trial The consumer purchases the product for the
first time
Repeat Purchase The consumer regularly purchases the
product or brand
Brand Loyalty The consumer displays a long termcommitment to buy the brand
Product Life Cycle A business model which shows how the sales
model of a product decline with time, and identifies
stages in the life on the product
Extension Strategy A marketing action by a business to prolong
the sales of a product and prevent it going
into decline
Boston Box Matrix A business model which groups the products
of a business and shows which ones have
the best prospects for the future
‘Stars’ Products that are in high growth markets
but with a high market share
‘Problem Children’ Products that are in high growth markets
but with a low market share
‘Cash Cows’ Products that are in slow growing markets
but with a high market share
‘Dogs’ Products that are in a slow growing market
with a low market share
Brand A product with a unique character, for
instance in design or image; name given to
a family of products
USP (unique selling A key feature of a product that is not shared
point) by any of its rivals
Differentiation The process of making a product seem
different/distinct from its rivals
Logo A picture or symbol that represents a
business
Marketing Mix The 4P’s (price, place, product and
promotion); having the right product in the
right place at the right price, and having
promoted it so that consumers known about
it and have been persuaded to buy
Customer What consumers expect they are going to
Expectations receive for the service they have paid for
Design Mix The combination of economic manufacture
(cost), function and aesthetics (appearance)
in each product
Patent A way of protecting a product, production
method etc so that it cannot be copied for
20 years
Buffer Stock The minimum stock level held at all times to
avoid running out
Stocks Items held by a business for use or sale,
e.g. components for manufacturing, sellable
products for a retailer
Business Culture The way we do things around here; the
accepted attitudes and practices of staff at a
workplace
Quality control Putting measures in place to check that the
customer receives an acceptable level of
qualityWarranty The guarantee by the producer that it will
repair any faults in a product for a specific
period of time
Productivity The efficiency of the worker, measured in
output per worker per hour
Automated Processes that are fully carried out by
machines rather than workers
Durability How strong a product is and therefore how
well and long it lasts
Monopoly When there is only one supplier, i.e. there is
no competition
JIT – just in time A system designed to reduce the amount of
cash tied up in stock – firms buy raw
materials only when they are needed, and
only produce goods to order, reducing
storage costs
Profit The difference between revenue and costs
Revenue The total amount earned from sale of
products; calculated by multiplying the
number of items sold by the price
Break-even point The level of sales at which total costs = total
revenue; the firm makes neither a profit nor
a loss; at output below this point the firm
makes a loss; at output above this point the
firm makes a loss
Break-even chart A graph which shows total costs and total
revenue, and is used to find the break-even
level of sales
Margin of Safety The positive difference between the firm’s
actual sales and its break-even level of sales
External sources of Sources of finance from outside the
finance business, e.g. loans, venture capital
Internal sources of Sources of finance from within the business,
finance from the business’s own resources, e.g. sale
of assets
Organisation chart A diagram that shows the internal structure
of a business
Centralised A business in which most decisions are made
Organisation at head office
Decentralised A business in which most decisions are made
Organisation at a local level
Motivation The desire to work hard, to achieve the
business’s goals
Communication The passing of information from one person
to another
Barrier to Something that prevents the flow of
communication information
Internal Communication that takes place between
communication workers within the business
External Communication between the business andCommunication people outside of the business, e.g.
customers, suppliers
Remuneration The reward of employees, e.g. pay
Wage A method of paying employees for the work
they do, usually by the hour, on a weekly
basis
Salary A method of paying employees for their
work, usually calculated on an annual basis,
paid monthly
Commission A method of paying employees for their
work based on the number of items sold, or
the value of items sold
Piece rate A method of paying employees for their
work based on the number of items
produced
Time rate A method of paying employees for their
work based on the number of hours worked
Ethics A set of moral principles
Ethical Doing what is morally right, not just what is
legal
Legislation Laws passed by parliament, e.g. the Sale of
Goods Act
Social Responsibility Acting in ways that show that the business
cares about all members of society, e.g.
through recycling
Social enterprise A not-for-profit business that trades in order
to benefit a social cause, e.g. Tradecraft
Pressure group A group with a common interest or goal who
seek through their actions to change the
behaviour of businesses
Fairtrade Movement A group that supports the suppliers of
goods, especially farmers in developing
countries by making sure that they are paid
a fair price (above the market price) for
their products
Scarcity Limited resources but unlimited wants and
needs
Quota A physical limit placed on imports
Subsidy A payment by the government to a business
in order to reduce its costs so that is can
compete with imports, or export more
cheaply
Tariff A tax placed on imported goods and services
Interest rate The charge imposed by banks for borrowing
money (loan) and the reward to savers
Tax A financial charge set by the government,
used to collect revenue for the government
in order to pay for government spendingYou can also read
