Title 1. AS Notes.pdf ✅

AS – BUSINESS (9609) [SECTION 1] Topics Lecture = 9 Topic 1: Enterprise 1,2 Topic 2: Business structure 3,4 Topic 3: Size of business 5,6 Topic 4: Business objectives 7,8 Topic 5: Stakeholders in a business 9 [2025 Edition]
AS / Level – Business (9609) – SECTION 1 AATIK TASNEEM | O/A-LEVEL | BUSINESS & ECONOMICS | +92 304 1122845 1 TOPIC 1: ENTERPRISE LECTURE 1 1. BUSINESS ACTIVITY 1. Business Enterprise Definition | Business Enterprise: (1) A business enterprise is any organization that uses resources to meet the needs of customers by providing a product or service that they demand. (2) These businesses usually have profit as their primary motive. 2. Factors of Production Definition | Factors of Production: (1) These resources are required to carry out a business activity are collectively known as the factors of production. (2) These include Land, Labor, Capital and Enterprise. Factor Description 1. Land It represents all the natural resources which might be renewable and non-renewable which are consumed during the business activity, e.g. plains, seas, mines etc. 2. Labor Manual and skilled people/individuals make up the workforce of the business. E.g. carpenters, doctors, etc. 3. Capital Capital is not only the finance needed to set up the business and pay for its operations, but is also all the man-made resources used in production. These include capital goods, which are the physical goods used by industry to aid in the production of other goods and services, example: machines and commercial vehicles. 4. Enterprise This is the driving force, provided by risk- taking individuals, that combines the other factors of production into a unit capable of producing goods and services. It provides a managing, decision-making and coordinating role. 3. Added Value Definition | Added Value: (1) Added value is the difference between selling price of the finished good and (2) cost of bought in materials. Added value = Selling price – Cost of bought in material Ways to improve added value: (1) providing better customer service, (2) advertising, (3) attractive displays (4) buying cheaper raw material etc. 4. Opportunity Cost Definition | Opportunity Cost: (1) Opportunity costs is defined as the next best alternative forgone. (2) Examples: (1) Consumer An individual has $1000 and he/she can either buy a laptop or a smart phone. If the individual chooses the laptop the smart phone becomes the opportunity cost. (2) Businesses (1) A business has $1million. It can either spend it on expansion to a new country or invest in research and development. If the businesses choose to invest it in expansion, the research and development becomes the opportunity cost. (2) Furthermore, it can either generate dividends to shareholders or pay the workers better. (3) Government A government has two options either to build roads or building schools in the country. If the government chooses to build roads, developing schools would become the opportunity cost.

AS / Level – Business (9609) – SECTION 1 AATIK TASNEEM | O/A-LEVEL | BUSINESS & ECONOMICS | +92 304 1122845 3 LECTURE 2 2. ENTREPRENEUR AND INTRAPRENEURS 1. Entrepreneur Definition | Entrepreneur: (1) An entrepreneur is an individual who organizes the factors of production, (2) has the new idea for the business, invested capital to assumes the risk with usually the aim of generating profit. These entrepreneurs usually face issues like: (1) Lack of business opportunity (2) lack of finance (3) Poor location (4) High competition when they start. Qualities Description 1. Innovation Must be able to carve a new niche in the market, attract customers in innovative ways and present their business as being different from others in the same market. This requires original ideas and an ability to do things differently. 2. Multiskilled Entrepreneur will have to make the product (or provide the service), promote it, sell it and keep accounts. These different business tasks require a person who has many different qualities which includes technical, people skills and money handling. 3. Self -Confidence Many business start-ups fail, yet this would not discourage a true entrepreneur who would have such belief in themselves and their business idea that they would bounce back from any setbacks. 4. Risk Taking Entrepreneurs must be willing to take calculated risks in order to see results. Often the risk they take is by investing their own savings in the new business. 5. Leadership They are able to guide their workers and motivate them to perform the task willingly and effectively. 2. Intrapreneurs Definition | Intrapreneur: (1) A business employee who takes direct responsibility for turning idea into a profitable new product of business venture. (2) They develop an innovative product within an existing business where the risk and reward remain with the business. There are several benefits of intrapreneurs to the business: (1) Creativity and Innovation to the business – new products and methods of selling help to increase business sales. (2) New ways of doing business – new business processes help to improve efficiency. (3) Retain good employees – helps to keep talented workers and maintain a competitive edge.