PSEB SS Business Studies cheat sheet
PSEB SS Business Studies · Keep the key ideas within reach.
Business Studies: Core Concepts and Environment
Business is an economic activity involving the production or exchange of goods and services for profit; it is distinguished from professions and employment by its profit motive and risk-bearing nature.
Characteristics of business include: economic activity, production/procurement of goods and services, sale or exchange for value, continuity in dealing, profit motive, risk bearing, and uncertainty of return.
Objectives of business: economic (profit, market share, innovation, productivity) and social (supply of quality goods, employment generation, employee welfare, community service, environmental protection).
Business environment = sum of internal and external factors affecting business; external environment includes micro (customers, competitors, suppliers, marketing intermediaries, publics) and macro (political, economic, social, technological, legal, environmental) forces.
Features of business environment: totality of external forces, specific and general forces, inter-relatedness, dynamic nature, uncertainty, complexity, and relativity.
Importance of environment analysis: identifying opportunities and threats, tapping useful resources, coping with rapid changes, assisting in planning, and improving performance.
Dimensions of business environment: Economic (interest rates, inflation, income), Social (customers' tastes, traditions), Technological (innovations, R&D), Political (government stability, policies), Legal (legislation, court rulings).
Business risks are the possibility of inadequate profits or losses due to uncertainties; risks are inherent in business and cannot be eliminated, only anticipated and managed.
Industry classification by size and investment: micro, small, medium, and large enterprises; classification criteria vary by country and are typically based on investment in plant and machinery or turnover.