IGCSE, A Level Business Student Forum

[KN]It will be hard to compare business size if the business is capital intensive.
[APP]For example a factory may employ more capital intensive machinery than a labour intensive accounting firm.
[AN]If number of employees is used to measure business size,it might lead to an inaccurate result and ...

[KN] Capital employed will give an accurate figure of the value of the airline's assets like airplanes, airport lounges etc.
[APP]For example a large airline like Qatar airways will spend more on its assets rather than a small regional airline.
[AN] High spending on airplanes, airport lounges and ...

[KN]Large businesses have a high value of sales than smaller businesses.
[APP]For example a large wooden manufacturing business might have a higher value of sales than a small carpentry business.
[AN]Higher value of sales gives the business more market share and more sales means more customers which ...

[KN]Larger businesses have more workers than small businesses.
[APP]For example a small restaurant may require less workers because of less demand than a large restaurant with more customers.
[AN]A higher number of workers leads to higher productive capacity of the economy which leads to efficiency ...

[KN]Limited liability.
[APP]For example if a business fails ,the owner doesn't have to recover the loss by paying his personal assets.
[AN]This encourages the owner to take risks and invest more which leads to higher market share resulting in growth.

[KN]Collective ideas lead to better decision making.
[APP]For example in a clothing store business,when all members collectively give ideas about new designs,it will be easier to manage.
[AN]This will lead to higher efficiency which will save time and cut costs leading to higher profit margins ...

[KN]When competitors set lower prices from abroad,it results in de industrialization.
[APP]For example UK cant compete with china in secondary sector because china charges lower prices.
[AN]This leads to de industrialization which bears more output in the economy leading to higher productivity which ...

[KN]It provides public services.
[APP]For example the government provides services like police, healthcare, education to ensure rights of the citizens.
[AN]These services are required to run the country and maintain high literacy rate, prevent crimes and a higher life expectancy which leads to a ...

[KN]It has led to the creation of new services online.
[APP]For example online stores like Amazon have made it easier for customers to purchase items.
[AN]Online stores are considered more convenient by customers therefore there is high demand in these businesses which leads to job creation leading ...

[KN]Helps in delivering raw materials to factories.
[APP]For example a wooden furniture manufacturing business needs transportation to deliver wooden logs to the production plant.
[AN] Transportation makes it easier and more efficient to transfer raw materials ensuring their good quality which leads ...

[KN De-industrialization
[APP]For example China has started focusing more on its service based industries rather than manufacturing businesses.
[AN] Tertiary sector bears more output than secondary and primary sector which leads to higher GDP leading to economic growth in the country.

[KN]The business might face increased costs.
[APP]For example a manufacturing business might need to install machinery which doesn't cause noise pollution which might be costly.
[AN]As a result, profit margins might decrease due to high costs leading to less profit to re invest in the business and ...

[KN]The growth of the tertiary sector has led to de-industrialization in developed countries.
[APP]For example jobs have increased in call centers and there is less demand for workers in secondary sector.
[AN] Tertiary sector is a more skill based sector compared to primary and secondary,therefore ...

[KN] Primary sector is involved in extracting resources from the land and provide them to the secondary sector where these resources are manufactured into a useful product.
[APP]A primary sector forestry business cuts down trees and provides wood to another wooden furniture secondary sector business ...

[KN]Growth of the secondary sector will increase jobs.
[APP]For example a new steel mill is opened in a country,it will create more jobs in the manufacturing of steel.
[AN] Increase in jobs reduces unemployment in the country which increases the output produced leading to increase in GDP resulting ...