O Level Business Studies 7115 Chapter 1: 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