?What is Business Studies?^

?Business studies is the study of how businesses are set up, financed,

organised and controlled, how people are employed, managed and paid, how

goods are developed, produced and sold, how goods and services are

priced and how the local, national and international government help or

hinder businesses.^ñ1

In studying the setting up of a business there are many aspects that

need to be considered. Such as the type of business ownership^ñs which

are suitable for the entrepreneur, where the capital will be coming

from, what goods or services could be considered to sell and where the

business should be located. The extensive amount of research, which is

carried out before the business operates, is also studied.

There are many sources of finance open to the entrepreneur, which also

need to be studied in depth. The business owner has to set the right

price for its goods or services ^? a price which is of convenience to the

consumer and which is affordable for the owner. This is possible by

using break-even analysis, and again market research. Owners of

businesses need to constantly consider the financial situation of the

firm this may include constructing various balance sheets and a

monthly/annually profit and loss account ^? construction of these are

important in business. Charts and graphs are also constructed so that

the state of the business can be analysed in depth.

Labour in a business involves many aspects. The recruitment of new

employees ^? from the advertising of the post right through to the

selection of the most appropriate candidate. It also includes

training/education involved in business and even how to motivate an

employee and the different payment methods they can receive. The main

sections in an organisation chart actually breaks up the sections in

business ^? marketing, finance, production and labour. Trade unions are

also a part of labour in business ^? employees can sometimes cause

potential harm to the business as well as being a valuable asset, the

stages of what a trade union can do are also studied.

Market research is also very important to any firm the marketing mix

breaks it down into individual sections which are important in business

studies ^? product, place, price and promotion. There are many different

types of research and different types of sampling methods, which the

researcher has to consider before preceding.

The source of the good or service is a part of business studies, what

raw materials are needed, how was it made and why was the product made ^?

is there a market for it. The life of a product before production is

studied as well as the life of a product when it is in the market and

also when it leaves.

External influences such as the government can help or destroy

businesses. Many different types of external influences and other

matters that cause harm to businesses are looked at.

It is also important to be aware of the various automation methods used

in business to improve efficiency. Many firms use information technology

in various ways such as ^? EPOS systems and banking, business studies

involves briefly the studying of this.

Overall, business studies is not just about simply looking at how to run

a business it is about finding out how businesses and other

organisations actually operate and how the factors that influence modern

businesses are dealt with. All the above points and possibly more are

studied in great depth in a business studies course.

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