^�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.^�1
In studying the setting up of a business there are many aspects that need
to be considered. Such as the type of business ownership^�s 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.
