^—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.^“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.