Introduciton 4
Section 1 Understanding business activity 6
1.1 Business activity 8
1.2 Classification of businesses 17
1.3 Enterprise, business growth and size 24
1.4 Types of business organisation 41
1.5 Business objectives and stakeholder objectives 55
Exam-style questions 67
Section 2 People in business 76
2.1 Motivating employees 78
2.2 Organisation and management 95
2.3 Recruitment, selection and training of employees 110
2.4 Internal and external communication 132
Exam-style questions 149
Section 3 Marketing 158
3.1 Marketing, competition and the customer 160
3.2 Market research 174
33. Marketing mix 184
3.4 Marketing strategy 221
Exam-style questions 233
Section 4 Operations Management 242
4.1 Production of goods and services 244
4.2 Costs, scale of production and break-even analysis 256
4.3 Achieving quality production 271
4.4 Location decisions 274
Exam-style questions 279
Section 5 Financial information and decisions 290
5.1 Business finance: needs and sources 292
5.2 Cash flow forecasting and working capital 308
5.3 Income statements 317
5.4 Statement of financial position 325
5.5 Analysis of accounts 331
Exam-style questions 341
Section 6 External influences on business activity 352
6.1 Economic issues 354
6.2 Environmental and ethical issues 367
6.3 Business and the international economy 378
Exam-style questions 393
Glossary 402
Index 409