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Pearson Edexcel IAL Economics

Unit 3: Business Behaviour

3.3.1 - Types and sizes of businesses

3.3.1.1a - Types of businesses: • private sector organisations • state-owned enterprises (public

3.3.1.2a - size of businesses: • SMEs (small- and medium-size enterprises) • large corporations

3.3.1.2b - businesses grow: • organic growth • merger/takeover: • forward vertical integration •

3.3.1.2c - Advantages and disadvantages of each type of merger/takeover

3.3.1.2d - Constraints on business growth: • size of market • access to finance • owner objectives

3.3.1.2e - Reasons some firms tend to remain small and others grow

3.3.1.2f - Impact of growth of firms on businesses, workers and consumers

3.3.1.2g - Demergers: • reasons for demergers • impact of demergers on businesses, workers and

3.3.1.3a - Different business objectives: objectives • profit maximisation • revenue maximisation

3.3.1.3b - significance of the divorce of ownership from control for business objectives: the

3.3.1.3c - Formulae for different business objectives: • profit maximisation • revenue

3.3.2 - Revenue, costs and profits

3.3.3 - Market structures and contestability

3.3.4 - Labour markets

3.3.5 - Government intervention

Unit 4: Developments in the Global Economy

Assessed quantitative skills

A-Level/Edexcel/Economics//A2/Concept/Unit 3: Business Behaviour/3.3.1 - Types and sizes of businesses/3.3.1.2g - Demergers: • reasons for demergers • impact of demergers on businesses, workers and

Unit 3: Business Behaviour

Syllabus: 2018
Section: —
Level: A2

Exam analysis

Most tested topics

Types and sizes of businesses
Revenue, costs and profits
Market structures and contestability
Labour markets
Government intervention