3.3.1 - Types and sizes of businesses

Types of businesses:; private sector organisations; state-owned enterprises (public sector); for-profit and not-for-profit organisations; co-operatives; joint ventures.

Use a - types of businesses: • private sector organisations • state-owned enterprises (public to connect the rule to the data and decision in the question.

This matters because a - types of businesses: • private sector organisations • state-owned enterprises (public determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - types of businesses: • private sector organisations • state-owned enterprises (public to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Types of businesses: • private sector organisations • state-owned enterprises (public is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The size of businesses:; SMEs (small- and medium-size enterprises); large corporations.

Use a - size of businesses: • smes (small- and medium-size enterprises) • large corporations to connect the rule to the data and decision in the question.

This matters because a - size of businesses: • smes (small- and medium-size enterprises) • large corporations determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - size of businesses: • smes (small- and medium-size enterprises) • large corporations to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - size of businesses: • SMEs (small- and medium-size enterprises) • large corporations is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

How businesses grow:; organic growth; merger/takeover:; forward vertical integration; backward vertical integration; horizontal integration; conglomerate integration.

Use b - businesses grow: • organic growth • merger/takeover: • forward vertical integration • to connect the rule to the data and decision in the question.

This matters because b - businesses grow: • organic growth • merger/takeover: • forward vertical integration • determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - businesses grow: • organic growth • merger/takeover: • forward vertical integration • to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - businesses grow: • organic growth • merger/takeover: • forward vertical integration • is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Advantages and disadvantages of each type of merger/takeover.

Use c - advantages and disadvantages of each type of merger/takeover to connect the rule to the data and decision in the question.

This matters because c - advantages and disadvantages of each type of merger/takeover determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - advantages and disadvantages of each type of merger/takeover to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Advantages and disadvantages of each type of merger/takeover is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Constraints on business growth:; size of market; access to finance; owner objectives; government regulation and bureaucracy.

Use d - constraints on business growth: • size of market • access to finance • owner objectives to connect the rule to the data and decision in the question.

This matters because d - constraints on business growth: • size of market • access to finance • owner objectives determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply d - constraints on business growth: • size of market • access to finance • owner objectives to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: d - Constraints on business growth: • size of market • access to finance • owner objectives is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Reasons some firms tend to remain small and others grow.

Use e - reasons some firms tend to remain small and others grow to connect the rule to the data and decision in the question.

This matters because e - reasons some firms tend to remain small and others grow determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply e - reasons some firms tend to remain small and others grow to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: e - Reasons some firms tend to remain small and others grow is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Impact of growth of firms on businesses, workers and consumers.

Use f - impact of growth of firms on businesses, workers and consumers to connect the rule to the data and decision in the question.

This matters because f - impact of growth of firms on businesses, workers and consumers determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply f - impact of growth of firms on businesses, workers and consumers to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: f - Impact of growth of firms on businesses, workers and consumers is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Demergers:; reasons for demergers; impact of demergers on businesses, workers and consumers.

Use g - demergers: • reasons for demergers • impact of demergers on businesses, workers and to connect the rule to the data and decision in the question.

This matters because g - demergers: • reasons for demergers • impact of demergers on businesses, workers and determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply g - demergers: • reasons for demergers • impact of demergers on businesses, workers and to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: g - Demergers: • reasons for demergers • impact of demergers on businesses, workers and is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Different business objectives: objectives; profit maximisation; revenue maximisation; sales volume maximisation.; behavioural theories: satisficing.

Use a - different business objectives: objectives • profit maximisation • revenue maximisation to connect the rule to the data and decision in the question.

This matters because a - different business objectives: objectives • profit maximisation • revenue maximisation determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - different business objectives: objectives • profit maximisation • revenue maximisation to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Different business objectives: objectives • profit maximisation • revenue maximisation is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The significance of the divorce of ownership from control for business objectives: the principal-agent problem.

Use b - significance of the divorce of ownership from control for business objectives: the to connect the rule to the data and decision in the question.

This matters because b - significance of the divorce of ownership from control for business objectives: the determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - significance of the divorce of ownership from control for business objectives: the to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - significance of the divorce of ownership from control for business objectives: the is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Formulae for different business objectives:; profit maximisation; revenue maximisation; sales volume maximisation.

Use c - formulae for different business objectives: • profit maximisation • revenue to connect the rule to the data and decision in the question.

This matters because c - formulae for different business objectives: • profit maximisation • revenue determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - formulae for different business objectives: • profit maximisation • revenue to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: use the formula and units given in the question, show the substitution and interpret the result; the calculation alone is not the conclusion.