Category: Business Studies

O level Business Studies: Difference between added value and profit There is a difference between added value and profit. For instance,   You bought the material for chair for $10 You sold the chair for $100 The added value is $90 The profit is never going to be $90 as you would have incurred some…

O level Business Studies: What is added value? Added value is the difference in the value of the material used to make a product and the selling price of the product. Most businesses add more value by adopting aggressive marketing techniques like building up a brand which they can sell for a higher price.

O level Business Studies: Disadvantages of Division of Labor Doing the same task repeatedly would lead to boredom Dependence on one person for a task could put the entire process on risk

O level Business Studies: Advantages of Division of Labor Division of labor leads to efficiency as the person does the task again and again Less time is wasted as people do not have to move from one task to another  

O level Business Studies: Division of labor Division of labor is when production process is divided into smaller tasks. Division of labor leads to efficiency as people do the task which they perform easily and efficiently.  

O level Business Studies: Specialization Specialization is when the people concentrate on doing one task. This is actually the task a person can do the best. Most businesses have been able to run efficiently due to specialization.

O level Business Studies: How to solve the economic problem? Economic problem is the only problem in this world which cannot be solved. Economic problem is concerned with limited resources and unlimited wants. Even if a country tries its best to solve this problem, it would be impossible to solve it as the wants would…

O level Business Studies: Who is an Entrepreneur? People who take combine the 3 factors of production and take the risk are called entrepreneur.

O level Business Studies: Factor of Production: Enterprise Enterprise is the factor of production which is concerned with combining the other 3 factors of production and taking risk with money.

O level Business Studies: Factor of Production: Capital Capital is the money and equipment used in producing things.