Introduction to Business - Association of Business Executives

Learning Outcome 2The learner will: Understand the structure and classification of business.Assessment CriteriaThe learner can:2.1 Classify an economyby sectors.Indicative Content2.1.1 Classify an economy by sector: primary, secondary,tertiary.2.1.2 Explain the difference between the private sector and thepublic sector in terms of ownership and objectives.2.2 Describe and evaluatedifferent forms of corporatelegal structure.2.2.1 Describe advantages and disadvantages of different formsof legal structure: sole trader, partnership, franchise, privatelimited company, public limited company.Learning Outcome 3The learner will: Understand how the external environment creates opportunities and threatsfor a business.Assessment CriteriaThe learner can:3.1 Describe the effect onbusinesses of changes inexternal factors.Indicative Content3.1.1 Describe the effect on businesses of changes in externaleconomic factors: interest rates, exchange rates, inflation,unemployment, the business cycle, government legislation,technology.3.1.2 Describe other non-economic influences on businessactivity: environmental, cultural, moral and ethical.3.2 Explain how firms canuse PESTEL analysis aspart of a business strategy.3.2.1 Explain how firms can use PESTEL (political, economic,social, technological, environmental, legislative influences)analysis as part of a business strategy.Learning Outcome 4The learner will: Understand the factors that influence the scale of production, the location ofproduction and the choice between different types of production process.