Topic One (1.1): The Purpose and Nature of Business Activity

Introduction Icon.png Introduction

CAIE provides a useful set of supporting resources for IGCSE Business Studies. Below is a link to the page which covers the content in this first module and you should begin your studies by watching the introductory video halfway down the page:

WATCH – Understanding Business Activity (CAIE) Links to an external site.

This first topic looks at the reasons why businesses exist, how they add value and why they specialise in the production of certain goods and services.

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Read and work through pages 2 to 5 of your coursebook.

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WATCH - Scarcity, Choice and Opportunity Cost (YouTube) Links to an external site.

WATCH – Specialisation (YouTube) Links to an external site.

WATCH - Adding Value (YouTube) Links to an external site.

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Can you think of and write down three ways in which a business might seek to add value to its product or service?

Now we have looked at the reasons why businesses exist, in the next topic we look at the ways in which businesses can be classified.