Business and the Economic Environment

Course Description

The aim of this unit is to introduce learners to the interaction between the general economic environment and business activity. Learners will gain the underpinning knowledge to recognise the components and construct of the business sector and examine the fundamental factors which influence how a business operates within the context of its internal and external business environment.

Course Objectives

The aim of this unit is to introduce learners to the interaction between the general economic environment and business activity. Learners will gain the underpinning knowledge to recognise the components and construct of the business sector and examine the fundamental factors which influence how a business operates within the context of its internal and external business environment.

Key Topics

1. LO1: Understand different types of businesses.
2. LO2: Understand the influence of the internal and external environment on a business.
3. LO3: Understand how macro-economic factors impact a business.
4. LO4: Understand how micro-economics factors impact on a business.

Course Outline

Learning Outcomes

1. LO1 Understand different types of businesses.
2. 1.1 Explain the different types of business sectors.
3. 1.2 Compare different types of businesses.
4. 1.3 Explain the advantages and disadvantages of different organisational structures.
5. 1.4 Explain the financial reporting requirements for different types of business.
6. LO2 Understand the influence of the internal and external environment on a business.
7. 2.1 Assess the needs, interests and influence of a business’ stakeholders.
8. 2.2 Explain the features and influence of globalisation on a business.
9. 2.3 Apply a technique to assess the internal environment of a business.
10. 2.4 Apply a technique to assess the external environment of a business.
11. LO3 Understand how macro-economic factors impact a business.
12. 3.1 Compare key macro-economic factors.
13. 3.2 Describe the key components of aggregate demand.
14. 3.3 Explain the term ‘circular flow of income.’
15. 3.4 Discuss how changes in aggregate demand in the economy impact on the level of economic activity of a business.
16. LO4 Understand how micro-economics factors impact on a business.
17. 4.1 Compare key micro-economic factors.
18. 4.2 Explain how prices are determined in a perfectly competitive market.
19. 4.3 Explain how changes in the conditions of supply and demand influence equilibrium price.
20. 4.4 Explain how imperfect markets can have an impact on the level of output and prices charged by a business.