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Edexcel A Level Business Paper 3 (9BS0 03) - 6th June 2024 [Exam Chat]

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summary of notes needed for paper 3 based on the pre release with examples 👻https://drive.google.com/file/d/1gUpl78dtJPRg5OXYzBofFU2ndBJ0ghd3/view?usp=sharing
Yeah good shout here from user17122021, gearing is defo gonna come up. I would spend 1-2 hours tonight on it. Make sure you get it dialled in!
Guys, just remember that whatever came up in papers 1 & 2 is even more likely to come up now! The exam board try to trick us guys. Dont fall for it!
Original post by danielbenentt
Guys, just remember that whatever came up in papers 1 & 2 is even more likely to come up now! The exam board try to trick us guys. Dont fall for it!

so what is gonna come up, is someone able to put out everything predicted to come up please
Original post by vinylcryes__
so what is gonna come up, is someone able to put out everything predicted to come up please

I would revise internal and external sources of finance, remember to look over the benefits of shutting down a business, manager and employee welfare, Transfer payments, The trade cycle, and negative externalities
Original post by LittleLolita
7 Apr 2024 at 03_18.jpg

is this for paper 3 edexcel?
Original post by willing-import
is this for paper 3 edexcel?

Nah, its for paper 1, for those who are resitting the exam tomorrow.
I had to miss paper 2 due to illness (very annoying) could somebody let me know the key topics that came up please? I know there's still a chance of them reappearing in paper 3 but would just be handy to know.
Original post by niamhohearne
I had to miss paper 2 due to illness (very annoying) could somebody let me know the key topics that came up please? I know there's still a chance of them reappearing in paper 3 but would just be handy to know.

I would tell you the topics, but seeing as you missed the paper it would be illegal to... I cant share protected information!! (also if you really missed a paper you are going to struggle to get above a D)
Original post by danielbenentt
I would tell you the topics, but seeing as you missed the paper it would be illegal to... I cant share protected information!! (also if you really missed a paper you are going to struggle to get above a D)

Oh I didn't realise that. My school said they make a prediction from papers 1 and 3 and that would be your grade for paper 2?
Original post by niamhohearne
Oh I didn't realise that. My school said they make a prediction from papers 1 and 3 and that would be your grade for paper 2?
You might do, idk i wish you the best of luck anways
Original post by danielbenentt
I would revise internal and external sources of finance, remember to look over the benefits of shutting down a business, manager and employee welfare, Transfer payments, The trade cycle, and negative externalities

ive collected some stuff together on this, would anyone like me to post a detailed summary of it for easy access?
Original post by vinylcryes__
ive collected some stuff together on this, would anyone like me to post a detailed summary of it for easy access?

yes thanks that would be so helpful if u had a link to access!
Original post by danielbenentt
I would tell you the topics, but seeing as you missed the paper it would be illegal to... I cant share protected information!! (also if you really missed a paper you are going to struggle to get above a D)

are we not allowed to say what's been on the papers? I swear the teachers get access to the papers straight after the exam is over or at least a week after
Original post by vinylcryes__
ive collected some stuff together on this, would anyone like me to post a detailed summary of it for easy access?

oh please yes. Really need to go over externalities
Original post by danielbenentt
oh please yes. Really need to go over externalities

Internal Sources of Finance

1. Retained Earnings
- Definition: Profits that the business has kept after paying dividends.
- Benefits:
- No interest or repayment obligations.
- Indicates a healthy business with consistent profits.
- Limitations:
- Dependent on profitability.
- May be insufficient for large-scale investments.
2. Sale of Assets
- Definition: Selling off company-owned assets such as machinery, property, or vehicles.
- Benefits:
- Quick access to cash.
- Can offload underutilized or obsolete assets.
- Limitations:
- Reduces the asset base of the business.
- May not fetch the expected value.
3. Personal Savings
- **Definition**: Funds invested by the business owner from their own savings.
- Benefits:
- No interest payments or loss of control.
- Demonstrates the owner’s commitment to the business.
- Limitations:
- Limited by the owner’s personal savings.
- High personal financial risk.
4. Working Capital Management
- Definition: Optimizing the management of current assets and liabilities.
- Benefits:
- Improved liquidity and cash flow.
- Can reduce the need for external borrowing.
- Limitations:
- Requires effective financial management.
- May not always provide significant funds.

External Sources of Finance

1. Bank Loans
- Definition: Borrowing a fixed amount from a bank with an agreement to repay over a specified period.
- Benefits:
- Provides large amounts of capital.
- Structured repayment terms.
- Limitations:
- Interest payments increase costs.
- Requires collateral and creditworthiness.
2. Overdrafts
- Definition: A facility that allows businesses to withdraw more money than they have in their bank account up to an agreed limit.
- Benefits:
- Flexible short-term funding.
- Interest is only paid on the overdrawn amount.
- Limitations:
- Higher interest rates than loans.
- Can be withdrawn by the bank at short notice.
3. Trade Credit
- **Definition**: Deferred payment terms provided by suppliers.
- Benefits:
- Improves cash flow by delaying payment.
- Often interest-free.
- Limitations:
- Depends on supplier terms.
- Over-reliance can strain supplier relationships.
4. Venture Capital
- Definition: Venture Capital is a form of "risk capital". In other words, capital that is invested in a project (in this case - a business) where there is a substantial element of risk relating to the future creation of profits and cash flows.
- Benefits:
- Access to large amounts of capital and expertise.
- No repayment obligation.
- Limitations:
- Dilution of ownership and control.
- High expectations for growth and return on investment.
5. Equity Financing
- Definition: Raising capital by selling shares of the company.
- Benefits:
- No repayment or interest obligations.
- Can raise substantial funds.
- Limitations:
- Dilutes ownership and control.
- Shareholders expect dividends and growth.
Benefits of Shutting Down a Business
Shutting down a business can be a difficult decision, but it can offer several benefits in certain circumstances:
1. Financial Relief
- Ceasing operations can stop financial losses and reduce the burden of debt.
2. Resource Reallocation
- Resources such as capital and labour can be redirected to more profitable ventures.
3. Personal Well-being
- Reducing stress and avoiding prolonged financial strain can improve the personal well-being of the owner and employees.
4. Legal Protection
- Formal shutdowns through bankruptcy can offer legal protection against creditors.

Manager and Employee Welfare

1. Work-life Balance
- Ensuring manageable workloads and flexible working conditions can improve overall well-being and job satisfaction.
2. Health and Safety
- Providing a safe work environment and health benefits can reduce absenteeism and improve productivity.
3. Career Development
- Offering training and development opportunities can boost morale and reduce turnover.
4. Recognition and Rewards
- Recognizing achievements and providing incentives can enhance motivation and loyalty.

Transfer Payments

Definition: Payments made by the government to individuals without any goods or services being received in return.
Examples: Social security benefits, unemployment benefits, and welfare payments.
Impact on Business:
- Can increase consumer spending by providing financial support to individuals.
- May reduce the need for businesses to provide extensive welfare benefits.

The Trade Cycle

Definition: The business/trade cycle is a pattern of fluctuations in economic activity, characterized by periods of growth (expansions), followed by periods of contraction (recessions).
Impact on Business:
- During expansions, businesses may experience increased demand and profits.
- During contractions, businesses may face reduced demand, cost-cutting pressures, and potential layoffs.
Strategies:
- Diversify products and markets to mitigate the impact of economic cycles.
- Maintain flexible operations to adapt to changing economic conditions.

Negative Externalities

Definition: Unintended and adverse side effects of business activities on third parties.
Examples: Pollution, noise, and environmental degradation.
Impact on Business:
- Can lead to regulatory fines and increased operational costs.
- Damage to reputation and potential loss of customers.
Mitigation Strategies:
- Investing in sustainable practices and technologies.
- Engaging in corporate social responsibility (CSR) initiatives to improve community relations and reduce negative impacts.

Let me know if ive missed anything i tried to summarise but still keeping detail :smile:
Original post by vinylcryes__
Internal Sources of Finance
1. Retained Earnings
- Definition: Profits that the business has kept after paying dividends.
- Benefits:
- No interest or repayment obligations.
- Indicates a healthy business with consistent profits.
- Limitations:
- Dependent on profitability.
- May be insufficient for large-scale investments.
2. Sale of Assets
- Definition: Selling off company-owned assets such as machinery, property, or vehicles.
- Benefits:
- Quick access to cash.
- Can offload underutilized or obsolete assets.
- Limitations:
- Reduces the asset base of the business.
- May not fetch the expected value.
3. Personal Savings
- **Definition**: Funds invested by the business owner from their own savings.
- Benefits:
- No interest payments or loss of control.
- Demonstrates the owner’s commitment to the business.
- Limitations:
- Limited by the owner’s personal savings.
- High personal financial risk.
4. Working Capital Management
- Definition: Optimizing the management of current assets and liabilities.
- Benefits:
- Improved liquidity and cash flow.
- Can reduce the need for external borrowing.
- Limitations:
- Requires effective financial management.
- May not always provide significant funds.
External Sources of Finance
1. Bank Loans
- Definition: Borrowing a fixed amount from a bank with an agreement to repay over a specified period.
- Benefits:
- Provides large amounts of capital.
- Structured repayment terms.
- Limitations:
- Interest payments increase costs.
- Requires collateral and creditworthiness.
2. Overdrafts
- Definition: A facility that allows businesses to withdraw more money than they have in their bank account up to an agreed limit.
- Benefits:
- Flexible short-term funding.
- Interest is only paid on the overdrawn amount.
- Limitations:
- Higher interest rates than loans.
- Can be withdrawn by the bank at short notice.
3. Trade Credit
- **Definition**: Deferred payment terms provided by suppliers.
- Benefits:
- Improves cash flow by delaying payment.
- Often interest-free.
- Limitations:
- Depends on supplier terms.
- Over-reliance can strain supplier relationships.
4. Venture Capital
- Definition: Venture Capital is a form of "risk capital". In other words, capital that is invested in a project (in this case - a business) where there is a substantial element of risk relating to the future creation of profits and cash flows.
- Benefits:
- Access to large amounts of capital and expertise.
- No repayment obligation.
- Limitations:
- Dilution of ownership and control.
- High expectations for growth and return on investment.
5. Equity Financing
- Definition: Raising capital by selling shares of the company.
- Benefits:
- No repayment or interest obligations.
- Can raise substantial funds.
- Limitations:
- Dilutes ownership and control.
- Shareholders expect dividends and growth.
Benefits of Shutting Down a Business
Shutting down a business can be a difficult decision, but it can offer several benefits in certain circumstances:
1. Financial Relief
- Ceasing operations can stop financial losses and reduce the burden of debt.
2. Resource Reallocation
- Resources such as capital and labour can be redirected to more profitable ventures.
3. Personal Well-being
- Reducing stress and avoiding prolonged financial strain can improve the personal well-being of the owner and employees.
4. Legal Protection
- Formal shutdowns through bankruptcy can offer legal protection against creditors.
Manager and Employee Welfare
1. Work-life Balance
- Ensuring manageable workloads and flexible working conditions can improve overall well-being and job satisfaction.
2. Health and Safety
- Providing a safe work environment and health benefits can reduce absenteeism and improve productivity.
3. Career Development
- Offering training and development opportunities can boost morale and reduce turnover.
4. Recognition and Rewards
- Recognizing achievements and providing incentives can enhance motivation and loyalty.
Transfer Payments
Definition: Payments made by the government to individuals without any goods or services being received in return.
Examples: Social security benefits, unemployment benefits, and welfare payments.
Impact on Business:
- Can increase consumer spending by providing financial support to individuals.
- May reduce the need for businesses to provide extensive welfare benefits.
The Trade Cycle
Definition: The business/trade cycle is a pattern of fluctuations in economic activity, characterized by periods of growth (expansions), followed by periods of contraction (recessions).
Impact on Business:
- During expansions, businesses may experience increased demand and profits.
- During contractions, businesses may face reduced demand, cost-cutting pressures, and potential layoffs.
Strategies:
- Diversify products and markets to mitigate the impact of economic cycles.
- Maintain flexible operations to adapt to changing economic conditions.
Negative Externalities
Definition: Unintended and adverse side effects of business activities on third parties.
Examples: Pollution, noise, and environmental degradation.
Impact on Business:
- Can lead to regulatory fines and increased operational costs.
- Damage to reputation and potential loss of customers.
Mitigation Strategies:
- Investing in sustainable practices and technologies.
- Engaging in corporate social responsibility (CSR) initiatives to improve community relations and reduce negative impacts.
Let me know if ive missed anything i tried to summarise but still keeping detail :smile:

Please can you also go over labour markets and government intervention along with pricing strategies. Thank you so much this is really helpful. Thanks for taking the time to do this
Original post by danielbenentt
Please can you also go over labour markets and government intervention along with pricing strategies. Thank you so much this is really helpful. Thanks for taking the time to do this
Labour Markets

Definition
The labour market is the arena in which employers seek to hire workers and workers look for jobs. It involves the supply of labour (workers) and the demand for labour (employers).

Characteristics
1. Demand for Labour:
- Determined by the productivity and profitability of workers.
- Influenced by economic conditions, industry growth, and technological advancements.
2. Supply of Labour:
- Influenced by factors such as population demographics, education and skill levels, and worker preferences.
3. Wages and Salaries:
- Set by the equilibrium between labour supply and demand.
- Can be influenced by minimum wage laws, union activities, and employer policies.

Trends in Labour Markets
1. Globalization:
- Increased competition for jobs as businesses can hire from a global talent pool.
- Outsourcing and offshoring of jobs to countries with lower labour costs.
2. Technological Change:
- Automation and AI are changing the demand for certain skills, leading to job displacement in some sectors and growth in others.
- Rise of gig economy and flexible working arrangements.
3. Skill Mismatch:
- A gap between the skills workers possess and the skills employers need.
- Need for continuous education and retraining.

Impact on the Clothing Industry
1. Seasonal and Part-Time Employment:
- High reliance on seasonal and part-time workers, especially in retail.
- Can lead to job insecurity and lower wages.
2. Labour Costs:
- Significant impact on pricing and competitiveness.
- Businesses may seek to reduce costs through automation or outsourcing.
3. Employee Welfare:
- Importance of fair wages, working conditions, and opportunities for advancement.
- Ethical considerations can influence consumer perception and brand reputation.

Government Intervention

Definition
Government intervention involves actions taken by a government to influence the economy, including regulations, taxes, subsidies, and monetary policies.

Types of Government Intervention
1. Regulations:
- Laws governing minimum wage, working conditions, environmental standards, and consumer protection.
- Aim to protect workers, consumers, and the environment but can increase operational costs for businesses.
2. Taxes and Subsidies:
- Taxes on income, profits, and goods/services influence business decisions and consumer behaviour.
- Subsidies can support industries, encourage investment, and reduce costs for consumers.
3. Monetary Policy:
- Central banks control money supply and interest rates to manage economic stability.
- Low interest rates can encourage borrowing and investment; high rates can reduce inflation.
4. Fiscal Policy:
- Government spending and taxation decisions aimed at influencing economic activity.
- Can stimulate growth during recessions or cool down an overheating economy.
Impact on the Clothing Industry
1. Labour Regulations:
- Compliance with minimum wage laws and health and safety standards is crucial.
- Can impact labour costs and operational efficiency.
2. Trade Policies:
- Tariffs, quotas, and trade agreements affect the cost and availability of imported materials and finished goods.
- Trade protectionism can shield domestic industries but may lead to higher prices and reduced variety for consumers.
3. Environmental Regulations:
- Impact on production processes, waste management, and resource usage.
- Growing importance of sustainability and corporate social responsibility (CSR).
4. Consumer Protection Laws:
- Regulations on product safety, quality, and labelling.
- Ensures consumer trust and can differentiate brands based on compliance and transparency.

Pricing Strategies

Definition
Pricing strategies are approaches businesses use to set the prices of their products or services, balancing profitability with market demand.

Types of Pricing Strategies
1. Cost-Plus Pricing:
- Setting prices based on the cost of production plus a fixed profit margin.
- Simple to calculate but may not consider market conditions or competitor prices.
2. Penetration Pricing:
- Setting a low initial price to attract customers and gain market share.
- Useful for new market entrants but can lead to low profit margins initially.
3. Skimming Pricing:
- Setting a high price initially to target early adopters, then gradually lowering it.
- Effective for innovative or premium products but may limit broader market adoption early on.
4. Competitive Pricing:
- Setting prices based on competitor prices.
- Ensures competitiveness but may trigger price wars.
5. Value-Based Pricing:
- Setting prices based on perceived value to the customer rather than cost.
- Can lead to higher profit margins if customers recognize and are willing to pay for added value.
6. Dynamic Pricing:
- Adjusting prices based on real-time demand and supply conditions.
- Common in industries with fluctuating demand but can alienate customers if perceived as unfair.

Impact on the Clothing Industry

1. Fast Fashion:
- Emphasis on low-cost, trendy clothing leads to aggressive cost-cutting and competitive pricing strategies.
- Reliance on economies of scale and efficient supply chains to maintain low prices.
2. Premium Brands:
- Focus on quality, exclusivity, and brand image allows for higher pricing strategies.
- Value-based pricing is common, leveraging brand reputation and perceived luxury.
3. Discount Retailers:
- Use penetration and competitive pricing to attract price-sensitive consumers.
- Often rely on high sales volumes to achieve profitability.
4. E-commerce:
- Dynamic pricing is more prevalent online, with algorithms adjusting prices based on demand, inventory levels, and competitor prices.
- Price transparency online requires competitive pricing to attract and retain customers.
Original post by vinylcryes__
Labour Markets
Definition
The labour market is the arena in which employers seek to hire workers and workers look for jobs. It involves the supply of labour (workers) and the demand for labour (employers).
Characteristics
1. Demand for Labour:
- Determined by the productivity and profitability of workers.
- Influenced by economic conditions, industry growth, and technological advancements.
2. Supply of Labour:
- Influenced by factors such as population demographics, education and skill levels, and worker preferences.
3. Wages and Salaries:
- Set by the equilibrium between labour supply and demand.
- Can be influenced by minimum wage laws, union activities, and employer policies.
Trends in Labour Markets
1. Globalization:
- Increased competition for jobs as businesses can hire from a global talent pool.
- Outsourcing and offshoring of jobs to countries with lower labour costs.
2. Technological Change:
- Automation and AI are changing the demand for certain skills, leading to job displacement in some sectors and growth in others.
- Rise of gig economy and flexible working arrangements.
3. Skill Mismatch:
- A gap between the skills workers possess and the skills employers need.
- Need for continuous education and retraining.
Impact on the Clothing Industry
1. Seasonal and Part-Time Employment:
- High reliance on seasonal and part-time workers, especially in retail.
- Can lead to job insecurity and lower wages.
2. Labour Costs:
- Significant impact on pricing and competitiveness.
- Businesses may seek to reduce costs through automation or outsourcing.
3. Employee Welfare:
- Importance of fair wages, working conditions, and opportunities for advancement.
- Ethical considerations can influence consumer perception and brand reputation.
Government Intervention
Definition
Government intervention involves actions taken by a government to influence the economy, including regulations, taxes, subsidies, and monetary policies.
Types of Government Intervention
1. Regulations:
- Laws governing minimum wage, working conditions, environmental standards, and consumer protection.
- Aim to protect workers, consumers, and the environment but can increase operational costs for businesses.
2. Taxes and Subsidies:
- Taxes on income, profits, and goods/services influence business decisions and consumer behaviour.
- Subsidies can support industries, encourage investment, and reduce costs for consumers.
3. Monetary Policy:
- Central banks control money supply and interest rates to manage economic stability.
- Low interest rates can encourage borrowing and investment; high rates can reduce inflation.
4. Fiscal Policy:
- Government spending and taxation decisions aimed at influencing economic activity.
- Can stimulate growth during recessions or cool down an overheating economy.
Impact on the Clothing Industry
1. Labour Regulations:
- Compliance with minimum wage laws and health and safety standards is crucial.
- Can impact labour costs and operational efficiency.
2. Trade Policies:
- Tariffs, quotas, and trade agreements affect the cost and availability of imported materials and finished goods.
- Trade protectionism can shield domestic industries but may lead to higher prices and reduced variety for consumers.
3. Environmental Regulations:
- Impact on production processes, waste management, and resource usage.
- Growing importance of sustainability and corporate social responsibility (CSR).
4. Consumer Protection Laws:
- Regulations on product safety, quality, and labelling.
- Ensures consumer trust and can differentiate brands based on compliance and transparency.
Pricing Strategies
Definition
Pricing strategies are approaches businesses use to set the prices of their products or services, balancing profitability with market demand.
Types of Pricing Strategies
1. Cost-Plus Pricing:
- Setting prices based on the cost of production plus a fixed profit margin.
- Simple to calculate but may not consider market conditions or competitor prices.
2. Penetration Pricing:
- Setting a low initial price to attract customers and gain market share.
- Useful for new market entrants but can lead to low profit margins initially.
3. Skimming Pricing:
- Setting a high price initially to target early adopters, then gradually lowering it.
- Effective for innovative or premium products but may limit broader market adoption early on.
4. Competitive Pricing:
- Setting prices based on competitor prices.
- Ensures competitiveness but may trigger price wars.
5. Value-Based Pricing:
- Setting prices based on perceived value to the customer rather than cost.
- Can lead to higher profit margins if customers recognize and are willing to pay for added value.
6. Dynamic Pricing:
- Adjusting prices based on real-time demand and supply conditions.
- Common in industries with fluctuating demand but can alienate customers if perceived as unfair.
Impact on the Clothing Industry
1. Fast Fashion:
- Emphasis on low-cost, trendy clothing leads to aggressive cost-cutting and competitive pricing strategies.
- Reliance on economies of scale and efficient supply chains to maintain low prices.
2. Premium Brands:
- Focus on quality, exclusivity, and brand image allows for higher pricing strategies.
- Value-based pricing is common, leveraging brand reputation and perceived luxury.
3. Discount Retailers:
- Use penetration and competitive pricing to attract price-sensitive consumers.
- Often rely on high sales volumes to achieve profitability.
4. E-commerce:
- Dynamic pricing is more prevalent online, with algorithms adjusting prices based on demand, inventory levels, and competitor prices.
- Price transparency online requires competitive pricing to attract and retain customers.

How do you know all this information?? Can you do intergration of john pork along with PED and PES, thank u so much
Original post by danielbenentt
How do you know all this information?? Can you do intergration of john pork along with PED and PES, thank u so much

i just take everything ive been taught in school, compiled it into notes and then summarise the notes as best i can into a guide! im afraid i dont know john pork but i can certainly do PED, YED and PES

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