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Business Study's Unit 1 (Setting up a business (Starting a Business…
Business Study's Unit 1
Setting up a business
Business plan
choosing a business structure
Setting up a business aims and objectives
choosing a legal stucture
Starting a Business Enterprise
A Franchise is a business were the franchiser
sells its name and products to the franchise in return for a start up cost and a termly fee.
Advantages for franchie
experienced help
brand name
Disadvantages
High cost
little controle
Advantages for franchise
Little work for high redraw
Little responsibility
regular payments
fast inorganic growth
Disadvantages for franchise
Little control
Hard to maintain goals
A sole trader is a business owner who has complete control
of there company but it is hard to get a loan. they also have liable for company..
A partnership is a group of owners from 2-20 who own the business between them
Public limited company are business where only family and friends can by shares as well they have limited liability.
A private limited company is a business were anybody can by shares as well they have limited liability
choosing a location
conducting market resurch
marketing mix- This tells us the point in a products life and if it liquid.
star- A old business which is highly profitable
Problem child- a young business whichis makeing small profit
dog- a old business which isn't making
a small profit and should be cut
Cash cow- this tell us that the business is
succure and is profitable
Finance- this is the most import aspect of a business if a business has no finance it will fail
Internal finance
saving- businesses have stored finances for bad situations
Profit- businesses make profit to be interested in the company
assets- things that businesses own which can be
sold for finance
external finance
long term
owner of the business can sell shares
Loans from a bank or from family and friends.
Debentures are loans made to a company.
A mortgage, which is a special type of loan for buying property where monthly payments are spread over a number of years.
Grants from charities or the government to help businesses get started, especially in areas of high unemployment.
sort term
Trade credits, where suppliers deliver goods now and are willing to wait for a number of days before payment.
Factoring, where firms sell their invoices to a factor such as a bank. They do this for some cash right away, rather than waiting 28 days to be paid the full amount.
An overdraft facility, where a bank allows a firm to take out more money than it has in its bank account.
Motivation
Motivation
Nonand pay fina
Providing services
Customer services
Manufacturing services
customer protection
Requirement