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Revision - Coggle Diagram

- - - - think of this as the natural resources that are used by the business – e.g. actual land, energy, and other natural resources
    - - the time and effort of people involved in the business: employees, suppliers etc
    - - apital includes physical assets such as machinery, computers, transport which are used during production. Capital can also include finance – the investment that is required in order for the business activities to take place.
    - - enterprise is the entrepreneurial "fairy-dust" that brings together or organises the other inputs. The entrepreneur takes the decisions about how much capital, what kind of labour etc and how & when they are needed in the business.
  - - - Goods are the actual object.
      - They can be touched, felt, and held.
  - - - this is involved in the extraction and production of raw materials, such as coal, wood, and steel. Coal miner and Fisherman would be workers in the primary sectors
        
        These are natural resources that can be used to make products or provide services.
    - - This involves the transformation of the raw materials into goods. for example, manufacturing steel in ti car. A builder and a dressmaker would-be workers
    - - this involves the provision of services to consumers and businesses, such as cinema and banking. A shop keeper and an accountant would-be workers
- - - - Cost which do not change in relation to output
        
        Example include
        
        Rent & rates
        
        Salaries
        
        Advertising
        
        Insurance, banking & legal fees
  - - - Examples include:
        
        Raw materials
        
        pacakaging
- - - - Private limited company(LTD)
        
        Seperate legal identify from owners
        
        Disadvantage
        
        -Smaller resouces - Lack of public confidence
        
        Advantage
        
        -Limited liability - Builid credibility
      - Public limited comapny（PLC）
        
        It is able to offer its share to the public
        
        Advantage
        
        reproduction in personal liability - Improving branding and prestige
        
        Disadvantage
        
        High cost
  - - - Sole trader
        
        -It is an individual owning the business on his/her own. - It can also employ people but into those employees don not share into the ownership of the business.
        
        Advantage
        
        -Keep own profit they make for themselves. - Start up cost is low. - Be own boss
        
        Disadvantage
        
        -Limited funding capacity. - Unlimited liability. - Make all decision can be stressful
        
        Partnership
        
        A partnership is a for-profit business organization composed of two or more people. Each partner directly shares the profits of the organization and shares the control of business operations.
        
        Advantage
        
        -Can share ideas. - Share finance - Cost low
        
        Disadvantage
        
        -Profit share - Lack stability
- - - - For Franchisee
        
        The franchisee is given support by the franchisor. This includes marketing and staff training. So starting a business in this way requires less expertise and is less lonely!
        
        A franchise allows people to start and run their own business with less risk. The chance of failure among new franchises is lower as their product is a proven success and has a secure place in the market
      - For Franchisor
        
        a classic growth strategy for a proven business format
        
        Still have the option to open locations that are operated by the Franchisor
    - - For Franchisee
        
        Cost to buy franchise – can be very expensive (hundreds of thousands of pounds).
        
        Have to pay a percentage of your revenue to the business you have bought the franchiser from.