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Business studies - Coggle Diagram
Business studies
Business in the real world
Business ownerships
Partnerships
When two or more people come together in a business enterprise to peruse profit.
Advantages
Shared workload
Share liablitity
More sources of finance can be rased.
More skills as parters can speciolise.
Partners can specialize.
Disadvantages.
May disagree with each other and partners may have different ideas.
Decisions may be slower due to consultaion
Unlimited liability.
Liable for the actions of another partner.
Shared profits.
Private limited company
it is owned by shareholders.
It sells it shares to the general public
Advantages
Can advertise shares to the general public which allows the company to access a larger amount of customers.
PLC's are thought to have more status
The Business can attract more media coverage which can provide cheap publicity.
Investors may be willing to invest as it is easy to sell shares later.
Disadvantages
Increesed media coverage could also be bad for the business if they make a mistake.
They can not control who buys the shares , so managers may find that a compactor buys control of the company and takes it over.
They are more regulated than LTD's , and has more things it most do according to the law.
Must produce a more detailed financial information to send to shareholders which can get in the hands competitors.
The price of shares changes when there is demand for them
Sole traders
when someone sets up a business on their own.
Advantages
You are your own boss.
You can decide things quickly.
Quick and easy to set up
You are able to retain all the profits.
You are able to make your own decisions.
Disadvantages.
Unlimited liability.
May lack finance.
Heavy workload.
Difficult to take a holiday.
May not have the sills required.
Public limited company.
It is owned by shareshp;ders who when the busness started started was owned y the foumders. eventually over time , outside investment from the investors braihgt more funds.
LTD after its name
Advantages
If the founder dies , the business will continue/
Managers can be employed in the day to day running's of the business.
More status and reputation for customers.
limmited liablity
Disadvantages.
A summary of the business's financial documents must be made public.
Accounts must be checked by an auditor which creates additional costs.
Various legal and precidures must be followed to be completed./
Can not advertise to the general public/
Can include certain restrictions (family and freinds.)
Setting aims and objectives.
Aims
The purpose for and Nature of a business.
Purpose of a business.
A business is an organization that produces goods and services.
A business exists to produce goods or supply services that are in demand to for fill the needs and wants of customers , to distribute products , to for fill a business opportunity and to provide goods and services for others in terms of social enterprises.
Goods are defined as the tangible products that a business sells.
Services are defined as the intangible products that a business sells.
A want is not a human necessity that is not vital for survival.
A need is a basic human necessity that is vital for survival.
Reasons for starting a business.
They have a hobby or interest that grows into a business,
They are currently unhappy with their job.
They want to keep all of the profits
They might want to provide a service that helps out others.
They might want to be their own boss.
They have spotted a gap within the market.
They might demand more flexible working hours.
What is an Entrepanure ?
An Entrepreneur is someone who takes on risk upon starting a new business in return for a reward.
Characteristics of a entrepreneur .
Risk takers
In reality , only a few businesses succeed upon opening.
Organized
Running a business involves different skills/
Hard working
Innovative
Good at spotting an opportunity.
Dynamic nature of a business.
Business functions and types.
Human resources.
Responsible for all aspects managing people.
It organizes training
it is apart of recruiting employees.
Manages communication with staff.
Monitors the conditions of employees,
Operations
Organizes the transformation that turns inputs in the form of raw materials into goods or services.
It controls the use of inputs.
It manages the quality of products.
Markeketing
Responsible for understanding the needs of customers,
New product development.
Reaserch into the market.
Ensuring suitable distrubution.
Finance
It manages the financial resources of those business and reports the financial positions and performances,
Responsible for the allocating of finds.
Business planning
Methods of expansion.