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Business Themes 1 ands 2 Mock Revision, thank you - Coggle Diagram

- - - - Identify a vacancy
      - 2. Provide a job Description and Specification. A job description is a document produced by a business that wants to fill a vacancy. It lists all of the duties that are required in the role. A job description may include the job title, rate of pay or salary, bonus information, hours of work, location of work, all duties included in the role and whom the new employee would report to in the business. Whereas a person specification is a document providing information about the type of person the business wants to hire. A person specification includes details about the educational background, skills, experience and hobbies the business wants applicants to have.
      - 3.Advertise
      - 4.Shortlist -This is the process of contacting designated people, usually previous employers or educational establishments to establish whether an applicant will be an ideal fit for the role and the business.
      - 5.Interview - This can either be completed in a group interview with several applicants at once, or as an interview with a single applicant. Interviews may ask questions about experience, skills, qualifications, hobbies, questions about the role and business being applied for and scenario based questions about how an applicant would deal with specific situations.
      - 6.Selection and Appointment - The final stage in the recruitment process is to select and appoint the best candidate.
- - - - Pros
        
        1.No loss of control
        
        2.No interest paid
      - Cons
        
        1.Opportunity cost E.g. dividends
  - - - Pros
        
        1.Usually greater sums of financncce can be generated
      - Cons
        
        2.Lose Control(shares)
        
        1.Pay Interest(debt)
  - - - Overdraft -A business or person uses more money than they have in a bank account. This means the balance is in minus figures, so the bank is owed money. Overdrafts should be used carefully and only in emergencies as they can become expensive due to the high interest rates charged by banks.
      - Family and Friends -Obtain a loan or be given money from family or friends that may not need to be paid back or are paid back with little or no interest charges.
      - Bank Loan -Money borrowed from a bank by an individual or business. A bank loan is paid off with interest over an agreed period of time, often over several years.
      - Venture Capital and Buiness Angels -individual or group that is willing to invest money into a new or growing business in exchange for an agreed share of the profits. The venture capitalist will want a return on their investment as well as input into how the business is run.
      - New Partners - An additional person or people are brought into the business as a new business partner. This means they would provide money to then own part of the business.
      - Share Issue -Sell more of their ordinary shares to raise money.
      - Trade Credit - Allows a business to obtain raw materials and stock but pay for them at a later date. The payment is usually made once the business has had an opportunity to convert the raw materials and stock into products, sell them to its own customers, and receive payment.
      - Leasing -Way of renting an asset that the business requires, such as a coffee machine. Monthly payments are made and the leasing company is responsible for the provision and upkeep of the leased item.
      - Hire Purchase - Used to purchase an asset, such as a delivery van or piece of equipment. A deposit is paid and the remaining amount for the asset is paid in monthly instalments over a set period of time. The business does not own the item until all payments are made.
      - Governments Grants - They are a fixed amount of money awarded by the government. Grants are given to a business on the condition that they meet certain criteria such as providing jobs in areas of high unemployment. These do not usually need to be paid back.They are very rare to come across
    - - Retained profit -when a business makes a profit, it can leave some or all of this money in the business and reinvest it in order to expand.
      - Selling Assets -selling products owned by the business. This may be used when either a business no longer has a use for the product or they need to raise money quickly. Business assets that can be sold include for example, machinery, equipment, and excess stock.
      - Owners capital - money invested by the owner of a business. This often comes from their personal savings. Personal savings is money that has been saved up by an entrepreneur.