business

• primary 


  the primary sector of industry involves business that extract natural goods out of the earth
• secondary 


  in the secondary sector of businesses are involved in making things (manufactoring)
• tertiary 


  businesses provide a service
• quaternary 


  provide information services such as advice
• private 


  profit making firms
• public 


  owned by the government
• third 


  non-profit making firms
• aims of private 


  maximise profit

  expansion
• aims of public 


  provide the best service

  stay within budget
• aims of third 


  promote and support a worthy cause

  maximise donations
• private sector org 


  a company who sells a % of their business to family or friends for a profit

  shares are not available to buy on the public stock market

  minimum of one shareholder
• public limited company 


  a company who sells a % of ownership on the public stock market

  minimum of two shareholders
• both (public and private orgs)

  owned by shareholders

  controlled by directors

  both limited liability
• advantages of ltd 


  finance can be raised from selling ownership - unlike bank loan no debt or interest

  control of the company is not lost to outsiders -shares not sold on stock market decision making is not diluted to randoms

  limited liability- lose only what they have invested not personal assets
• disadvantages of ltd 


  profits are shared amongst more people (shareholders)

  shares cant be sold on the public stock market- limits finance available

  must abide by the company's act - must produce annual accounts which can be viewed by competitors
• public limited company advantages 


  large amounts of finance can be raised from selling shares on the stock market - no debt no interest

  easier to borrow funds from lenders - limited liability and large size a plc is seen as less risky

  limited liability- only lose what they invest in
• public sector org 


  owned by the gov

  run by a board of Councillors, appointed by the gov

  aim to provide the best service for the state
• multinationals features 


  has a home base

  often has a global brand

  large budgets

  strong influence on economies
• benefits of multinationals 


  larger market that allows for increased sales and different target markets

  closer to the source of raw materials reduced transport costs

  access to cheaper raw materials

  explotation of local resources ( lower labor costs)

  may reduce risk ( if a country enters recession)

  greater global demand allows for economies of scale

  may be given a government grants and incentives to locate in a country
• disadvantages of multinationals 


  consumers more aware of ethical behaviour- tax avoidance methods

  exchange rate uncertenty

  lanuguage barriers can impact communication

  increased competition
• corporate social responsibility (csr)


  is beyond the requirement of the law
• csr- employment 


  treat your staff well ( above national wage)

  employ older people and offer working practices to support them

  equality measures
• csr- enviroments 


  selling sustainable goods- fair trade

  recycling using less packaging and reduce firms carbon foot print

  eco friendly production methods and renewable energy
• csr- community 


  donations to charity

  engagement with local schools to advance education
• internal business objectives 


  improve obsenteeism figures

  stay within budget

  improve staff morale

  increase productivity

  meet company objectives