Business GCSE

• Partnership advantages and disadvantages 


  Adv: Low start up costs, each partner will bring in different speciality skills, Workload can be shared, easier to raise finance than sole trader

  Disadv: Unlimited liability, May be disagreements between partners slowing down decision making, partners have less control than sole trader
• Deed of partnerships


  Document setting out the operations of a partnership, including amount of capital to be invested, how profits will be shared, role of each partner,
• private limited company 


  Adv: Limited liability, finance can be raised by selling shares, Control over share sale

  Disadv: profits have to be given to shareholders in the form of dividends, Business has to publish accounts every year meaning everyone can see their financial state, Cannot sell as many shares as PLC, higher set up costs
• Public limited company 


  Adv: Limited liability, Finance can be raised by selling shares on stock exchange, business is run by board of directors who normally have experience

  Disadv: Profits have to be given to shareholders in form of dividends, business has to publish its accounts every year, threat of takeover
• Business aims and objectives

  Main objectives : To survive, to make a profit, to expand, market share, providing a service
• Why should a business set objectives

  So that all employees are working towards a common goal.

  To help measure success of a business at the end of the year.

  So that employees can be given clear and relevant targets ( employee motivation)
• Stakeholder groups


  People who have an interest in a business

  Employees - If a business does well employees may benefit from a pay rise, bonus, promotion and better job security. Conversely if a business shuts down they may lose their job. Employees can affect a business by taking industrial action if they have not been treated well

  Customers - If business puts price up too high customers cannot afford to buy as much. Customers can boycott a business which damages sales revenue
• Stakeholder groups 


  Suppliers - If a business does well, they will usually need to buy more stock increasing revenue for suppliers, as a business grows they may receive better credit terms. Suppliers can refuse to supply businesses that do not pay them promptly

  Government - Receive tax on business profits, also as a business they employ more workers which reduces unemployment. Government can have a big impact by introducing new laws and increasing national minimum wage
• Stakeholder groups 


  Local community - Businesses can affect local residents positively by providing goods and services as well as jobs. Locals can protest against a business in order to prevent them from doing something e.g pollution

  Owners - If business is successful, owners are rewarded with a share of the profits, if business fails owner risks losing their investment. Owners usually have a large influence over the business as they have a say in how its run