Business

• advantage’s of setting up as a sole trader

  1. Owner keeps all profits
  2. it is cheap and easy to setup
  3. financial affairs are kept private
• Definition of partnership

  partnership consists of 2 or more people who jointly own a business
• What is a sleeping partner ?

  Someone who does not do any work other than invest capital
• does a partnership have unlimited or limited liability

  Unlimited Liability
• Advantages of a partnership

  • Additional capital
  • shared responsibility and decision making
  • buisness can carry on if 1 partner is away
  • financial affairs can be private
  • cheap and easy to set up
• Disadvantages of partnership

  • unlimited liability
  • conflict between partners
  • decision making may be slower
• What is unlimited liability?

  where the owner of a business is personally responsible for all debts and liabilities of the business.
• What is limited liability?

  a concept that protects the personal assets of shareholders in a company from being used to pay off the company's debts or liabilities.
• What is a limited company?

  a company owned by its shareholders, run by directors and has a separate legal identity from its owner
• What type of liability does a limited company have ?

  Limited liability
• Who do private limited company sell their shares to ?

  Private limited companies sell their shares to private investors or individuals.
• Who do public limited company sell their shares to ?

  the public on the stock exchange
• main features of a limited company

  Limited liability - the people who invest in the company cannot lose any money other than the money they put into the business

  seperate legal identity - considered in the law to be quite separate from its owners (incorperated)
• Advantages of a private limited company

  1. Large capital avaliable
  2. it has limited liability
  3. separate legal identity
  4. opurtunites for specialization & division of labour
• Disadvantage of private limited company

  1. some financial info must be puplic
  2. shares are not widely available so expansion can be difficult
  3. the process is very involved
• Advantages of a public limited company

  1. limited liability
  2. capital available is large
  3. seperate legal identity
• Disadvantage of a public limited company

  1. Financial info is public
  2. decision making can be hard and slow
  3. lack personal touch
• Definition for a franchise

  A franchise is a system where a successful buisness idea is hired out to other business
• What is a micro buisness

  has 1-9 staff and has turnover of less that 1.7 million
• What is a small buisness

  10-49 staff and less than 5.6 million turnover
• What is medium buisness

  50-249 staff and turnover of less than 22.8 million
• What is a large buisness

  More than 249 staff and greater than 22.8 m
• Definition for social enterprise

  These businesses aim to address social or environmental needs. They make and do things to earn profits which is then used in a different way to other businesses.
• Benefits of social enterprise

  1. The more successful the more society benifits
  2. entrepreneurs can earn a living doing somthing valuable
  3. costumers are more willing to buy from social enterprises
• what does social enterprise do

  1. Provides a sense of community
  2. put their profits back into the community
  3. provide employment for people who have trouble getting a job
• environmental Factors of location

  1. Noise pollution
  2. footfall
  3. close competition
  4. impact on wildlife
• Advantages of locating overseas

  1. Larger market
  2. lower labor cost
  3. lower cost production
• Disadvantages of locating overseas

  1. Laungage and cultural diffrences
  2. lower profits as company may have to cut costs due to increases competition
• Factors that influence location

  1. raw materials
  2. parking/ footfalll- good parking available and heavy footfall
  3. cost- price of land
  4. market- close to costumer and supplier not close to competitors
• What are businesses Aims

  1. Survival
  2. growth
  3. profit
  4. corporate image
• Private sector aims

  1. Create and improve profit
  2. grow and expand
  3. corporate image
• Public sector aims

  1. provide a service
  2. break even
• Social enterprise aims

  1. To contribute to the community
  2. to relieve social problems
• definition for a stake holder


  A stakeholder is any person, group of people or other organisation that has an interest in the activities of a business.
• Who are stakeholders

  1. Employees
  2. owners
  3. shareholders
  4. directors
  5. the community
  6. managers
• Definition for a franchise 


  A franchise is a system we’re a successful business idea is hired out to other businesses
• What is a franchise


  The buisness in loan
• What is a franchisee


  The person who is buying the franchise
• What is a franchiser


  The person who owns the franchise
• Advantages for the franchiser

  1. Expansion without the need of involvment
  2. economics of scale (bulk buying)
  3. recives royalties from each franchise set up