3.1
- Created by: Tashie7
- Created on: 01-05-16 13:10
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- 3.1- Business
- A business is an organisation that is involved in any organised form of trade, industrial or professional activities and exist in order to achieve objectives such as profit, growth and survival.
- A business's objectives should be SMART.
- Forms of business
- Sole Trader: An individual who owns and runs their own business.
- Cheap and easy to set up, owner receives all profits and finance records are private.
- Unlimited liability, limited capital for investment and jack of all trades.
- Private Limited Company: is own by shareholders known to the company therefore cannot sell shares openly on the stock market.
- Can't be taken over, finances are private and more capital can be raised through shares.
- Shareholders are locked in, more complex to set up due to legal requirements and loss of control due to shareholder voting rights.
- Public Limited Companies: shares are sold to the public via the stock exchange.
- Able to sell shares for money which could be used to expand the business.
- Risk of a hostile takeover, public are able to access finance accounts and loss of control.
- Sole Trader: An individual who owns and runs their own business.
- Shareholders
- Investors who are part owners of a company
- Limited in liability to the amount invested or promised
- Able to receive dividends in return for investment
- Invited to AGM where they have a proportional voting right.
- Shareprice
- Infleunces
- Global and national economy
- Investor confidence
- Political stabliity
- Company performance
- Significance
- Indication of manager's performance
- Influences stakeholders
- Effects ability to raise finance from other sources
- Will be watched carefully by competitors
- Will effect consumer confidence
- Infleunces
- Mission statement and objectives.
- A mission statement is a brief written statement of the purpose of a company of organisation
- It ideally guides the action of an organisation, spells out its overall goals and provides a sense of direction for all levels of management and decision making.
- The prime aim or objective will vary depending on the business form and nature of the business. For example, whether they are a charity or a progfitable organisation
- A mission statement is a brief written statement of the purpose of a company of organisation
- The external environment and its affects
- The external environment will affect costs and demand.
- The external environment includes competition, interest rates, market conditions and incomes
- Forming a company who controls it?
- Memorandum of Assocsiations
- Articles of association
- Register with Registrar of Companies at Company House
- Draw up associations
- Obtain a certificate of Incorporation from the Companies Registrar
- A business is an organisation that is involved in any organised form of trade, industrial or professional activities and exist in order to achieve objectives such as profit, growth and survival.
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