3.1 What is a business?

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  • Created by: lara__001
  • Created on: 28-12-18 18:10
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  • 3.1 What is a business?
    • Aim - a long term plan from which business objectives are derived
    • Objective - a target which must be achieved in order to realise the stated aim
      • Business objective - these are the measurable targets of how to achieve business aims
        • SMART - a clearly defined target with points measured: specific, measurable, agreed, realistic, time specific
    • Unlimited liability  - when a business's owner is personally responsible for the debts & liability of the business - a characteristic of a sole trader/ partnership
    • Limited liability - shareholders only lose the vale of their investment, not personally liable for the debts - a characteristic for a Plc & Ltd
    • Revenue - the value of sales made during a trading period. It also includes products sold on credit as well as those sold for cash
    • Variable costs - things that change directly with the level of output of sales, such as the raw materials used to make the product
    • Fixed costs - things that do not change with the level of output or sales, such as rent
    • Cost - is usually a monetary valuation of effort, material, resources,  time and utilities consumed, risks incurred, and opportunity forgone in production and delivery of a good or service
    • Price - how much a product is being sold for
    • Shareholder - an individual or an institution that owns a percentage of a company. They invest in companies to make a profit on their investment
    • Interest rate - the cost of borrowing money or the reward for saving
    • Demography - is the study of the human population

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SarahM00

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There are many answers to this question. It's different for everyone and so as the creator of a website or an application, you have to define your business' purpose and goals, understand your market and customer base, and eventually design your service to serve those needs. Here you can get brookside-cafe.infofor information of Hotles. In this post I'll explain what I believe makes a good business and how you can start creating one right now.

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