chapter 1 business organisation

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  • chapter 1
    • a plc stands for public limited company
      • owned by a shareholder
        • shares can be brought by anyone
      • more expensive to set up
        • business will have to be making enough profit to pay for it
          • they have to make sure that they will still be making sales after the conversion
            • to make sure they don't go into bankrupcy
              • if they go into bankrupcy the business will be shut down
      • it is easier to borrow money from banks
        • this is because a bank knows they will be able to pay the money back
          • meaning if they needed a loan they could have one
    • expanding a business
      • as a business grows it will often change its aims/ objectives to expaning their business to reach a mass market
      • they might not be able to keep up with competitors
        • they might loose customers to competitors
          • loosing out on sales
            • they will not be making enough sales revenue
              • this can lead to bankrupcy
      • they can gain more recognition
        • this means you can gain more customers
          • meaning you can make more sales
            • eventually leading to more sales revenue
    • franchises
      • a franchise occours when one business gives rights to another business to sell their products
      • the franchisor  gets royaltys
        • meaning that the franchiee has to pay a share of their profits to the franchisor
          • meaning that the franchisor is making more profit
      • the original entreprenur no longer owns the entire business
        • meaning that any desicions have to be made between both of the owners
          • meaning control of the business could be lost
    • ethical considerations
      • gives a good image
        • meaning you are keeping your customers happy
          • this means they will keep returning to the business
            • meaning you are going to be making more sales and therefore more revenue
      • this is going to cost money to become ethical
        • you have to make sure that you have the money there
  • a plc stands for public limited company
    • owned by a shareholder
      • shares can be brought by anyone
    • more expensive to set up
      • business will have to be making enough profit to pay for it
        • they have to make sure that they will still be making sales after the conversion
          • to make sure they don't go into bankrupcy
            • if they go into bankrupcy the business will be shut down
    • it is easier to borrow money from banks
      • this is because a bank knows they will be able to pay the money back
        • meaning if they needed a loan they could have one

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