the business organisation
- Created by: hassaan boss
- Created on: 28-02-17 18:13
View mindmap
- The business organisation
- new product means line extension
- when firm merges with its supplier it can control the supply,cost and quality
- As a business grows the employees are more likely to join a trade union to protect their right as a single employee would be powerless to a big firm.
- PLC-public limited company
- Private limited companies can sell new shares if all the current shareholders agree.
- Limited liability if the business was to get bank rupt the owners will be able to avoid the dept.
- Helps raise capital which means they are able to grow bigger
and faster than
- advantages of plc
- Limited liability if the business was to get bank rupt the owners will be able to avoid the dept.
- They have a better status
- advantages of plc
- They have a better status
- The business might lose control if someone buys
to many shares.
- Disadvantages of plc
- The business can own less of their shares if people buy too much of it.
- Disadvantages of plc
- The business can own less of their shares if people buy too much of it.
- LTD-private limited company
- Divendence –Profit/money paid out to shareholders for what they are owned in comparison the % of the company they have a share in.
- Social influences – external factors which can effect a company's reputation e.g animal testing.
- Subsidies – A grant given usually by a government.
- The business objectives change as it grows eg their objective might be surviving and then as it grows it might be to make a sustainable profit.
- Growing oversea means selling product into different countries to make more profit.
- As a business grows it needs to make sure that it is taking care of ethical issues.
Similar Business Studies resources:
Teacher recommended
Comments
No comments have yet been made