the business organisation

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  • 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
      • 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.
      • 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.

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