What is a business?

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  • Unit 3.1 ~ What is a business?
    • Mission Statement - sets out a business' purpose to direct the entire organization
    • Aim - a goal the business wants to achieve. These need to be SMART to understand progress the business has made.
    • Objective - detailed step-to-step plan to take to achieve an aim
    • SMART - Specific, Measurable, Achievable, Relevant, Time
    • Public Limited Company - a company with limited liability that everyone can join and you can access the business' accounts
    • Private Limited Company - a company with limited liability that you have to be invited to join and the business' accounts can be accessed
    • Unincorporated - the owner is the business with unlimited liability e.g. sole trader
    • Incorparated - difference between business and owner with limited liability e.g. PLC
    • Unlimited liability - owner is personally responsible for debts
    • Limited Liability - owner isn't personally responsibke and debt comes out of companies funds
    • Revenue - value of sales during trading period (credit or cash)

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