What is Business?

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  • Unit 1- What is Business?
    • Souces of Finance
      • Short Term
        • Debt Factoring
          • Disadvantages
            • Potential bad debt liability
          • Advantages
            • Improve cash flow
            • Shorten cash cycle
        • Overdraft
          • Advantages
            • Timely Payment
            • Less Paperwork
            • Flexability
          • Disadvantages
            • Higher interest rates
            • Risk of seizing
        • Trade Credit
          • Disadvantages
            • Only available to few
          • Advantages
            • Easy and automatic effect
            • Reduces capital requirement
      • Long Term
        • Share Capital
          • Advantages
            • Liquidity
            • Value of shares
              • Money quickly
          • Disadvantages
            • Higher cost
            • Ownership dilusion
        • Venture Capitalist
          • Disadvantages
            • Loss of control
            • Minority ownership status
          • Advantages
            • Connections
            • Business expertise
        • Bank Loan
          • Advantages
            • Multiple loan options
            • Convenient and accessible
          • Disadvantages
            • Risk or losing colateral
            • Lengthy application process
    • Business Ownership
      • Sole Trader
        • Advantages
          • Easy to set up
          • Personal incentive
        • Disadvantages
          • Limited access to capital
          • Unlimited liability
      • Partnership
        • Advantages
          • Greater access to capital
          • Shared responsibility
        • Disadvantages
          • Potential for conflict
          • Unlimited liability
      • Private Limited Company (LTD)
        • Disadvantages
          • Profit gets shared out
          • Difficult to sell shares
        • Advantages
          • Limited liability
          • More capital can be raised
      • Public Limited Company (PLC)
        • Advantages
          • Easy to raise funds
          • Dominate the market
        • Disadvantages
          • Setting up costs are high
          • Lose personal touch
      • Co-Operative
        • Advantages
          • Limited liability
          • Easy imformation
        • Disadvantages
          • Lack of interest
          • Lack of secrecy
      • Franchise
        • Disadvantages
          • Less control/ personal touch
        • Advantages
          • Less risk
          • Established brand
    • Stakeholders
      • Communities
      • Customers
      • Suppliers
      • Government
      • Owners
      • Pressure groups
      • Workers

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