Business Activity (Objectives, Types of Organisation, Factors of Production, Primary Secondary and Tertiary Activity, Judging Success)

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  • Created by: I P B
  • Created on: 08-03-10 21:09

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Specification ­ What you need to know for this topic!
(Revision Notes Start on Next Page)

1 Business
activity and the

This section
examines the
objectives of
businesses, the
and the criteria
for judging
success. The
focus is on the
importance of
clear business
objectives and…

Page 2

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1.2 An understanding of the legal forms of business
Types of organisation and how their objectives might differ.
organisation Thus will include an understanding of sole traders,
partnerships, limited liability companies and business
franchises. An understanding of the factors which
influence choice of form of ownership including
ownership, control, sources…

Page 3

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Aims are the overall goals that a business seeks to achieve. For example,
`to be the world leader', `to provide products of the highest quality'

Mission Statement

The Mission Statement is a written statement to the stakeholders, of
the overall aims of the business and the purpose of…

Page 4

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Time-based ­ a deadline is set for achieving the objective

Why Set Objectives?

Objectives give business a clearly defined target
Plans can then be made to achieve these targets
Can help motivate employees
Enables business to measure progress towards to its stated aims

SURVIVAL A rather more…

Page 5

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most businesses, if not all, the creation of wealth by
adding value is a basic objective.
PROVIDING A Providing a service may be closely linked to making a
SERVICE profit ­ the better the service, the more customers will
be attracted and so profits will grow. For some
businesses, however,…

Page 6

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The UK is a mixed economy. This is made up of the private sector and
the public sector:

Private sector = this includes all the businesses that are owned by
private individuals.
Public sector = this includes organisations owned and run by the

Private Sector

· There are four…

Page 7

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Soletraders are their own boss, Sole traders carry all the risk and
they have independence responsibility
They are likely to be better Raising more money is often hard
motivated because they are
working for themselves
Soletraders are easy to set up, Can be difficult to expand the
and no formal…

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Why Partnerships?
The main reason is usually to expand the business by an increase in
capital or to gain specialist skills that are required for the business to
The aims of a partnership are usually similar to a sole trader i.e. profit,
survival, stability and people may enter into…

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Deed of partnership

A deed of partnership is a legally binding agreement between the
partners who are in business together. It describes how the partnership
will be run and the rights and duties of the partners themselves.

It's not necessary to have a deed of partnership in order to set…

Page 10

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Extra partners bring extra All the partners could face
capital financial ruin for one partners
New Partners - New Ideas Unlimited liability means that
the partners will be liable for
any debts
Business can gain professional
help through taking on a
qualified partner.

Private Limited Company

Private limited companies…


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