Business Studies Y10

Stakeholder: A stakeholder is an individual or an organisation that effects or is effected by the activities of a business.

What is an objective?

S pecific : Clearly understood not vague.

M assurable: Easy to see if the objective has been met.

A chievable: The person can reach their target/objective.

R ealistic: The task is achievable, and reachable.

T ime related: The task is given a time frame that it has to be met with.

What is an aim?

It is the overall company goal.

Main objectives of a Business:

Survival

Growth

Profit

Customer Satisfaction

Market Share

To be ethical and sustainable

Tangible: They are goods that are physical and can be touched.

Non-Tangible: They are services, which can't be touched.

Why do people set up a business?

To be noticed.

Desire to help people (Social Enterprise).

To be in charge of their own career.

Can't get another job.

Primary Sector: Businesses that obtain raw materials using natural resources.

e.g. : Oil, mining, logging etc.

Secondary Sector: Processing raw materials into finished goods.

E.g. : Making iron ore and coal into steal.

Manufacturing, production, constructing and assembling etc.

Tertiary Sector: Providing a service to any aspect of the industry. They are intangible. 

What is business planning?

A business plan states, what a business is trying to achieve, and how they are going to get there.

Sections within a Business Plan

Background Information: On the investors and their previous experiences.

Analysis: Of the market and the firm's position in it.

Explanation: Of how it will be competitive. (USP)

Financial Position: Forecasts, sales, profits and cash flows.

Unincorporated: In law, the business and the owners are seen as the same thing. You sure the owner. (Sole Traders and Patnerships)

Incorporated: In law the business and the owners are seen as separate. You sue the business. (LTD's and PLC's)

• unlimited liability
• only one owner
• take all the profits
• have to bear all losses
• do not have a range of skills in the business
• have to make all the decisions by themselves

• unlimited liability
• can have between 2 and 20 partners
• partners can have arguments
• can share skills and decisions
• can have a 'sleeping partner' who justs invets in the business but does not make any decisions
• may have a deed of partnership OR profits are split 50:50

private limited company (ltd)

• limited liability
• Cannot sell it's shares on the stock exchange

public limited company (plc)

• limited liability
• expensive and time consuming to set up
• Can sell its shares on the stock exchange