unit 2 Business

What does  it mean if a company has limited liability?

• business seen as a separate entity to owners.
•  business can be sued as an organisation.
•  shareholders not personally liable for business debts.
•  business is registered with Companies House.

How does having an objective help Fine Tune Aerials Ltd?

• gives Fine Tune Aerials Ltd a focus, something to aim at, eg doubling sales revenue in five years
• allows FTA to judge how well it has performed
•  ensures that resources are directed to an appropriate use.

Do you think that Fine Tune Aerials Ltd should relocate to a larger city?  Use Item A to justify your answer.

Answers for moving may include the following:

 larger market

 possibly less travelling to do, customers closer together

 more workers to choose employees from

 more likely to be kept up-to-date with developments in the industry.

Answers against moving may include the following:

 needs to find base, etc

 further commuting distances for managers

 could be more competition

 need to become established/get known.