business 1

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advantages n disadvantages of private limited companies ?
✅limited liability (less risk), retain control (choose who to sell shares to) raise money through share issue
❌expensive - high set up costs, bc profits r onky shared w shareholders could be hard to motivate employees
1 of 10
advantages n disadvantages of public limited company ?
✅limited liability, easy to gain finance through share capital, opportunities for negotiation w suppliers for lower prices - EoS
❌risk of hostile takeover by rival (any1 can buy shares), expensive to set up, clash of ownership
2 of 10
what is unlimited and limited liability
limited - if business fails then owners are liable for the debts
unlimited - separate legal entity between business n owner - shareholders only risk is losing what they invested so rhis is good
3 of 10
what is market capitalisation
share price x number of shares issued
total market value of the business
eg Apple - $612.6bn shows huge value of the business
4 of 10
what are the benefits of scientific decision making ?
✅data proven - more systematic approach eg decision trees, investment appraisal, automation eg dynamic pricing
removes some systematic judgement
use data to give more accurate predictions / estimates
5 of 10
what are the drawbacks of scientific decision making instead of an intuitive approach ?
-systematic approaches can be expensive - increase costs
- doesn’t guarantee correct decision and may ignore crucial business experience of managers
intuitive is a hunch, gut feeling based
6 of 10
what is multichannel distribution?
when a business uses more then one method of distribution eg Apple has retail stores , online (direct to consumer), multiple retail partners eg Curry’s
7 of 10
benefits of a business using a multichannel distribution ?
✅reach more target market segments
✅customers expect to be able to buy in diff ways so if not doing then could be at a comp disadv
✅higher sales potential - even if no stock consumers can still buy online or elsewhere
8 of 10
disadvantages of using a multichannel distribution?
❌loss of profit margin as have to pay a % of profits to intermediaries eg retailers n distributors - could’ve been retained if sold direct ?
❌danger of pricing strategies getting confused
❌potential for channel conflict - competing w other retailers
9 of 10
what are types of digital marketing ?
email marketing , online advertising - social media (link to influencer marketing to show product endorsement n content marketing ) , search engine optimisation (SEO)
10 of 10

Other cards in this set

Card 2

Front

advantages n disadvantages of public limited company ?

Back

✅limited liability, easy to gain finance through share capital, opportunities for negotiation w suppliers for lower prices - EoS
❌risk of hostile takeover by rival (any1 can buy shares), expensive to set up, clash of ownership

Card 3

Front

what is unlimited and limited liability

Back

Preview of the front of card 3

Card 4

Front

what is market capitalisation

Back

Preview of the front of card 4

Card 5

Front

what are the benefits of scientific decision making ?

Back

Preview of the front of card 5
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