Business Unit 1

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  • Created by: KKKane
  • Created on: 10-05-18 12:30
Give examples of 2 SMART Objectives
E.g Increasing profits my 20% by the next annum
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Explain benefits of SMART Targets
It gives employees a target to reach, which will motivate them if its reachable and realistic. which will allow quality to improve as worker productivity does also.
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What is a Mission statement
A mission statement is a brief written statement of the purpose of a company or organisation. it guides the actions of the business and spells out its overall goal and helps descision making for all levels of management.
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What is an Objective
Objectives are quantifuable targets or goals to be achieved within a given time frame.
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In order for an objective to be justifiable, quantifiable and motiviating they must be SMART... Explain each of the letters
Specific- gives clarity focus and purpose Measurable-motivational knowledge and if done wrong you can adapt and change the obj Achievable- By it being achievable and realistic, it gives motication and more likely success Realistic-It
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What is Profit?
Total revenue - Total costs
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What it Revenue?
Sales price X number of sales
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Why may a sole trader change to a Ltd?
To raise finance for the business... To change from unlimited liability to limited... To bring in more and new ideas into the business
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Advantages of a sole trader becoming a Ltd
They wil have more support... To sell their share and gain capital... To delegate the workload which will releive stress and allow for more important jobs to be done... New ideas
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Disadvantages of a sole trader becoming a ltd
You dont get to keep all of the profits... Not allowed to make all of the decisions therefore conflicts may occur especially depending upon the management style... Dividends... Cannot be as flexible with working hours... Not 100% in control.
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Reasons why a Ltd may become a Plc
To sell shares publicly on the stock exchange. Therefore, gaining capital... To grow the businss more quickly... To gain more attention and publicity, so more brand recognition... The abillity to rais larhe sums of capital for governments...Shares AD
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Disadvantages of a Ltd becoming a Plc
Takeover it easier and likely... Shareholders have voting right, what you want to do may not happen... Less flecibility, so not all of the money is yours. its the companies... Legal Formalities- So is alot more expensive to set up and not as easy.
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Advantages of Ltd becoming Plc
Access to capital. which allows the organisation to earn large sums of capital which can fund a range of activities. without the expenss of taking ouf a loan... It can enhance the companies public image. which gains brand loyalty and recognition.
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Other cards in this set

Card 2

Front

Explain benefits of SMART Targets

Back

It gives employees a target to reach, which will motivate them if its reachable and realistic. which will allow quality to improve as worker productivity does also.

Card 3

Front

What is a Mission statement

Back

Preview of the front of card 3

Card 4

Front

What is an Objective

Back

Preview of the front of card 4

Card 5

Front

In order for an objective to be justifiable, quantifiable and motiviating they must be SMART... Explain each of the letters

Back

Preview of the front of card 5
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