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Business objectives
What the business is trying to achieve, e.g. profit, growth, survival or providing a service. Objectives vary from business to business
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Private sector
The part of a business activity owned by private individuals. This is the greater part of business activity and includes sole proprietors, partnerships and private and public limited companies
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Public sector
The part of a business activity controlled by local and centeral government, including health, education, fire service, police and post office
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A form of business organisation which is a separate legal entity. It has limited liability and is owned by shareholders
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A typr of business organisation which has unlimited liability
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Deed of partnership
A legal agreement drawn up between partners of the business stating the responsibilities of partners (e.g. how the profit and losses are shared)
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A limited liability partnership. This is a new form of business organisation which trades as a partnership with limited liability
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Why may functions vary
Size and scale (how much product you have to make and sell), activities of a business (the amount of people + products they are using and services), type of customers (target audience), needs of customers (what they want), preferences of owners
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What is a mission statement important to play limited
it gives the employees direction for what they need to aim for, it tells customers expectations, it tells the supplier they can deliver the product, it gives a clear direction for stakeholders
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what profit does for a business
The owners + shareholders get larger returns on their investments, customers will have an improved variety of goods while employees have job security. Profit is the best way to guarentee survival
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Board of directors
Both private and public limited companies must have a board of directors. Members are elected by shareholders at the companys anual general meeting (AGM), at the AGM they make important decisions + run the company on their behalf
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Aims of a soletrader
Start - survive as they need the business to stay open. aims would then change as they complete the aims. 3-5 years it could be to gain a profit and then to grow
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Aims of private and public limited companies
Private - profit maximisations, expansion. Public - profit maximisation, expansion
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Why are limited companies aims different to soletraders and partnerships
Sole traders + partnerships are start up businesses so are less established, limited companies are bigger
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Why do businesses change from LTD to PLC
They don't just have to have family and friends as shareholders (more shareholders), they could become more well knows, they can go into different areas in their business (diversifying)
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An agreement in which a business(franchise) buys the right to sell goods or services of another business(franchisor) + allowed to use the franchisors name, NOT a type of business ownership, cannot operate by sole trader, partnership or PLC
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The name given to a business or person buying a franchise
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The name given to the person or business who offers to franchise to other businesses its trading methods, products + business logo
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A payment made to the franchisor based on the sales of revenue of the franchisor
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advantages and disadvantages of becoming a franchise
advantages - more promotion, more profit, fees from franchise. Disadvantage - Franchisee could give the business a bad reputation, they have to pay managment service fees
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Characteristics of a successful franchisee
Must have an interest in the business, be willing to here others ideas and follow instructions from franchisor, communication skills with the franchisor, organisation skills
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Benefits and drawbacks of becoming a franchisee
Benefit - big name leads to big success, on going support, greater access to finance. Drawbacks - initial and continual fees, they must do everything the franchisor wants, there is a lack of control within running the business
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Social enterprise
They are formed to provide help within social, they may provide general support (e.g. consumer rights and worker enterprises) or deal with specific issues. Attempts to rais awareness such as crime and drug abuse
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Private sector


The part of a business activity owned by private individuals. This is the greater part of business activity and includes sole proprietors, partnerships and private and public limited companies

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Public sector


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