Business Management (Higher)

Business in a Contemporary Society
1. Role of Business in Society
  1. Wealth Creation
  2. Production & Consumption of goods and services
    1. Good = Things we can touch
      1. Services = Things done for us
    2. Durable Goods = Things we can use again ex. computers
    3. Non Durable Goods = Only one use ex. food
    4. Consumption = Using up
  3. Satisfaction of Wants
    1. This constant creation of new wants stimulates business to supply more goods and services, and so we have this cycle of new wants and new production.
  4. Sectors of Activity
    1. Factors of Production
    2. Sectors of Industrial Action
2. Types of Business Organisations
  1. Self - Employed - Sole traders or Partnerships
    1. Sole Trader
      1. Advanatges
        Simple to set up
        Make all the decions
      2. Disadvanatges
        Borrowing from bank, difficult
        Unlimited liabliltiy
        Can loose evrything
    2. Partnerships
      1. Advanatges
        shared responsibility
        More money invested
      2. Disadvantages
        Unlimited Liability
        Arguments
  2. Private Limited Company (Ltd) & Public Limited Company (Plc)
    1. Requires Registration
    2. Minimum of 2 SHAREHOLDERS. Profit is shared in the form of DIVIDENDS
    3. Advantages
      1. Limited Liability
        Only Loose what they invest
      2. Less risk of Liqudation
    4. Disadvantages
      1. Registering = Competitiors can see information
      2. Cost in setting up in Admin Fee's.
  3. Voluntary Sector
    1. Registered
    2. Have Objectives: To relieve poverty, to advance Education, To advance religon and benefit the Community
    3. To help people, NO PROFIT
  4. Charity
  5. Publicy-Funded Organisation
  6. Multinationals
    1. Advantages
      1. Governemnts entice them to open
      2. Lower wage rates = Lower production cost
    2. Disadvantages
      1. Legislations may be different
      2. Currency may be weak = Profits converted into a good rate
    3. Globilasation (International Trading)
      1. Benefits
        Larger Market
        Develop an International Brand
      2. Constraints
        Competition from others
        Language difficulties

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Business Management (Higher)

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	Created by Alexis Skinner over 9 years ago