Notesale: Turn your study into money

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Why Businesses exist
MAKE A PROFIT
Other aims:
 High quality goods/services
 Good customer service
 Good image + reputation
 Develop new products
 Diverse range
 Fully sustainable/minimise environmental impact
 Invest in local community

Mission, aims and objectives
A mission statement tells you about a business's intentions

Businesses set objectives a different levels
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Functional objectives (departmental objectives) : objectives for each department
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S + E objectives r becoming more important cos
people more likely to buy from a business with good ethical practices
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g
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Don't charge so don't
make a profit
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Most aim to make a profit apart
from organisations like charities
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(forced to sell personal assets
to pay business debts)
 Huge risk
Limited liability (PLC’s, ltd)
 Owners not personally responsible for business debts
 Shareholders have limited liability
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Most
they can lose is the amount they put in
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Ltd companies

PLC’s

Can't sell shares to the company
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Bought + sold
thru stockbrokers, banks, and share shops

Often small family businesses

Start as private and go public to raise funds

No minimum share capital

Need over 50,000 share capital
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Any1 who owns at least 1 share is a
shareholder
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Buy them low, sell them high
 May be paid a dividend
 Want to be involved in the running
 Believe in aims and objectives
 In a ltd to help the survive/grow
 Venture capitalists
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High = might sell to make a
profit
Economy - economy strong = more money to invest
...
e
...
sugar tax

Labour supply
 When unemployment high, goo supply of labour, business can hire staff easily,
won't have to pay high wages, which means costs are low
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 Low unemployment = shortage of labour
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Incomes and economic factors
 In recession business cut costs with redundancies etc
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g
...
g
...
g
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, working parents increased so demand for childcare
 Consumer tastes change e
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men's cosmetics

Environmental factors increase costs
 Govt legislation gets businesses to deal with environmental issues
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If not govt will fine
 Businesses try to minimise impact by being more sustainable etc
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 Being environmentally friendly gives ads and increases demand

Ethical business
 Consumer concerned abt ethical behaviour

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