y10 business management

sole trader: definition, an advantage and a disadvantage

• one person owns and runs the business

• advantage: easy and cheap to run 

• disadvantage: unlimited liability

partnership: definition, an advantage and a disadvantage

• 2-20 partners run the business together

• advantage: shared decision-making

• disadvantage: shared disputes

incorporation: definition, an advantage and a disadvantage

• when the business is legally its own identity

• advantage: limited liability for shareholders

• disadvantage: costs more money to setup

online business: definition, an advantage and a disadvantage

• sells on the internet

• advantage: no shop rent

• disadvantage: risk of credit card theft

bricks and mortar: definition, an advantage and a disadvantage

• has a real store you can visit

• advantage: you can try on items before purchase

• disadvantage: more costly

bricks and clicks: definition

both a physical store and an online presence

what factors must be considered when considering the location of a business?

• business model

• visibility

• cost

equity finance

• funds contributed by the owner 

• advantage: does not have to be repaid

• disadvantage: owner may expect a good return but only generate low returns

external sources

• short term: bank overdraft, trade credit

• long term: loan, leasing

factors affecting the choice of finance

• terms of finance

• flexibility

• level of control

csr - corporate social responsibility

when the business takes into consideration how their operations affect their stakeholders, environment, staff and wider public

csr - environmental issues

the owner needs to consider the impact their business has on the environment and how it can be better managed

csr - customer issues

• owners should ensure their products are of high quality and reliability

• owners should seek to respect and satisfy customers

csr - staffing issues

the owner should consider fair pay, staff morale and safe working conditions