Untitled Flashcards Set

A. Producing goods and services

In carrying out their function, businesses must do the following:

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B. Roles of business (economic and social roles) PIECE WIQ

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A. Classification of business

The 4 common methods used to classify businesses are: LISG – Let It Sound Good

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i) Classification by legal structure/ownership

Businesses can be classified by legal structure as follows:

Private sector businesses (or privately owned businesses) which make up: SPPP

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Public sector organisations which make up:

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ii) Classification by industry

There are 5 main types of industry groupings or sectors as follows: PST QQ

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iii) Classification by size

Businesses can be classified by size as follows:

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iv) Classification by geographical spread

Businesses can be classified by geographical spread as follows:

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B. Factors influencing choice of legal structure

There are three factors that will influence the choice of legal structure a business chooses.  They are:  SOF

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A. External Influences on Business

The main external influences on a business include:  MET GFC SLIP

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Changes in markets

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Economic influences

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Technological influences

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Geographical (and globalisation) influences

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Financial influences

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Competitive situation influences

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Social influences

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Legal influences

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Institutional influences

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Political influences

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B. Internal Influences on Business

The main internal influences on a business include:  MR BPL

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Management

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Resources

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Business Culture

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Product

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Location

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C. Stakeholders and the responsibility a business owes to each stakeholder

Internal stakeholders:

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External stakeholders

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A. Stages of the business life cycle (and their characteristics) EGMP

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Different types of mergers and acquisitions include:

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B. Challenges at each stage

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C. Factors that can contribute to business decline

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D. Voluntary and Involuntary Cessation

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Important concepts:

Insolvency/insolvent –

Administrator –

Receivership –

Liquidation –

Bankruptcy -