UNTI 1 BUSINESS REVISION ]

1.1 different types of business activity

primary - extract rawe materials

secondary - manufacturing

tertiary - provide service e.g supermarkets, banks, dental surgeries

1.2 different sectors of operation

private sector - businesses owned by individuals - they exist to make profit for the owner/s

public sector - owned by government

third sector- charities

1.3 different forms of legal business ownership

sole trader - one owner, unlimited liability

partnership - two or more owners, unlimited liability

private limited companies ltd: owned by one or more shareholders, private sector

public limited companies plc: owned by two or more shareholders, private sector

government owned organisations: a business owned by the state and controlled by the government , public sector

charaties: a business that seeks cause rather then making money e.g. fighting cancer

community interest companies: a company set up to help society rather then making profit

1.4 facotrs which inform business ownership :

legal status-Incorporated businesses, like companies, are legally separate from their owners, which means they can sue or be sued independently, unlike sole traders or partnerships.

liability - unlimited liability puts at risk the persons possessions. companies and charities have limited and sole traders and partnerships have unlimited

funding - public sector may be financed from tax a third sector can recieve donation a private sector gets fund by borrowing or taking on additional owners

decision making - form of onwership is important

admin: sole traders have little paperwork to set up but PLC have alot of paperwork

1.5 differing business aims and objectives

survival

financial - increase revenue , reduce costs

reputation -

growth

reputation

being enterprised - becoming official

2.1 key tasks of functional areas of businesses

finance - financial control(financial forecasts), record keeping (financial statements)

marketing - promoting the busienss

sales - selling

human resources- planning recruitment, redundancies,remmueration and rewards

oparetoins managment - converting inpts to outputs,

customer service

business support services - IT support

research and development - developing new products and services in response to market research

purcahsing - stock control, finding supplier of raw materials

2.2 how business functoins interrelate with other business functions

nothing works in isolation

good communication is needed

1 bad performance gonna effect others

3. understand the effect of different organisational structures on how businesses operate

business can be organised by function, product or service , or geographical location

functoin - employees work with others in the same functional area

product or service - employees work together with others who produce particular product or service

geographical location - services need to be located close to cutomer

flat - few levels

tall- many levels

matrix - teams of people from different functional areas work together on specific projects

divisoin of work - the tasks that a bsuiness needs to do are shared out across the workforce in most businesses the divisoin of work is based on fucntoinal areas

3.3 how the elemts of organisational structures impact on business operations

communication paths are longer in tall structure then flat because of the layers it has to travel

4.be able to use financial information to chekc the financial health of business

cost - expense of running the business

revenue - the income the business gets

chash flow - money moving in and out the business

profit/loss - difference between a firms revenue and cost

break even point - the level of sales wehere total revenue equals total cost

4.2 how to calculate profit/loss and breka even

profit = revenue - cost

break even: fixed costs/ selling price - variable cost per unit

5.1 understnad the relationship between businesses and stakeholders

internal stakeholders : owners, employees and trade union

external stakeholders: everyone else