Read the summary and the most important questions on Business Notes YEAR 1

• 1 Business Notes

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• Why businesses exist

  employment,
  wealth,
  new products,
  enhance a country's reputation

• Advantages of being a Sole Trader

  Making key decisions can be motivating,
  Decisions can be made quickly so can quickly respond to changed in the market,
  Sole traders often have direct contact with the market,
  Setting up is straight forward

• Disadvantages of being a Sole trader

  Sources of finance are limited,
  Rely heavily on their own ability to make decisions,
  Can entail long working hours with limited holidays, very stressful,
  The personal possessions of sole traders are vulnerable due to unlimited liability

• Why remain a Private limited company instead of a public limited company

  The desire to retain control over the company,
  Taking decisions in the company's long-term interests
  Enjoying the profits generated,

• Benefits of being a PLC not a private limited company

  Assess to capital,
  Publicity
  Ability to take over other companies,

• Effect of interest rates

  SPICED = strong pound, imports cheaper, exports dearer
  
  WPIDEC=  weak pound, imports dearer, exports cheaper

• Influences on marketing objectives

  Internal = Finance, HR, Operations, Existing position, Overal Strategy
  External = Political, Economic, Social, Technological, Competition

• Increasing labour productivity

  training
  new reward system
  new technology
  better management
  new ways of working

• Difficulties in improving quality

  Employees = may feel criticised, extra work, believe suggesting imporvements is the managers job not theirs, 
  Business = may have to find new supplier, pay for extra training, decide on a culture to develope

• difficulties constructing a budget

  hard to accurately forecast sales
  risk of unexpected change
  decisions by governments and other public bodies