AQA GCSE Business Studies -Unit 1

AQA GCSE Business Studies -Unit 1

1. The Business Organisation

   • Business Ownership Structures
     • Sole Traders
       • Advantages
         • Easy to set up
         • You are your own boss
         • You decide how to spend profit
       • Disadvantages
         • Long hours
         • Unlimited liability
     • Partnerships
       • Between 2-20 people
         • All have an equal say in the business
       • Advantages
         • More owners = more ideas
         • More owners = More people to share work
         • More capital to put into the business
       • Disadvantages
         • Each partner is legally responsible for what every other partner does.
         • Most have unlimited liability
         • Easily led to disagreements
     • Limited Companies
       • Private Limited Companies
         • Advantages
           • LIMITED LIABILITY
           • Independant
           • Owned by shareholders
           • Dividends paid to shareholders
           • Separate legal identity
           • Maximum of 50 people
         • Disadvantages
           • Maximum of 50 people
           • Expensive to set up
           • Have to publish financial informatilon
       • Public Limited Companies
         • Advantages
           • Easy access to shares as can be sold on stock market
           • Large amount of capital can be raised and easy access to it
           • Anyone can buy shares
           • Run by board of directors
           • Shareholders can have a vote and a say in how the business is run
           • LIMITED LIABILITY
             • If there are issues such as a loan not geting paid back,then the company is in trouble and NOT the owners
         • Disadvantages
           • Anyone can buy shares
           • Complicated
           • Lots of rules and regulations
           • Expensive
           • Hard to manage effectively
           • Greater risk of takeover
           • Legally obliged to publish accounts
   • Franchises
     • The legal right to use the name, logo and products of a firm.
     • Advantages
       • Less risk
       • Wider marketing
       • Training
       • Increase market share
     • Disadvantages
       • Can't create new products
       • Pre-established rules
       • Possible chance of poor reputation
   • Aims, Objectives and Business Success
     • Survival
     • Profit
       • The money left after all costs are taken from revenue
     • Growth
     • Market Share
       • The proportion of total market sales sold by one business
     • Environmental sustainability
       • This is about minimizing the impact of the firm's activities on the environment.
     • Ethical Considerations
       • Thinking about whether the company acts in such a way that society believes is morally right
     • Customer Satisfaction
       • This measures how happy consumers are with the products and services provided by the firm
     • Aims are long-term goals for a business
     • Objectives are short-term goals that businesses set to help them to achieve their aims
   • Stakeholders
     • Anyone who is affected by a business
     • Different Stakeholders have different ideas of success
       • Emplyees
         • They are interested in job security and promotional prospects.
       • Suppliers
         • If the business is successful then they will gain more revenue as the business will be buying more supplies from them.
       • The Local Community
         • If the business is successful then it may expand, this will create new jobs for the people in the community.