Business Management (Higher)

Alexis Skinner
Mind Map by Alexis Skinner, updated more than 1 year ago
Alexis Skinner
Created by Alexis Skinner about 5 years ago


Mind Map on Business Management (Higher), created by Alexis Skinner on 04/06/2015.

Resource summary

Business Management (Higher)
1 Business in a Contemporary Society
1.1 Role of Business in Society
1.1.1 Wealth Creation
1.1.2 Production & Consumption of goods and services Good = Things we can touch Services = Things done for us Durable Goods = Things we can use again ex. computers Non Durable Goods = Only one use ex. food Consumption = Using up
1.1.3 Satisfaction of Wants This constant creation of new wants stimulates business to supply more goods and services, and so we have this cycle of new wants and new production.
1.1.4 Sectors of Activity Factors of Production Sectors of Industrial Action
1.2 Types of Business Organisations
1.2.1 Self - Employed - Sole traders or Partnerships Sole Trader Advanatges Simple to set up Make all the decions Disadvanatges Borrowing from bank, difficult Unlimited liabliltiy Can loose evrything Partnerships Advanatges shared responsibility More money invested Disadvantages Unlimited Liability Arguments
1.2.2 Private Limited Company (Ltd) & Public Limited Company (Plc) Requires Registration Minimum of 2 SHAREHOLDERS. Profit is shared in the form of DIVIDENDS Advantages Limited Liability Only Loose what they invest Less risk of Liqudation Disadvantages Registering = Competitiors can see information Cost in setting up in Admin Fee's.
1.2.3 Voluntary Sector Registered Have Objectives: To relieve poverty, to advance Education, To advance religon and benefit the Community To help people, NO PROFIT
1.2.4 Charity
1.2.5 Publicy-Funded Organisation
1.2.6 Multinationals Advantages Governemnts entice them to open Lower wage rates = Lower production cost Disadvantages Legislations may be different Currency may be weak = Profits converted into a good rate Globilasation (International Trading) Benefits Larger Market Develop an International Brand Constraints Competition from others Language difficulties
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